December 16, 2024 [INEOS]- INEOS Energy has today announced the acquisition of the Gulf of Mexico business held by CNOOC Energy Holdings U.S.A. Inc., a U.S. subsidiary of CNOOC International Limited (“CNOOC”).

The deal increases INEOS Energy’s production globally to over 90 thousand barrels of oil equivalent per day. These assets in the Gulf of Mexico are the third major investment by INEOS Energy in the USA, in the past three years, following the 1.4 mtpa LNG deal completed with Sempra in December 2022 and the acquisition of Chesapeake Energy’s oil and gas assets in South Texas in May 2023.

The deal includes a portfolio of non operated assets built around two deep water early production assets (Appomattox and Stampede) in the Gulf of Mexico. In addition, INEOS acquires several mature assets and supporting business.

Brian Gilvary Chairman of INEOS Energy said: “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.”

The CNOOC Gulf of Mexico assets and strategic partnerships in major U.S. energy projects, will further complement INEOS’ existing onshore portfolio.

David Bucknall CEO INEOS Energy said,”The USA is a very attractive place for INEOS Energy to invest. This is our third deal in three years following the 1.4 mtpa LNG deal with Sempra and the acquisition of Chesapeake Energy’s oil and gas assets in South Texas. Total capital spend on energy assets in the USA now exceeds $3billion, providing a strong platform for future growth.”

INEOS Energy 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^th March 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^th September this year world-leading provider of risk, verification and standardization services, DNV, verified that the stored CO₂ remains safely and permanently sealed in the Nini West reservoir 1,800 metres below the North Sea seabed. Their verification moves the project closer towards commercialisation, expected next year.

Last week, (10^th December) INEOS, the day-to-day operator, with its partners Harbour Energy and Nordsofonden, announced it had made a Final Investment Decision (FID) on the first commercial phase ‘Greensand Future’ with storage operations set to begin at the end of 2025/early 2026. This decision paves the way for expected investments of more than $150 million across the Greensand CCS value chain.

The acquisition of the Gulf of Mexico business held by CNOOC Energy Holdings U.S.A. is subject to the receipt of regulatory approvals and satisfaction of other customary closing conditions.