INEOS completes deal to become UK’s third largest shale gas company
INEOS has today announced it has completed the deal with IGas, announced on the 10th March, making it the UKs third largest shale gas company.
The deal includes the acquisition of a 50% interest in seven IGas shale gas licences in the North West of England (the Bowland licences).
It also consists of a 60% interest in three Petroleum Exploration & Development Licences (PEDL’s 145, 193 and EXL273) and a 50% interest in a further four licences (PEDL’s 147, 184, 189 and 190).
In Scotland, INEOS will acquire IGas’ entire interest in PEDL 133 (the Grangemouth licence) which will give the company 100% ownership of this asset.
In addition, INEOS has the option to acquire 20% in two IGas East Midland shale gas licences (PEDL’s 012 and 200).
INEOS will assume operatorship of PEDL’s 133, 145 and 193 and EXL 273 in phases.
Gary Haywood, CEO of INEOS Upstream, says “We are very pleased to have completed this deal and will now work to integrate these assets into the INEOS Upstream portfolio. These are first class assets that have the potential to yield significant quantities of gas in the future. INEOS believes that an indigenous shale gas industry will transform UK manufacturing, and that we can extract the gas safely and responsibly. INEOS’s scale, asset position across the UK, US shale gas expertise, and our expertise in managing oil and gas facilities will be a great match with IGas’s existing onshore asset base, and significant exploration and production capability.”
INEOS is paying IGas a cash sum of £30 million and additionally committing to fund a two phase work programme of up to £138 million to develop the sites. IGas will reimburse its share of the work programme to INEOS upon commencement of commercial production.
Richard Longden (INEOS) 0041 21 627 7063 or 0041 7996 26123