(Steve Stewart, Energy Analytics Institute, 14.Dec.2024) — Multinational chemical company INEOS Energy acquired the US Gulf of Mexico (GOM) business held by CNOOC Energy Holdings U.S.A. Inc., a US subsidiary of CNOOC International Limited.
The deal boosts INEOS’ production globally to over 90,000 barrels of oil equivalent per day (boe/d), INEOS said 14 Dec. 2024 in an official statement.
The GOM assets represent the third major investment by INEOS in the US in as many years. The CNOOC GOM assets and strategic partnerships in major US energy projects, will further complement INEOS’ existing onshore portfolio, the company said.
In specific, the GOM deal follows the 1.4 million tonnes per annum (mtpa) LNG deal completed with Sempra in Dec. 2022 and the acquisition of Chesapeake Energy’s oil and gas assets in South Texas in May 2023.
“This is a major step for us into the deepwater Gulf of Mexico, which builds on our growing energy business. INEOS Energy is all about competing in the energy transition to provide reliable, affordable energy to meet world demand as the population continues to grow. And progressing carbon storage projects,” INEOS chairman Brian Gilvary said in the statement.
Highlights:
- The third major investment by INEOS in the US, in the past three years. Capital spend on energy assets in the US now exceeds $3bn, providing a strong platform for future growth.
- Deal includes interest in two high quality deep water early production assets (Appomattox and Stampede) in the US GOM.
- Increases INEOS’ global production to over 90 thousand barrels of oil equivalent per day.
- The world remains critically dependent on oil and gas as an energy source as more renewable energy is developed. INEOS will play an important part in this transition focussing on carbon storage projects long term.
CNOOC deal portfolio
The deal includes a portfolio of non operated GOM assets built around two deep water early production assets (Appomattox and Stampede). In addition, INEOS acquires several mature assets and supporting business.
“The US is a very attractive place for INEOS Energy to invest … providing a strong platform for future growth” INEOS CEO David Bucknall said in the statement.
Dual track approach
INEOS is committed to a dual track approach, to meet society’s energy needs through the current energy transition and to investment in carbon storage. The business is actively producing and trading oil, gas, power and carbon credits, as well as investing in LNG, and Carbon Capture and Storage.
In a world first, INEOS demonstrated the feasibility of CO2 storage on the 8 Mar. 2023. The company captured CO2 from INEOS Oxide in Belgium; transported this cross-border then safely and permanently stored it in the INEOS-operated Nini field in the Danish North Sea. On the 10 Sep. 2024, DNV, verified that the stored CO2 remains safely and permanently sealed in the Nini West reservoir 1,800m below the North Sea seabed. Their verification moves the project closer towards commercialization, expected in 2025.
On 10 Dec. 2024 INEOS, the day-to-day operator, with its partners Harbour Energy and Nordsøfonden, announced a final investment decision (FID) on the first commercial phase ‘Greensand Future’ with storage operations set to begin by year end 2025 or early-2026. This decision paves the way for expected investments of more than $150mn across the Greensand CCS value chain, according to INEOS.
The acquisition of the US GOM business held by CNOOC is subject to the receipt of regulatory approvals and satisfaction of other customary closing conditions, INEOS said.
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By Steve Stewart reporting from Baton Rouge. © Energy Analytics Institute (EAI). All Rights Reserved.
