Ineos confirmed it acquired the 575,000 bpd Forties Pipeline System (FPS) from BP in a $250 million deal. The move makes Ineos responsible for a strategic U.K. asset that delivers almost 40% of the nation’s North Sea oil and gas.
“The acquisition reunites North Sea and Grangemouth assets under Ineos ownership. Ineos is now the only U.K. company with refinery and petrochemical assets directly integrated into the North Sea,” said Jim Ratcliffe, chairman and founder of Ineos.
The 235-mile pipeline links 85 North Sea oil and gas assets to the U.K. mainland and the Ineos site in Grangemouth in Scotland. The oil passing through the pipeline (20%) feeds the Ineos refinery to provide 80% of Scotland’s fuel.
On completion of the deal, the ownership and operation of FPS, the Kinneil terminal and gas processing plant, the Dalmeny terminal, sites at Aberdeen, the Forties Unity Platform and associated infrastructure will transfer to Ineos.
It is expected about 300 people who operate and support the FPS business at Kinneil, Grangemouth, Dalmeny and offshore will become part of the Ineos Upstream business.
The acquisition and transfer of operatorship is expected to be complete in the third quarter.
The deal further expands the Ineos Upstream business following the acquisition of the Breagh and Clipper South gas fields in the Southern North Sea from Letter1 in 2015, which currently supply gas to one in 10 British homes.
Built, owned and operated by BP, the Forties pipeline was opened in 1975 to transport oil from the Forties field, the U.K.’s first major offshore oil field. FPS carries liquids production from 85 fields in the Central and Northern North Sea and several Norwegian fields on behalf of about 40 companies.
BP sold its interests in the Forties field to Apache in 2003 and sold the Grangemouth refinery and chemical plants to Ineos in 2005.