INEOS has agreed to purchase all of the UK North Sea gas fields owned by Russian billionaire Mikhail Fridman’s DEA Group.
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Ineos, the chemicals giant that controls Grangemouth refinery and petro-chemicals plant, has taken them on. The offshore gas fields Breagh and Clipper South provide about 8% of gas of the United Kingdom demands, but Ineon plans to increase the estimated of the wells.
Ineos is also investing in onshore unconventional gas projects in the United Kingdom, though these are proving controversial.
LetterOne was previously asked by the UK Government to sell its assets within six months following the imposition of sanctions on Russian Federation by Europe and United States over Ukraine.
INEOS chairman, Jim Ratcliffe, said, “We are pleased to acquire a strong portfolio of natural gas assets and bring on board a highly successful and experienced North Sea industry team”.
“We are exclusive open with our intentions for strategic investments in the North Sea and this acquisition is the first step towards this target”.
In a deal understood to be worth around £500m, Ineos acquired all of the fields now operated by the DEA Group.
Ineos announced plans past year to make a $1 billion investment in British shale gas exploration with an ambition to become the country’s biggest shale gas player.
“INEOS and its JV partners are huge consumers of natural gas, ethane, propane and condensates”.
Ratcliffe said the North Sea acquisition is a great entry point for the Ineos Upstream business and “they are high quality, low risk assets” and the company will continue to evaluate other opportunities in the North Sea.
Ineos also said on Sunday it has set up a new oil and gas subsidiary, Ineos Upstream in order to conduct a strategic review of the potential opportunities in the North Sea.
The transaction is subject to the European Commission’s competition clearance.
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The Grangemouth plant is the only refining and petrochemicals complex directly attached to the North Sea.
