Popular News
Pre Next

BP sells Forties North Sea pipeline to Ineos

BBC - Energy giant Ineos has struck a deal to acquire the Forties Pipeline System in the North Sea from BP for US$250m (£199m).

The pipeline transports about 450,000 barrels of oil per day on average - about 40% of UK production.

It is one of the oldest in the sector, having started operating in the Forties field in 1975.

The 235-mile line links 85 North Sea oil and gas fields to the UK mainland, and to the Ineos site in Grangemouth.

Sites at Aberdeen, the Kinneil terminal and gas processing plant, the Dalmeny terminal and the Forties Unity Platform will all transfer to Ineos when the deal is completed.

BP originally operated the Forties oil and gas field, the pipeline and the refinery.

It sold its interests in the oil field to Apache in 2003 and sold the Grangemouth refinery and chemical plants to Ineos in 2005.

Forties Pipeline System employs about 300 staff at Kinneil, Falkirk, Dalmeny, Aberdeen and offshore.

Ineos chairman and founder Jim Ratcliffe said: "The North Sea continues to present new opportunities for Ineos.

"The Forties Pipeline System is a UK strategic asset and was originally designed to work together to feed the Grangemouth refinery and petrochemical facilities.

"We have a strong track record of acquiring non-core assets and improving their efficiency and reliability, securing long-term employment and investment."

Under the terms of the deal, Ineos will pay BP US$125m (£99.5m) on completion and an earn-out arrangement over seven years that totals up to a further US$125m.

BP chief executive Bob Dudley said: "While the Forties pipeline had great significance in BP's history, our business here is now centred around our major offshore interests west of Shetland and in the Central North Sea."

The Forties Pipeline System primarily comprises a 105-mile (169km) 36in pipeline from the unmanned offshore Forties Unity platform to the onshore terminal at Cruden Bay in Aberdeenshire.

From there, a 36in onshore pipeline transports the oil 130 miles (209km) south to the Kinneil facilities, adjacent to the Ineos-owned Grangemouth refinery and chemical plant on the Forth.

This is where it is processed before either being sent for export via the Dalmeny terminal or on to the refinery at Grangemouth.

20% of the oil that passes down the pipeline feeds the Ineos refinery to provide 80% of Scotland's fuel.

Ineos is best known in Britain for its shale gas fracking operations.

 

 

 

Source: www.bbc.com  |  Last Updated: 3-April-2017 at 1:29 PM UTC

Write a comment

View previous comments

No comments to display