Operations will run INEOS’s 95 MBOEPD

INEOS, Britain’s largest closely held company, announced the formation of six new oil and gas related businesses today as it follows up on its expansion in the oil and gas E&P sector.

INEOS has built a substantial presence in the North Sea, with production of about 95 MBOEPD and reserves of more than 3 Tcfe, and is now the largest private E&P operating in northwest Europe.

The company established this position primarily through the purchase of DONG Energy’s oil and gas assets in May 2017 for $1.3 billion. This brought the company assets including the Ormen Lange, the second largest gas field in Norwegian waters, Laggan-Tormore, a new gas field West of Shetland which came on-stream early 2016, and Syd Arne, an oil field in Denmark.

Dong Energy oil and gas assets

Taking shale revolution to the UK

The company is also the largest holder of shale gas licenses in the UK, and has expressed its intention to bring the U.S. shale revolution to the UK.

According to the British Geological Survey, the Bowland-Hodder shale in northern England holds 1,300 Tcf of gas, so the potential for significant production is present. The UK has established the Office of Unconventional Gas and Oil to develop the shale industry in the country. Some European governments have expressed national policy and programs to reduce fossil fuels and emphasize expansion of renewable energy, but Ineos has taken a strong stand in favor of developing the unconventionals in its asset base. Reuters recently reported that the company is seeking a judicial review of the Scottish government’s ban on fracing onshore unconventional oil and gas resources. The 2017 ban flew in the face of expert reports which concluded that shale gas could be produced safely, Ineos said.

INEOS will break its beefed up oil and gas operations into six subsidiaries, each with a different focus.

  • INEOS Oil & Gas Denmark consists of operated and non-operated oil and gas assets located in Denmark. The business is headed by Flemming Horn Nielsen as its CEO with offices and operations in Esbjerg and Gentofte, Denmark.
  • INEOS Oil & Gas Norway consists of the assets located in Norway. The business is led by Sebastian Koks Andreassen as CEO with its office located in Stavanger, Norway.
  • INEOS Oil & Gas UK consists of the INEOS Breagh assets and all assets mainly in the West of Shetlands acquired from DONG Energy. The business is led by David Brooks as CEO, and is based in London, UK.
  • INEOS FPS consists of the Forties Pipeline System, the Kinneil terminal and gas processing plant, the Dalmeny terminal, sites at Aberdeen, the Forties Unity Platform and associated infrastructure. This strategic UK asset that delivers almost 40% of the UK’s North Sea oil and gas is led by Andrew Gardner as CEO, with operations in Falkirk and Aberdeen, UK.
  • INEOS Shale is focused on onshore gas development. It is the biggest player in the UK onshore shale gas sector with access to over 1.3 million acres of prime shale exploration areas in England and Scotland. Ron Coyle is the CEO, and the business is based in London, UK.
  • INEOS Upstream Services is a new venture that will provide a broad range of high quality upstream services to INEOS and the wider upstream market. The fleet currently consists of onshore seismic surveying equipment and onshore well stimulation and well testing equipment. The business is led by Geoff Holmes as COO and is located in London, UK.

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