Ineos acquires North Sea assets
12 Oct 2015
Oil and gas exploration and production firm Ineos Upstream has acquired all UK North Sea gas fields owned by Germany-based DEA Group.
The deal includes the Breagh and Clipper South fields in the Southern North Sea, which account for 8% of the UK’s annual gas production capacity.
During November last year, Ineos Upstream, a newly-developed subsidiary of Ineos, advertised a number of senior offshore production roles on its website, making clear its intention to expand into the North Sea.
Ineos has been very open about its intention to make strategic investments in the North Sea
Ineos chairman Jim Ratcliffe
“Ineos has been very open about its intention to make strategic investments in the North Sea and this acquisition is our first step in fulfilling this goal,” said Ineos chairman Jim Ratcliffe.
”It will also help our UK petrochemical assets to have ongoing access to competitive energy,” he added.
According to Ineos, the acquisition could represent a significant contribution to its European energy and feedstock strategy.
“Ineos and its JV (joint venture) partners are huge consumers of natural gas, ethane, propane and condensates. North Sea oil and gas can make a significant contribution to providing these feedstocks as well as servicing our energy needs,” said Rob Nevin, chairman of Ineos Upstream.
Meanwhile, Ineos - which operates the Grangemouth refinery and petrochemical complex in Scotland - has been building its portfolio of shale oil and gas assets.
Earlier this year it acquired at least a 50% interest in seven IGas shale licences in the North West of England.
The company was also awarded three shale gas exploration licences by the UK government in August. It said it will give away over £2.5 billion of its shale gas revenues to homeowners, landowners and communities close to its fracking wells.
