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.