Oil giant BP insists it remains committed to the UK North Sea despite it yesterday agreeing to sell its 36.22% stake in the Central Area Transmission System (Cats) pipeline system to a private-equity firm for £324million.
BP is the operator of Cats, which is now 99% owned by Antin Infrastructure Partners. ConocoPhillips and Eni own the other 1% between them.
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.”
He added: “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 – transfer of undertakings (protection of employment) – 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 Cats infrastructure can handle more than 1.7billion cubic feet of natural gas a day, exported through a pipeline system which starts at a riser platform next to the BG Group-operated Everest gas field in the central North Sea and ends 25o miles away at a processing terminal on Teesside.
It is currently used by more than 20 customers, including most of the major North Sea gas producers, and serves 34 producing fields.
Antin’s Cats management team will be led by Andy Hessell, whose 26 years of industry experience includes a recent spell as vice-president, commercial operations North Sea and Angola, at BP.
Mark Crosbie, managing partner at Antin, said: “Having seen first-hand the strength of the Cats operation and the potential for growth, we have decided to increase our share in the business.
“We have exciting plans to grow and develop Cats through additional investment. We are delighted Andy has agreed to come on board as managing director and have no doubt that he will be an excellent leader of the business.”
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