INEOS has completed its acquisition of the North Sea Forties Pipeline System (FPS) and associated pipelines and facilities and the Kinneil Terminal from oil major BP.
The 235-mile pipeline system links 85 North Sea oil and gas assets to the UK mainland and the INEOS site in Grangemouth, Scotland, delivering almost 40% of the UK’s North Sea oil and gas production.
Ownership and operation of FPS, the Kinneil gas processing plant and oil terminal, the Dalmeny storage and export facility, sites at Aberdeen, the Forties Unity Platform and associated infrastructure has now transferred to INEOS FPS, together with approximately 300 personnel.
INEOS says the deal consolidates INEOS’ position as a top 10 company in the North Sea. It further expands the INEOS oil and gas business interests following the acquisitions of the Breagh and Clipper South gas fields in the Southern North Sea from Letter1 in 2015 and the Dong Oil and Gas business from DONG Energy at the end of September this year. Twenty percent of the oil that passes down the Forties pipeline feeds the Petroineos refinery that in turn provides more than 80% of Scotland’s transport fuels.
INEOS FPS CEO, Andrew Gardner says, “This represents another very significant deal for INEOS. The acquisition reunites North Sea and Grangemouth assets under INEOS ownership. INEOS is now the only UK company with refinery and petrochemical assets directly integrated into the North Sea and this deal provides the platform to potential future offshore INEOS investments.”
Andrew Gardner, CEO INEOS FPS said: “Our acquisition of the Forties Pipeline System and associated assets together with its highly skilled workforce is significant and strategic. It demonstrates INEOS’ commitment to securing a competitive long-term future for this critical piece of oil and gas infrastructure and provides the platform to potential future offshore INEOS investments. We will bring our focus and proven track record on safety, reliability and excellence in operations and apply them throughout the FPS business.”