INEOS makes major $1.4 billion acquisition of US onshore oil and gas assets.
- The world is critically dependent upon oil and gas as a transitional energy source until the world can produce sufficient quantities of green energy. INEOS will play an important part in this transition ultimately focussing on hydrogen and carbon sequestration.
- INEOS Energy is set to acquire approximately 2,300 wells producing net 36,000 BOED (barrels of oil equivalent per day) in the Eagle Ford shale, from Chesapeake Energy.
- The deal marks the entry of INEOS Energy as operator into the US onshore oil & gas market.
- When completed, INEOS will hold production and exploration leases across 172,000 acres in south Texas.
INEOS Energy is entering US oil and gas production for the first time with the acquisition of a portion of Chesapeake Energy’s oil and gas assets in the Eagle Ford shale, south Texas for $1.4 billion.
The deal marks INEOS Energy’s entry as operator into the US onshore oil and gas market, as it acquires 2,300 wells, producing net 36,000 BOED.
The acquisition, which includes production and exploration leases across 172,000 net acres, is expected to complete in Q2, with an effective date of October 2022.
The addition of Chesapeake's assets and operations in south Texas is part of INEOS Energy’s strategy to build a global integrated portfolio, fit for the energy transition, offering high-quality, energy solutions to its customers.
Brian Gilvary Chairman INEOS Energy said, "The deal marks our entry into the US market and is another significant step in the INEOS Energy journey. Over the last two decades, US onshore oil and gas production has provided security of supply for the global market and competitive advantage for US industry. We believe this acquisition will help us to serve our internal and external customers today as we continue to position our business to meet the energy transition.”
INEOS Energy incorporates all of the existing INEOS Oil & Gas assets. The business is committed to meeting society's energy needs through the current energy transition. INEOS Energy is actively producing and trading oil, gas, power and carbon credits, as well as investing in LNG, Hydrogen, and Carbon Capture and Storage.
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Notes to Editors
About INEOS Energy
INEOS Energy is the energy division of INEOS, a multinational chemical company that operates in a variety of industries including petrochemicals, specialty chemicals, and oil and gas. INEOS Energy was established in 2020 to oversee the company's growing portfolio of energy-related businesses, which includes exploration and production, as well as trading of oil and gas.
The company's exploration and production activities focus on onshore and offshore oil and gas assets in the North Sea, in the UK and Denmark. In recent years, INEOS Energy has made investments in low-carbon technologies, including Carbon Capture and Storage, and hydrogen.
INEOS Energy leads a consortium that will test the world’s first cross border offshore carbon capture and storage project, later this year in the North Sea. The Denmark sector project has potential sequestration volumes of 1.5 million tonnes of CO2 per year by 2025, increasing to a potential 8 million tonnes of CO2 per year by 2030.
INEOS is also part of a consortium of eleven companies that support the large-scale deployment of carbon capture and storage (CCS) technology in Houston, Texas. The potential storage capacity in the Houston area alone could lead to capturing and safely storing up to 50 million metric tons of CO2 per year by 2030 and about 100 million metric tons by 2040.
INEOS is involved in several projects to develop demand for hydrogen, replacing existing carbon-based sources of energy, feedstocks and fuel. It expects to develop further partnerships with leading organisations involved in the development of new applications.
The company has also pledged to reduce its carbon footprint and achieve net-zero emissions by 2050.
About Chesapeake Energy
Headquartered in Oklahoma City, Chesapeake Energy Corporation is powered by dedicated and innovative employees who are focused on discovering and responsibly developing our leading positions in top U.S. oil and gas plays. With a goal to achieve net zero GHG emissions (Scope 1 and 2) by 2035, Chesapeake is committed to safely answering the call for affordable, reliable, lower carbon energy.
About Eagle Ford.
The Eagle Ford shale is a major energy resource in the United States and has been the site of significant oil and gas development and production in recent years. The shale play covers an area of approximately 26,000 square miles and stretches from the Mexican border in the south to east Texas in the north. The formation is estimated to contain more than 10 billion barrels of oil and 350 trillion cubic feet of natural gas.
The development of the Eagle Ford shale has had a significant impact on the local and national economies. The increased production of oil and gas from this formation has created jobs, increased revenue for landowners and local governments, and contributed to the United States' goal of energy independence.