Oil & Gas News – April 2017
Energy giant Ineos has struck a deal to acquire the Forties Pipeline System in the North Sea from BP for US$250m (£199m). The pipeline transports about 450,000 barrels of oil per day on average – about 40% of UK production.
The 235-mile line links 85 North Sea oil and gas fields to the UK mainland, and to the Ineos site in Grangemouth. Sites at Aberdeen, the Kinneil terminal and gas processing plant, the Dalmeny terminal and the Forties Unity Platform will all transfer to Ineos when the deal is completed.
The pipeline carries oil to facilities adjacent to the Ineos-owned Grangemouth refinery and chemical plant. The Forties Pipeline System primarily comprises a 105-mile (169km) 36in pipeline from the unmanned offshore Forties Unity platform to the onshore terminal at Cruden Bay in Aberdeenshire. From there, a 36in onshore pipeline transports the oil 130 miles (209km) south to the Kinneil facilities, adjacent to the Ineos-owned Grangemouth refinery and chemical plant on the Forth. This is where it is processed before either being sent for export via the Dalmeny terminal or on to the refinery at Grangemouth. 20% of the oil that passes down the pipeline feeds the Ineos refinery to provide 80% of Scotland’s fuel.
Oil exploration firm Hurricane Energy has tripled its estimate of recoverable oil from Its Lancaster field in the North Sea. The AIM-listed company said it had raised its recoverable resource estimate for the field from 200 million in a 2013 assessment to 593 million barrels. Output from Lancaster is expected to start in the first half of 2019. A daily production rate of 17,000 barrels is expected soon after that.