Antin Infrastructure Partners SAS, Paris, has agreed to acquire BP PLC’s Central Area Transmission System (CATS) business in the UK North Sea for $486 million. The deal is expected to close before yearend.
BP currently operates CATS with 36.22% interest. Last year, Antin acquired BG Group’s 62.78% interest in CATS for total proceeds of $961 million (OGJ Online, July 11, 2014). Other partners in the project are ConocoPhillips with 0.66% interest and Eni SPA with 0.34% interest.
Antin will take BP’s portion of CATS as a fully operational business, including the transfer of existing staff. The agreement comprises a payment on completion of $453 million and a deferred amount of $33 million.
CATS consists of a fixed-riser platform linked to the Everest oil and gas platform, a 404-km, 1.7-bscfd capacity subsea pipeline, and a two-train, 1.2-bscfd capacity onshore gas processing terminal at Teesside.
“CATS has been a great business for BP but, aligned to the recommendations of the Wood Review (OGJ Online, Feb. 24, 2014), we believe securing this new owner will ensure a better long-term future for this key piece of North Sea infrastructure,” commented Trevor Garlick, regional president of BP North Sea.
The sale does not impact BP’s rights to capacity in CATS.