BP Plc (NYSE: BP) will sell its equity in the Central Area Transmission System (CATS) in the UK North Sea to infrastructure manager Antin Infrastructure Partners for 324 million British pounds, or US$486 million, BP said April 23.
BP currently operates CATS, and it will be sold as a fully operational business.
CATS has a riser platform next to the Everest platform in Block 22/10. A 36-in diameter, 404 km long pipeline connects the riser platform to the gas terminal at Seal Sands, Teesside. It is on 70 acres and can process 1,200 MMcf/d of gas.
CATS transports 8% of the UK’s gas demand, and has more than 20 third-party customers. It also transports gas from BP’s ETAP and Andrew facilities.
Around 60 BP employees are expected to transfer with the asset.
Antin Infrastructure Partners has a 62.78% interest, ConocoPhillips has 0.66% and Eni SpA (NYSE: E) has 0.34%. Antin already owns a majority interest in CATS, following its deal with BG last year. During second-quarter 2015, Antin will appoint a contract operator as duty holder of the pipeline and infrastructure to operate the facilities.
BP plans to complete the sale and transfer operatorship before year-end 2015.
A deferred amount of 22 million British pounds, or US$33 million, is subject to certain post-closing adjustments.
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