Ineos has completed the US$250m (£191m, €215m) acquisition of the 378-km long Forties Pipeline System (FPS), the Kinneil terminal and gas processing plant as well as the Dalmeny terminal in the United Kingdom from BP. The pipeline sale was announced by BP and Ineos in April 2017 and the payment included a cash payment of US$125m and an earn-out arrangement over seven years for the remaining US$125m.
The Forties pipeline is the North Sea largest and oldest pipeline, which transports oil from the Unity offshore platform to the onshore terminal at Cruden Bay (Aberdeen), to the Kinneil terminal near the Ineos' Grangemouth oil refinery. The pipeline has a transportation capacity of 610,000 bbl/d and currently transports 445,000 bbl/d (2016) from 85 fields in the Central and Northern North Sea and from several Norwegian fields on behalf of 21 companies. It delivers around 40% of all UK oil production, and 20% of the oil that goes through the pipeline feeds Ineos refinery, which provides 80% of Scotland's fuel.
In addition, Ineos Shale (Ineos Upstream's onshore division) also completed the acquisition of Total E&P's onshore exploratory licence portfolio (north of England, UK), including Total’s entire 40% interest in PEDLs 139 & 140, and a 30% interest in PEDL 273, 305 & 316 (being 60% of Total’s current 50% holding).
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