Company - - Mar 21,2017
BP is in active talks with Ineos for vending the North Sea’s largest oil pipeline, which is utilized for the transportation of crude that prices the international Brent benchmark.
BP's Forties Pipeline System (FPS) is one of the oldest in the sector which started operating in 1975.
It transports oil close to 450,000 barrels of oil on an average daily basis from the unmanned offshore Unity platform in the North Sea to the onshore terminal at Cruden Bay located near Aberdeen. This quantity constitutes to about 40% of the total UK production.
Both the companies have confirmed the talks, which came into light during the same time last year. However, the deal was collapsed last summer due to a disagreement over the pricing of the assets.
The oil giant issued a statement saying, it can confirm about the discussions with Ineos “regarding a potential sale” for Forties Pipeline System. The firm further added, it remains committed to freely communicate with the stakeholders as well as staff “if any deal is confirmed or agreed.”
On the other hand, the union Unite, which was part of a bitter industrial dispute with Ineos regarding the Grangemouth refinery in 2013, stated it would look for an urgent meeting for discussion over the sale with the chemical firm.
Originally, the pipeline was built to transport a huge oil quantity of one million barrels from the Forties field, discovered in 1970, to the Grangemouth refinery situated near Edinburgh.
In 2003, BP sold its interests to Apache over the Forties field and sold Grangemouth refinery along with the chemical plants to Ineos in the year 2005. Presently, Grangemouth is Ineos’s largest manufacturing site in terms of volume of products.