BP seeks to divest Forties pipeline system in UK North Sea to Ineos
BP is reportedly negotiating with chemicals group Ineos over the potential sale of Forties pipeline in the UK North Sea.
The BP-owned Forties Pipeline System (FPS) has capacity to transport about 450,000 barrels of oil per day on average. It carries about 40 percent of the U.K.’s total oil production
BP was reported by BBC News as saying in a statement: "BP can confirm it is in discussions with Ineos regarding a potential sale of the Forties Pipeline System.
"We remain committed to communicating openly with staff and our stakeholders as soon as we are able, and as commercial confidentialities allow, if any deal is confirmed or agreed."
Confirming the talks, Ineos said in a statement: "At the moment the details of these conversations are confidential and we cannot say any more at this stage."
The sale is part of BP’s plans to divest its assets and pay for the 2010 oil spill in the US Gulf of Mexico, reported Bloomberg.
As part of this effort, the firm has already sold stake in the Central Area Transmission System natural-gas transportation system in the UK North Sea for $400m in 2015.
However, the talks with Ineos over potential sale has led concerns being raised concerns by UK trade union Unite.
Unite Scottish Secretary Pat Rafferty said: “Our members at BP will have major concerns about the possibility of becoming employees of Ineos, a company with a clear history of attacking our members’ pensions, as well as their terms and conditions, in order to maximize profit.”
The Forties pipeline was designed to transport oil from the Forties field to the Grangemouth refinery near Edinburgh.
Image: BP headquarters in London, UK. Photo: courtesy of WhisperToMe/Wikipedia.