BP sells its holding in North Sea pipeline system

BP has clinched a deal to sell its stake in a major North Sea gas pipeline system to a private equity buyer for £324m but said the area remains important to the company.

The oil and gas giant has agreed to sell its 36 per cent holding in the Central Area Transmission System (CATS) to Antin Infrastructure Partners as part of plans to get its North Sea portfolio in shape for the future.

In January, BP announced plans to shed 300 North Sea jobs in response to the plunge in the oil price since June.

The company’s chief executive Bob Dudley said this week that the high cost North Sea faced a painful adjustment to the oil price fall, which would lead to massive restructuring in the area.

Trevor Garlick, the head of BP’s North Sea business, said of the CATS deal: “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.... 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.”

BP is investing heavily in developing the Clair Ridge field and revamping the Schiehallion as set off Shetland. It brought the Kinnoull field in the Central North Sea onstream in December.

Mr Garlick added: “CATS has been a great business for BP but... we believe securing this new owner will ensure a better long-term future for this key piece of North Sea infrastructure.”

BP said CATS transports and processes gas for most of t he ma jor Nor th Sea producers.

It links 34 producing North Sea fields to an onshore terminal in Teesside.

Antin acquired a 63 per cent stake in CATS from BG for £562m in July.