INEOS Completes Acquisition of the North Sea Forties Pipeline System and Kinneil Terminal from BP

INEOS, October 31, 2017

INEOS has completed its acquisition of the 235-mile Forties Pipeline System (FPS) and associated pipelines and facilities from BP.  The Forties pipeline was opened in 1975 to transport oil from BP’s Forties field, the UK’s first major offshore oil field. Today, FPS carries liquids production from some 85 fields in the Central and Northern North Sea and several Norwegian fields on behalf of 21 companies. The system has a capacity of 610,000 barrels of oil a day. BP sold its interests in the Forties field to Apache in 2003 and sold its Grangemouth refinery and petrochemical plants to INEOS in 2005. 

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.  The acquisition encompasses the following assets:

  • Forties Pipeline System (100%)
  • FPS equipment on Apache’s Forties Charlie platform.
  • Forties Unity platform.
  • BP’s interest in the GAEL N (54.3%), and GAEL S (30.5%) pipeline.
  • 36” Forties sea-line.
  • St Fergus-to-Cruden Bay natural gas liquids line.
  • Cruden Bay terminal.
  • 36” Cruden Bay-to-Kinneil land-line.
  • Netherley, Brechin and Balbeggie pumping stations.
  • Kinneil terminal.
  • LPG storage and export at Grangemouth and Grangemouth docks.
  • Kinneil-to-Dalmeny pipelines.
  • Dalmeny tank farm and pipelines to Hound Point.
  • Hound Point jetties.

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.”  

The deal consolidates INEOS’ position as a top ten 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. 20% of the oil that passes down the Forties pipeline feeds the P refinery that in turn provides more than 80% of Scotland’s transport fuels. 

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