BP BP Plc

By Ian Walker

LONDON--Oil major BP PLC (BP.LN) confirmed Monday that its selling the Forties Pipeline System business, with assets including the main Forties offshore and onshore pipelines and other associated pipeline interests and facilities, to Ineos for $250 million.

BP said the sale won't affect its existing rights to capacity in the Forties pipeline system. BP announced on March 17 that it was in talks with Ineos to sell the business.

Under the agreement Ineos will pay BP $125 million in cash on completion, and an earn-out arrangement over seven years that totals up to $125 million.

BP group Chief Executive Bob Dudley said: "While the Forties pipeline had great significance in BP's history, our business here is now centered around our major offshore interests west of Shetland and in the Central North Sea."

The Forties pipeline system is a 100% BP-owned integrated oil and gas liquid transportation and processing system, with a capacity of more than 1 million barrels a day, serving the central area of the North Sea. Oil and gas liquids from over 50 offshore fields and St Fergus in Aberdeenshire, Scotland, flow through pipelines into the system.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

April 03, 2017 03:01 ET (07:01 GMT)

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