MOSCOW (MRC) -- Ineos has announced a deal to acquire a 50% interest in seven IGas shale gas licences in the North West of England (the Bowland licences), reported the company on its site.
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 Ienos 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 GBP30 million and additionally committing to fund a two phase work programme of up to GBP138 million to develop the sites. IGas will reimburse its share of the work programme to Ineos upon commencement of commercial production.
Gary Haywood also adds, "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".
As MRC wrote before, in october 2014, Ineos Upstream Limited signed an agreement with Reach Coal Seam Gas Limited (Reach CSG) to acquire an 80% interest in Petroleum Exploration and Development Licence (PEDL) 162, in the Midland Valley of Scotland.
Ineos Group Limited is a privately owned multinational chemicals company consisting of 15 standalone business units, headquartered in Rolle, Switzerland and with its registered office in Lyndhurst, United Kingdom. It is the fourth largest chemicals company in the world measured by revenues (after BASF, Dow Chemical and LyondellBasell) and the largest privately owned company in the United Kingdom.
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