Samchully Asset Management Co. Ltd. Acquires 34% Interest in Neptune Gas
HOUSTON -- February 5, 2013
Samchully Asset Management Co. Ltd. (“Samchully AMC”) today announced that one
of its funds has completed the acquisition of a 34% interest in the Neptune
Gas Processing Plant (“Neptune”) located in St. Mary Parish, Louisiana from
Marathon Oil Company (“Marathon”), a wholly owned subsidiary of Marathon Oil
Corporation (NYSE: MRO). The total purchase price of approximately $170
million is comprised of 100% cash which has been paid to Marathon.
The transaction represents the first direct investment in a United States
midstream asset by a Korean financial entity. For purposes of the acquisition,
Samchully AMC established a special purpose vehicle that is owned by a new
fund, with investors reported to be comprised of Korean pension funds.
Neptune is a cryogenic natural gas processing plant with a capacity of 650
million cubic feet per day. Enterprise Gas Processing, LLC (“Enterprise”), an
affiliate of Enterprise Products Partners L.P., is the operator of the plant
and owns the remaining 66% interest. Neptune provides processing services for
producers into multiple onshore and offshore gas pipeline systems including
TransCanada Offshore (ANR), Acadian, Columbia Gulf Transmission, Nautilus and
Sea Robin - East (Trunkline) pipelines.
"We are pleased to announce the acquisition of Neptune demonstrating our
ability to execute on our strategy of investing in North American energy,”
said DH Kim, Chief Investment Officer of Samchully AMC. "We look forward to
expanding our North American footprint by continuing to explore midstream and
upstream opportunities within the region," continued Mr. Kim.
Wells Fargo Securities, LLC acted as exclusive financial advisor to Samchully
AMC and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel.
Tudor, Pickering, Holt & Co., LLC served as financial advisor to Marathon and
Baker Botts L.L.P. served as legal counsel.
About Samchully AMC
Samchully Asset Management Co. Ltd., the investment arm of the Samchully
Group, primarily focuses on direct investment in energy-related businesses
such as oil & gas upstream and midstream and power & utilities. Samchully AMC
is co-manager of Troika PEF, one of the largest overseas natural resource
development funds initiated by the Korean Ministry of Knowledge Economy.
Samchully Group is the largest city gas distributor and major distributor of
district heating and electricity in Korea. Samchully Group has continued its
energy business for the last fifty-eight years and remains profitable since
About Marathon Oil Corporation
Marathon Oil Corporation is an independent international exploration and
production company. Based in Houston, Texas, Marathon Oil had net proved
reserves at the end of 2011 of 1.8 billion barrels of oil equivalent in North
America, Europe and Africa. For more information, please visit the Company’s
website at http://www.marathonoil.com.
Samchully Asset Management Co. Ltd.
DH Kim, (713) 357-9857
Chief Investment Officer
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