News sources have reported that after looking for a buyer for over a year, BP Plc is currently in talks with Ineos AG to sell its Forties oil pipeline. This is the North Sea’s oldest and largest oil pipeline and, arguably, one of the most strategically important pieces of infrastructure in the region.
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"BP in talks to sell Forties pipeline"
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While the companies have confirmed that discussions have taken place, both declined to give details of the value or timescale of the acquisition.
The 100 mile Forties pipeline system transports approximately 450 000 bpd of oil from 80 oilfields. As reported by The Telegraph: “It transports oil from the unmanned offshore Unity platform in the North Sea to the onshore terminal at Cruden Bay near Aberdeen. From here 130 miles of onshore pipes carry the oil to the Kinneil terminal near Ineos’s Grangemouth oil refinery.”
The pipeline system was originally built to transport oil from the Forties field to the Grangemouth refinery, which BP also owned at the time. The company sold the Forties field to Apache Corp. and the refinery to Ineos last decade but retained control of the pipeline system.
The Financial Times has highlighted that the sale of the pipeline system would complete BP’s withdrawal from its older assets in the North Sea.
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/17032017/bp-in-talks-to-sell-forties-pipeline/