Ineos completes £199m acquisition of North Sea pipeline
The 235-mile pipeline system links 85 North Sea oil and gas fields to the UK mainland.
Energy giant Ineos has completed its acquisition of the Forties Pipeline System (FPS) in the North Sea from BP.
The £199m transaction, which also includes the Kinneil Terminal, sees Ineos take control of a system that delivers almost 40% of the UK's North Sea oil and gas.
The move involves around 300 staff transferring to Ineos FPS Limited, a newly-formed business that will be part of Ineos Limited.
Chief executive of Ineos FPS, Andrew Gardner, said it was a "very significant deal" for the company.
"The acquisition reunites North Sea and Grangemouth assets under Ineos ownership," he said.
"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."
The Forties pipeline was opened in 1975 to transport oil from BP's Forties field.
Today, the 235-mile pipeline system links 85 North Sea oil and gas fields to the UK mainland and the Ineos site in Grangemouth, with an average daily throughput of around 445,000 barrels of oil.
Under the terms of the deal announced in April, Ineos was to pay BP 125 million US dollars (£99.5m) on completion and an earn-out arrangement over seven years that totals up to a further 125 million US dollars.
Ineos said it has now taken on 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 other associated infrastructure in the deal, which consolidates its position as a top ten company in the North Sea.