INEOS completed the purchase of the North Sea natural gas assets of DEA Deutsche Erdoel AG, which is owned by L1 Energy . The platforms, infrastructure and the highly skilled team that runs them will form part of the new INEOS Breagh business division that will be based in London.

Geir Tuft, CEO of INEOS Breagh says, “We are pleased to have completed the deal to acquire this strong portfolio of natural gas assets and bring on board a highly successful and experienced North Sea industry team.”

The transaction includes interests in the Breagh and Clipper South gas fields in the Southern North Sea. The annual production from the fields acquired in this deal account for 8% of the UK’s annual gas production, enough gas to warm 1 in 10 British homes.

INEOS has recently announced its intention to become the leading UK player in onshore gas development and, as part of the company's growing interest in energy production, is now evaluating additional opportunities offshore.

As part of the company’s ongoing strategic business planning, INEOS AG has set up a new oil and gas subsidiary and is working with a number of top class North Sea oil and gas professionals. This group will continue to review potential opportunities in the North Sea to assess their suitability in the development of the business.

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.

About DEA

DEA Deutsche Erdoel AG is an international exploration and production company for oil and gas with headquarters in Hamburg, Germany. In exploring for and producing oil and gas, we rely on state-of-the-art drilling and production technology and the extensive know-how gained during our 116-year corporate history.