INEOS to acquire significant share of key IGas North-West shale gas assets
NEOS AGREES DEAL TO BECOME UK’S THIRD BIGGEST SHALE GAS PLAYER
- INEOS has today announced it is acquiring at least a 50% interest in seven of IGas’ shale gas licences in the North West along with the option to acquire a 20% interest in two further IGas shale gas licences in the East Midlands.
- INEOS is also acquiring IGas’ interest in the shale gas licence around Grangemouth in Scotland which will give the company 100% ownership of this asset.
- This deal will move INEOS up to third place in terms of UK onshore oil and gas licences, giving it access to almost a quarter of a million acres of potential shale gas reserves.
- INEOS will pay IGas £30 million in cash and has agreed to fund a two phase work programme of up to £138 million to appraise and develop the sites.
- Gary Haywood, CEO of INEOS Upstream says, “This is a further significant step for INEOS in its plan to become the biggest player in the UK shale gas industry. We believe shale gas could revolutionise UK manufacturing and INEOS has the resources to make it happen, the skills to extract the gas safely and the vision to realise that communities must share in the rewards for it to be successful”.
INEOS has today announced a deal to acquire a 50% interest in seven IGas shale gas licences in the North West of England (the Bowland licences).
This 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)
Gary Haywood, CEO of INEOS Upstream, says “This is a great opportunity to acquire some 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. We are pleased to have agreed this deal with IGas. 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.
INEOS believes its knowledge and experience in running complex petrochemical facilities, coupled with its world class sub surface expertise, means that it will be seen by many shale gas communities as a responsible operator. INEOS has also committed to full consultation with all local communities before proceeding with any shale gas development.
Gary Haywood, CEO of INEOS Upstream says, “This is a further significant step for INEOS in its plan to become the biggest player in the UK shale gas industry. We believe shale gas could revolutionise UK manufacturing and INEOS has the resources to make it happen, the skills to extract the gas safely and the vision to realise that everyone must share in the rewards for UK shale gas to be successfully developed”.
Macquarie Capital (Europe) Limited acted as financial advisors to INEOS.
Richard Longden (INEOS) 0041 21 627 7063 or 0041 7996 26123
Mark Killick (Media Zoo) 020 7384 6980 or 07836 634449
Andrew McLachlan (Media Zoo) 020 7384 6980 or 07931 377162
Hannah Brandstaetter (Media Zoo) 020 7384 6980 or 07896 776554
Jon Fitzpatrick, Paul Weidman Luke Kanczes (Macquarie Capital) +44 20 3037 2000
Note to editors:
INEOS SHALE GAS LICENCES (CURRENT AND POST IGAS DEAL)
Licences subject to transaction