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  • Tampnet - 500 x 367.png (1)
    Tampnet
    Norway

    Communications

    Overview

    Tampnet is the leading independent offshore communications network operator in the North Sea and the Gulf of Mexico. It is headquartered in Norway, with operations in the UK, Scandinavia and the USA.

    Tampnet provides high speed, low latency and resilient data connectivity offshore through an established and comprehensive network of fibre optic cables, 4G base stations, and microwave links. It operates across four main business areas: fixed installations, mobile rigs and vessels, roaming for offshore workers and international carriers. The majority of its business involves providing fixed fibre links to oil platforms.

    Recent developments

    Tampnet performed strongly in the year and materially above 2021 levels. Its core business in the North Sea performed well as customers continued to upgrade their bandwidth requirements and invest in digital initiatives. Furthermore, we are seeing increasing momentum in the basin due to the higher oil price and a renewed focus on security of energy supply from European nations. During the year, Tampnet renewed an important contract with Equinor, providing long-term visibility and de-risking future cashflows.

    Beyond its historic oil and gas customers, Tampnet is developing a number of new initiatives to provide digital connectivity to other players in the region such as government services, offshoreagriculture and carbon capture.

    In the Gulf of Mexico, Tampnet is seeing good momentum. There were some delays in installations, due to Covid-19 and severe weather conditions, but the management team is in discussions on several new projects and data demand is continuing to increase steadily.

    Investment Rationale

    3i Infrastructure acquired 50% of Tampnet in March 2019 alongside Danish pension fund ATP, having committed to invest in July 2018.

    • Tampnet’s fibre optic links provide customers with mission-critical reliable communications
    • Benefits from the growing requirement for high bandwidth and low latency in data networks
    • More than 50 customers including oil and gas operators, offshore service providers and telecom operators
    • Opportunity to grow into new segments such as offshore wind, commercial vessels and the point-to-point carrier segment

    Sustainability

    The core of Tampnet’s approach to sustainability is to make a positive contribution to the underlying industry, by enabling oil and gas producers to extract more efficiently from existing resources. Tampnet is also providing connectivity and digital services in the offshore wind segment.

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