Tampnet to acquire BP subsea system in the Gulf of Mexico
Tampnet has entered into an agreement to acquire a 1,200km subsea cable system in the Gulf of Mexico from BP Exploration & Production Inc (BP).
The undisclosed deal is due to complete subject to certain third party and regulatory conditions and is likely to be funded through Tampnet’s ‘internal resources and existing credit facilities’.
“This is an extremely important milestone for Tampnet as it enhances our infrastructure in the Gulf of Mexico from which we can serve even more customers,” said Per Helge Svensson, CEO, Tampnet.
“We believe that an independent telecoms operator will be attractive to new customers and we are committed to maintaining the highest standards of service to existing and new customers.”
Tampnet currently has access rights to the subsea cable and generates close to 15% of its revenues in the Gulf of Mexico. The deal will give Tampnet ownership of this piece of subsea infrastructure, significantly strengthening its market position in the region.
“This acquisition will enable Tampnet to replicate its North Sea business model in the Gulf of Mexico and fits with our aim of growing Tampnet internationally,” added Phil White, managing partner at 3i.
“Having a reliable communications network is operation critical for offshore service providers, particularly as they prioritise digitalisation.”
The subsea system comes with a number of long-term contracts with large-scale customers in the region. As a result, Tampnet will continue to enhance the system to provide increased direct fibre access and LTE coverage to customers across the maritime industry.
“The acquisition of the BP fibre cable system marks a key strategic move for Tampnet in the Gulf of Mexico, de-risking the business by securing long-term access to the critical backbone fibre infrastructure in the region,” said Richard Laing, chair of 3i Infrastructure.