BP plc (ADR) (NYSE:BP) has come to an agreement to hand over the shares that the company owns in the Central Area Transmission System.
The shares will be sold to Antin Infrastructure Partners for $486 million. Once the contract is complete, Antin will receive almost 100% of the total share ownership in the Central Area Transmission System. This is because the company had previously acquired more shares in CATS pipelines from BG in 2014.
BP plc (ADR) (NYSE:BP) included the sale of its shares in the big European gas pipeline as part of the company’s $10 billion disposal program. The two firms are expected to complete the terms of the contract by December 2015.
CATS is an organization formed by pipelines and oil processing facilities that distribute gas from some of the sources in Britain’s northern sea. The facilities are responsible for over 48 million cubic metres of gas on a day to day basis. The organization’s pipelines transport over 10% of the gas produced in Britain every year. This probably makes it the largest in the European region. BP reported that the sale was purely as an investment and would not affect its use of the pipeline system.
BP’s regional president in charge of the North Sea region, Trevor Garlick made a statement regarding the contract. He said that BP has been instrumental to BP as a business. He further added that Antin Infrastructure Partners would propagate CATS to a better long term future. New ownership is expected to be good for the Northern Sea pipeline structure.
The terms of the contract dictate that Antin Infrastructure Partners should not lay off the current staff from BP and CATS. Instead, they will be transferred to the fund and continue their operations schedule normally.
Antin’s managing partner, Mark Crosbie said that the company already has plans to gear shift CATS into more growth and development. The pipeline will be subjected to additional investments. Antis also announced that Andy Hessell, BP’s former commercial operations vice president will be joining the management team.