BP has agreed to sell its equity in the Central Area Transmission System (CATS) business in the UK North Sea to Antin Infrastructure Partners for £324 million ($486 million). BP is currently the operator of CATS.
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.
CATS transports approximately 8% of the UK’s gas demand, and includes a riser platform located adjacent to the Everest platform in block 22/10; a 36-inch-diameter, 404-kilometer-long pipeline, from the riser platform to the gas terminal; and a gas terminal at Seal Sands, Teesside. It occupies a 70-acre site and has a processing capacity of 1,200 million standard cubic feet of gas per day.
Antin will appoint a contract operator as duty holder of the CATS pipeline and associated infrastructure, to operate the facilities on its behalf. BP staff members are expected to transfer to this contract operator. Antin expects to identify and appoint a contract operator during the second quarter of 2015.
BP aims to complete the sale and transfer of operatorship before the end of 2015. The sale does not impact BP’s rights to capacity in CATS. Before the transaction concludes, CATS owners include BP, 36.22%; Antin Infrastructure Partners, 62.78%; ConocoPhillips, 0.66%; and Eni, 0.34%.