23rd Apr 2015 10:15
LONDON (Alliance News) - BP PLC Thursday said it has agreed to sell its equity in the Central Area Transmission System business in the UK North Sea to Antin Infrastructure Partners for GBP324 million.
The CAT system, also known as the CATS pipeline, is a natural gas transportation system from the UK North Sea to Teeside in England. BP is currently operating the system, but has agreed to sell its entire equity in the business to Antim before the end of 2015.
Antim will pay BP an initial GBP302 million and a deferred GBP22 million subject to post-closing adjustments, said the FTSE 100 company.
BP said the sale will not affect its capacity to use the infrastructure owned by the CATS business. Staff working at the business unit will be transferred to the new company owned by Antim.
"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," said Trevor Garlick, BP's regional president for the North Sea.
The Wood review refers to a UK government review into the North Sea oil and gas industry that was headed by Ian Wood. He had warned that the recent slide in the oil price was a real issue for the North Sea, threatening jobs, assets and confidence.
BP shares were up 0.7% to 483.10 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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