BP selling stake in North Sea gas pipeline for £324 million
UK energy giant BP is selling yet another major North Sea asset.
On April 23 the firm announced that its interest in the Central Area Transmission System (CATS) in the North Sea will be sold for £324 million.
BP has agreed to sell its 36.22% stake in the major North Sea pipeline to majority shareholder Antin Infrastructure Partners.
Last year Antin struck a $1 billion deal to buy a controlling stake from BG Group.
“We have exciting plans to grow and develop CATS through additional investment,” said Mark Crosbie, managing partner of Antin Infrastructure Partners.
CATS is a combination of pipeline and processing facilities operated by BP. It transports and processes gas on behalf of over 20 customers, including most of the major North Sea gas producers.
The pipeline is 250 miles (404 kilometres) long and transports about 8% of the UK’s gas demand.
According to the Financial Times, BP has been selling its North Sea assets “as part of a broader disposal programme following the Deepwater Horizon disaster in the Gulf of Mexico in 2010.”
BP North Sea regional president Trevor Garlick said: “The North Sea is an important region for BP.
“Our strategy here is to focus our resources and investment to create an efficient, sustainable and competitive business which will contribute to UK energy security for many years to come.
“Key elements of this are the completion of our major projects in the central North Sea and Shetland area, and continued management of our portfolio.
“Cats has been a great business for BP but, aligned to the recommendations of the Wood Review, we believe securing this new owner will ensure a better long-term future for this key piece of North Sea infrastructure.
“Supporting staff and ensuring continued safe operations will be our priority as we go through this transition period.”