Ineos buys out BP to take over Forties Pipeline in £200m deal

Kinneil terminal, near Grangemouth
Kinneil terminal, near Grangemouth

Petrochemicals giant Ineos – which owns the Grangemouth refinery – has completed its £200 million take-over of the Forties Pipeline System in the North Sea from BP.

The 235-mile pipeline system links 85 North Sea oil and gas platforms to the mainland and the Ineos site in Grangemouth. The deal also includes the nearby Kinneil Terminal.

The Forties Pipeline handles almost 40% of North Sea oil and gas output and the deal consolidates Ineos’ position as a top ten operator in the basin.

About 300 staff will transfer to Ineos FPS a newly-formed business that will be part of Ineos Limited.

Chief executive of Ineos FPS, Andrew Gardner, said: “This acquisition re-unites North Sea and Grangemouth assets under Ineos ownership.

“Ineos is now the only UK company with refinery and petrochemical assets directly integrated into the North Sea and this deal provides the platform to potential future offshore Ineos investments.”

Meanwhile, Ineos Shale has acquired the entire stakes held in three onshore gas exploration licences in Nottingham, Lincolnshire and Yorkshire from French oil rival Total.

Ron Coyle, Chief Executive, INEOS Shale, said: “Our acquisition of these assets demonstrates our ongoing commitment to this important industry.

“Shale gas represents an exciting opportunity for the UK, and has the real potential to bring much needed jobs and investment to local communities. The continuing growth of INEOS’s portfolio of licences means we will be at the very forefront of this transformational industry”.

2 Nov 2017

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