BP today announced it 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.
Trevor Garlick, Regional President BP North Sea said: ‘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.’
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.
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 sale does not impact BP’s rights to capacity in CATS.