UK oil major BP is in talks with chemicals company Ineos for the sale of its Forties pipeline in the UK sector of the North Sea.
The Forties Pipeline System (FPS) is 100%-owned by BP. It is an integrated oil and gas liquid transportation and processing system with a nominal capacity in excess of one million barrels per day serving the central area of the North Sea. Oil and gas liquids from over 50 offshore fields and St Fergus flow through pipelines into FPS.
The Financial Times reported on Thursday that BP was in discussions with the chemicals group to buy what the newspaper called one of the most strategically important pieces of infrastructure in the North Sea, the FPS.
Forties is made up of about 100 miles of pipeline that transports about 450,000 barrels of oil per day on average, which is about 40% of UK production.
Approximately 300 BP staff are currently associated with operating and supporting the FPS business.
Offshore Energy Today reached out to BP seeking confirmation of these reports and further details about the company’s plans for the pipeline.
In an e-mailed response, a spokesperson for BP said: “BP can confirm it is in discussions with INEOS regarding a potential sale of the Forties Pipeline System. We remain committed to communicating openly with staff and our stakeholders as soon as we are able, and as commercial confidentialities allow, if any deal is confirmed or agreed.”
Earlier this year BP agreed to sell portions of its interests in the Magnus oil field and some associated pipeline infrastructure in the UK northern North Sea and in the Sullom Voe Terminal (SVT) on Shetland to EnQuest.
Offshore Energy Today Staff