INEOS has agreed to acquire the Forties Pipeline System (FPS) and associated pipelines and facilities from BP. The 235 mile Forties pipeline system links 85 North Sea oil and gas assets to the UK mainland and the INEOS site in Grangemouth in Scotland.
Under the terms of the agreement INEOS will pay BP a consideration of up to USD 250M for the business.
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. These assets will transfer as fully operational units, at which point INEOS will be responsible for a strategic UK asset that delivers almost 40% of the UK’s North Sea oil and gas.
20% of the oil that passes down the pipeline feeds the INEOS refinery to provide 80% of Scotland’s fuel.
The agreement further expands the INEOS Upstream business following the acquisition of the Breagh and Clipper South gas fields in the Southern North Sea.
The acquiring entity will be INEOS FPS Limited, which forms part of INEOS Limited, but is not part of the IGH SA Group.