INEOS has increased its ownership of North Sea gas fields as it has acquired the 25% interest in the Clipper South gas field held by Fairfield Energy Holdings Limited.

INEOS has again moved quickly to increase its share of assets in the North Sea.

INEOS announced on 11th October its acquisition of a portfolio of natural gas assets, including the Breagh and Clipper South fields in the Southern North Sea from the DEA AG Group. Upon completion of this acquisition INEOS will own a combined interest of 75% in Clipper South.

The acquisition of these North Sea gas fields present a great entry point for the INEOS Upstream business. They are high quality, low risk assets and the deal with LetterOne earlier this month will bring with it a highly experienced offshore management team.

Rob Nevin INEOS Upstream Chairman “We are very pleased to have been able to acquire this additional share in the Clipper South Gas Field from Fairfield Energy, which is another step forward as we continue to pursue opportunities in the North Sea.”

David Peattie, CEO of Fairfield Energy, said: “I am pleased to announce the sale of our interest in Clipper South to INEOS. This sale is part of our strategy to become a decommissioning focussed company where our priority is the safe and efficient decommissioning of the Dunlin field cluster as announced this summer..”.

Ownership of Clipper South was previously held by the operator DEA UK (50%) and Fairfield (25%), which will transfer to INEOS. Bayerngas Europe Ltd holds the remaining 25%.

INEOS and its JV partners are huge consumers of natural gas, ethane, propane and condensates. North Sea oil and gas can make a significant contribution to providing these feedstocks as well as servicing our energy needs.

The transaction with Fairfield is not subject to any regulatory clearances and therefore completed today. The prior transaction with LetterOne remains subject to regulatory clearances and that process is underway.

About INEOS

INEOS will be the sole operator of the three licenses awarded today. Shale gas extraction has transformed communities in the USA where landowners own the mineral rights under their property. INEOS has developed an industry leading community benefits package that seeks to replicate this, giving communities a real stake in development. INEOS has promised to share 6% of revenues. Four percent of this would go to homeowners and landowners in the immediate vicinity of a well, and a further 2% to the wider community. Based on our estimates, a typical 10km by 10km development area would generate £375m for the community over its lifespan. Overall we anticipate that our future shale gas business could contribute over £2.5bn to communities under this scheme, having a material impact on regional economies and the standard of public services.

INEOS recognises that shale gas extraction is a controversial issue and communities have understandable questions about the potential risks and rewards. We will engage comprehensively and openly with communities at every stage to accurately convey the risks and rewards, so they can make an informed judgment about extraction. It is the view of mainstream scientific authorities such as the Royal Society and Royal Academy of Engineering that shale gas can be extracted safely with appropriate regulation, and there could be real benefits from doing so, including jobs, tax revenue, local investment and improved energy security. It is vital to have a thorough and evidence-based conversation to ensure this opportunity is considered properly.