INEOS is expanding in upstream business with a $250mln deal with BP

The Grangemouth refinery(By Guinnog - Own work, CC BY-SA 3.0, Link)

The Grangemouth refinery in 2011
(By GuinnogOwn work, CC BY-SA 3.0, Link)

INEOS announced that it agreed to acquire the Forties Pipeline System with associated pipelines and facilities from BP. The 378 km Forties pipeline system links 85 North Sea oil and gas assets to the UK mainland and the INEOS site in Grangemouth in Scotland.
Under the terms of the agreement INEOS will pay BP a consideration of up to $250 million for the business, comprising a cash payment of $125 million on completion and an earn-out arrangement over seven years that could total $125 million.
On completion of the deal the ownership and operation of FPS, the Kinneil terminal and gas processing plant, the Dalmeny terminal, sites at Aberdeen, the Forties Unity Platform and associated infrastructure will transfer to INEOS. These assets will transfer as fully operational units, at which point INEOS will be responsible for a strategic UK asset that delivers almost 40% of the UK’s North Sea oil and gas.
20% of the oil that passes down the pipeline feeds the INEOS refinery to provide 80% of Scotland’s fuel.
The acquisition and transfer of operatorship is said to be targeted to complete in Q3 this year, subject to the receipt of regulatory and other third party approvals.