In what has been described as ‘a natural fit’ INEOS has completed the acquisition of the North Sea Forties Pipeline System (FPS) and Kinneil terminal from BP. Now with the responsibility for a strategic UK asset that delivers almost 40 per cent of the UK’s North Sea oil and gas output, INEOS has further strengthened its long-term oil and gas activity. Three hundred people have transferred to INEOS FPS Limited, the newly formed business that will be part of INEOS Limited.
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 2017. Twenty per cent of the oil that passes down the Forties pipeline feeds the P refinery that in turn provides more than 80 per cent of Scotland’s transport fuels.