First Reserve partners with Triangle Petroleum for Caliber Midstream JV


Energy-focused private equity firm First Reserve Corporation has formed Caliber Midstream Partners, a Denver-based joint venture focusing on midstream and infrastructure opportunities, alongside New York-listed Triangle Petroleum Corp.

Caliber will initially be capitalised with $180m of equity commitments, comprising $150m from the First Reserve Energy Infrastructure Fund and $30m from Triangle.

It will offer a full service pipeline solution to producers for oil, natural gas, flow back and produced water, and freshwater in the Williston Basin of North Dakota and Montana, one of the fastest growing oil basins in the US in terms of production.

Construction is underway on a Phase 1 pipeline system in McKenzie County which will serve the needs of Triangle and other Caliber customers by reducing the cost of oil and gas drilling and completion operations as well as the environmental impact associated with those operations

It also plans to expand its Phase 1 system in McKenzie County and to build new infrastructure in other counties of North Dakota and Montana as needed by its customers. It aims to begin transportation and processing operations in November 2012, with all business lines expected to be in service by August 2013

Caliber will provide services to Triangle under a 15-year volume-based contract, and will also seek to add future third party volumes to its system

First Reserve’s FREIF is a $1.23bn fund focused on energy infrastructure investments, including contracted midstream assets. Since inception, the fund has made six investments, five of which are in the form of joint ventures with strategic industry partners.

First Reserve recently sold its majority interest in subsea oil and gas services company Acteon Group.

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