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INEOS cluster becomes one of the most exciting prospects in British offshore waters

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Oilfield Technology,

INEOS UK SNS Limited has agreed to take a majority share in two exploration licenses in the Northern Gas Fields West of Shetland which contains the Lyon prospect, from Siccar Point Energy E&P Limited.

The deal complements the significant INEOS portfolio of producing assets and discoveries West of Shetland, recently acquired from DONG E&P.

Completion of the transaction remains subject to customary regulatory consents.

A significant opportunity now exists for INEOS to unlock gas from the most northerly licenced area of the UKCS, 150 km north of the Shetland Islands.

In particular Lyon, a material prospect that is thought to contain of 1 - 3 trillion ft3 recoverable gas. If successful it could be large enough to form a new gas-hub development similar to the Laggan-Tormore fields, which have been developed with sub-sea infrastructure and pipelines to the Shetland Gas Plant. Existing gas discoveries in the Lyon area such as Tobermory, Bunnehaven and Cragganmore would all be suitable tie-back candidates into a Lyon gas hub.

Geir Tuft INEOS Oil & Gas CEO said “INEOS intends to become a significant player in this area. This deal confirms our aim to take a leading role to develop the Northern Gas Fields using the significant infrastructure investments already made West of Shetland.”

“With the purchase of the DONG E&P business earlier in the year, INEOS took over a significant portfolio of producing assets and discoveries West of Shetland. It is clear that the Northern Gas Area holds further opportunities that could help unlock the development of those discoveries. The deal with Siccar compliments our assets.”

Siccar Point Energy’s CEO Jonathan Roger commented “As licence operator we are excited to be moving forward in conjunction with INEOS to drill the Lyon prospect. This represents an opportunity to unlock the material gas potential of the most northerly licenced area of the UKCS. We look forward to working with INEOS in this new exploration partnership and to operating our first exploration well.”

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