INEOS’s $250 million acquisition of the Forties Pipeline System (FPS) and associated pipelines and facilities from BP

Slaughter and May advised INEOS in connection with its proposed acquisition of the Forties Pipeline System (FPS) and associated pipelines and facilities from BP.

Under the terms of the agreement INEOS will pay BP a consideration of up to $250 million for the business, comprising a cash payment of $125 million on completion and an earn-out arrangement over seven years that could total $125 million.

FPS carries liquids production from 85 fields in the central and northern North Sea and several Norwegian fields on behalf of around 40 companies. Built, owned, and operated by BP, FPS was opened in 1975 to transport oil from Forties field, the UK’s first major offshore oil field. In 2016, the system’s average throughput was 445,000 b/d of oil and 3,500 tonnes/day of raw gas.

On completion of the deal the ownership and operation of FPS, the Kinneil terminal and gas processing plant, the Dalmeny terminal, sites at Aberdeen, the Forties Unity Platform and associated infrastructure will transfer to INEOS. These assets will transfer as fully operational units, at which point INEOS will be responsible for a strategic UK asset that delivers almost 40% of the UK’s North Sea oil and gas.

Slaughter and May has advised INEOS on the deal with a Corporate team led by Hywel Davies (partner, in picture), assisted by Robert Stern (consultant), Francesca Harris (associate), Angela Harford (associate); on Finance aspects acted Andrew Johnson (partner), Tanith Horner (associate); on Environmental law advised Samantha Brady (senior counsel); on Pensions and Employment matters acted Charles Cameron (partner), Lucy Duane (associate); on Competition law acted Claire Jeffs (partner), Aurora Luoma (senior counsel); and on Tax matters advised Sara Luder (partner) and Owen Williams (associate).

Involved fees earner: Hywel Davies – Slaughter and May; Robert Stern – Slaughter and May; Francesca Harris – Slaughter and May; Angela Harford – Slaughter and May; Andrew Johnson – Slaughter and May; Tanith Horner – Slaughter and May; Samantha Brady – Slaughter and May; Charles Cameron – Slaughter and May; Lucy Duane – Slaughter and May; Claire Jeffs – Slaughter and May; Aurora Luoma – Slaughter and May; Sara Luder – Slaughter and May; Owen Williams – Slaughter and May;

Law Firms: Slaughter and May;

Clients: Ineos;