BP in USD 250-million divestment
UK
LONDON, April 3, 2017 – BP will sell its Forties Pipeline System (FPS), including both on- and offshore conduits, to chemicals company INEOS, the super-major announced on Monday.
INEOS will pay USD 125 million in cash, followed another USD 125 million spread out over a period of seven years. In addition to the 36-inch Cruden-Bay-to-Kinneil land-line, the transaction also covers the unmanned Forties platform, pumping stations, storage facilities, terminals and jetties, among other infrastructure.
“The pipeline has long been an important feedstock supplier to INEOS at Grangemouth. We believe that through also owning FPS, INEOS will be able to realise greater integration benefits and help secure a competitive long-term future for this important piece of UK oil and gas infrastructure,” Chief Executive Bob Dudley said in comments on the move.
In 2005, BP sold its shareholding in the Grangemouth refinery and chemicals plant to INEOS
“BP is returning to growth in the North Sea as we bring important new projects, including the Quad 204 redevelopment and Clair Ridge, into production and increase new exploration. 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,” Dudley added.
The FPS was entered into operations in 1975 to move crude from the UK’s Forties field. Today, the system is used by some 40 companies to transport liquids from around 85 UK and Norwegian fields.
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