BP Plc (NYSE: BP) will sell its equity in the Central Area Transmission System (CATS) in the UK North Sea to infrastructure manager Antin Infrastructure Partners for 324 million British pounds, or US$486 million, BP said April 23.
BP currently operates CATS, and it will be sold as a fully operational business.
CATS has a riser platform next to the Everest platform in Block 22/10. A 36-in diameter, 404 km long pipeline connects the riser platform to the gas terminal at Seal Sands, Teesside. It is on 70 acres and can process 1,200 MMcf/d of gas.
CATS transports 8% of the UK’s gas demand, and has more than 20 third-party customers. It also transports gas from BP’s ETAP and Andrew facilities.
Around 60 BP employees are expected to transfer with the asset.
Antin Infrastructure Partners has a 62.78% interest, ConocoPhillips has 0.66% and Eni SpA (NYSE: E) has 0.34%. Antin already owns a majority interest in CATS, following its deal with BG last year. During second-quarter 2015, Antin will appoint a contract operator as duty holder of the pipeline and infrastructure to operate the facilities.
BP plans to complete the sale and transfer operatorship before year-end 2015.
A deferred amount of 22 million British pounds, or US$33 million, is subject to certain post-closing adjustments.
Recommended Reading
Oceaneering Won $200MM in Manufactured Products Contracts in Q4 2023
2024-02-05 - The revenues from Oceaneering International’s manufactured products contracts range in value from less than $10 million to greater than $100 million.
E&P Highlights: Feb. 5, 2024
2024-02-05 - Here’s a roundup of the latest E&P headlines, including an update on Enauta’s Atlanta Phase 1 project.
CNOOC’s Suizhong 36-1/Luda 5-2 Starts Production Offshore China
2024-02-05 - CNOOC plans 118 development wells in the shallow water project in the Bohai Sea — the largest secondary development and adjustment project offshore China.
TotalEnergies Starts Production at Akpo West Offshore Nigeria
2024-02-07 - Subsea tieback expected to add 14,000 bbl/d of condensate by mid-year, and up to 4 MMcm/d of gas by 2028.
US Drillers Add Oil, Gas Rigs for Third Time in Four Weeks
2024-02-09 - Despite this week's rig increase, Baker Hughes said the total count was still down 138 rigs, or 18%, below this time last year.