Chemicals and oil merchandise group Ineos' subsidiary Ineos UK SNS has agreed to accumulate a majority stake in two West of Shetland exploration licenses from Siccar Point Energy.
The space, known as the Northern Gas Fields, accommodates the estimated 1-Three Tcf recoverable Lyon prospect, which might be large enough to type a brand new gasoline hub in what Ineos says is essentially the most northly licensed space of the UK Continental Shelf, 150km north of the Shetland Islands.
The deal, seeing Ineos take 66.6% in licenses P.1854 and P.1935, with Siccar retaining the remaining and operatorship, follows Ineos' acquisition of stakes in producing belongings and discoveries West of Shetland, from DONG E&P.
Siccar Point will stay operator. Ineos says Lyon is a “materials prospect… If profitable it might be massive sufficient to type a brand new gas-hub growth just like the Laggan-Tormore fields, which have been developed with subsea infrastructure and pipelines to the Shetland Gas Plant.
“Existing gasoline discoveries within the Lyon space corresponding to Tobermory, Bunnehaven and Cragganmore would all be appropriate tie-back candidates right into a Lyon gasoline hub.
The deal follows a string of offers within the North Sea, seeing majors farm out to smaller operators. Read extra right here.
Fiona Legate, Senior Analyst North Sea Upstream, at Wood Mackenzie, says: “It’s good to see Ineos increasing its West of Shetlands place following the DONG deal earlier this 12 months, and likewise shifting into the exploration house.
“Ineos and Siccar Point Energy have already got a working relationship as they’re each companions within the Rosebank growth.
“Ineo's manufacturing within the UK proper now could be dominated by mature Southern Gas Basin belongings, this manufacturing base was boosted by the DONG deal which supplied manufacturing from the Greater Laggan Area fields. Exploring might present Ineos with their subsequent development undertaking if a discovery is made.”
Geir Tuft Ineos Oil & Gas CEO mentioned: “This deal confirms our intention to take a number one position to develop the Northern Gas Fields utilizing the numerous infrastructure investments already made West of Shetland.”
“With the acquisition of the DONG E&P enterprise earlier within the 12 months, INEOS took over a big portfolio of manufacturing belongings and discoveries West of Shetland. It is obvious that the Northern Gas Area holds additional alternatives that would assist unlock the event of these discoveries. The take care of Siccar compliments our belongings.”
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Siccar Point Energy’s CEO Jonathan Roger mentioned: “As license operator we’re excited to be shifting ahead along with Ineos to drill the Lyon prospect. This represents a chance to unlock the fabric gasoline potential of essentially the most northerly licenced space of the UKCS. We stay up for working with Ineos on this new exploration partnership and to working our first exploration properly.”
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