04 Apr Ineos scoops up BP’s North Sea pipeline system
Energy Major Ineos has signed a deal to purchase BP’s Forties Pipeline System for US$250 million.
The pipeline carries almost 40% of North Sea oil and gas production – around 450,000 barrels of oil per day – and is one of the oldest in the sector having started operations in 1975.
The 235-mile pipeline serves 85 North Sea oil and gas fields to the UK mainland and to Ineos’ Grangemouth refinery in Scotland. The Scottish site provides about 80% of Scotland’s fuel.
Ineos will make an initial payment of $125 million, expected in Q3 2017, and then a further $125 million over the next seven years based on an earn-out arrangement.
The deal is a further reflection of oil majors divesting North Sea assets. In January BP sold a stake in the Magnus oilfield and in the same month Royal Dutch Shell agreed to sell a number of North Sea oil and gas assets to private equity-backed firm Chrysaor.