The FPS business is a natural fit for INEOS. Now with the responsibility for a strategic UK asset that delivers almost 40% of the UK’s North Sea oil and gas output, INEOS has further strengthened its long-term oil and gas activity.
The takeover was welcomed by Deirdre Michie, chief executive of Oil & Gas UK, who said:
“The Forties Pipeline, which transported 40% of the North Sea’s production last year, is a critical UKCS asset and its integration with Ineos’ assets at Grangemouth is an efficient solution that will help unlock new investment opportunities upstream.”
“This represents another very significant deal for INEOS,” said FPS CEO Andrew Gardner. The acquisition reunites 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.”
The 235-mile pipeline system links 85 North Sea oil and gas assets to the UK mainland and the INEOS site in Grangemouth.
Ownership and operation of FPS, the Kinneil gas processing plant and oil terminal, the Dalmeny storage and export facility, sites at Aberdeen, the Forties Unity Platform and associated infrastructure has now transferred to INEOS FPS, together with approximately 300 personnel.
INEOS Shale has also acquired the UK onshore shale licence interests from Total E&P.
“Our acquisition of these assets represents an important development for INEOS Shale and demonstrates our ongoing commitment to this important new industry which we believe can bring much needed jobs and investment to the economy,” said Ron Coyle, CEO of INEOS Shale.