British Petroleum (BP) has agreed to sell its equity in the Central Area Transmission System (CATS) business in the UK North Sea to Antin Infrastructure Partners.
The assets have been acquired for £324 million (US$453 million).
BP is currently the operator of CATS. Subject to the receipt of regulatory and other third party approvals, BP aims to complete the sale and transfer of operatorship before the end of 2015.
The agreement comprises a payment on completion of £302 million ($453 million) and a deferred amount of £22 million ($33 million), subject to certain post-closing adjustments.
The sale of CATS will be as a fully operational business, with staff expected to transfer to the new employer with contractual terms and conditions protected under UK TUPE regulations.
CATS is currently owned by: BP (36.22%), Antin Infrastructure Partners (62.78%), ConocoPhillips (0.66%), and ENI (0.34%). CATS comprises:
Trevor Garlick, Regional President BP North Sea stated:
"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."