Photo: INEOS
London-headquartered global chemical company INEOS announced today the acquisition of the U.S. Gulf of Mexico business held by CNOOC Energy Holdings U.S.A. Inc., a subsidiary of China National Offshore Oil Company’s CNOOC International Limited unit.
According to a Reuters report, INEOS paid just under $2 billion for the assets. The deal includes a portfolio of non-operated assets centered around two deep-water early production assets (Appomattox and Stampede) in the U.S. Gulf of Mexico, as well as several mature assets and supporting businesses.
With this acquisition, INEOS Energy’s global production increases to over 90 thousand barrels of oil equivalent per day. These assets mark INEOS Energy’s third major investment in the U.S. in the past three years, following deals with Sempra for LNG and the acquisition of Chesapeake Energy’s oil and gas assets in South Texas.
INEOS Energy chairman Brian Gilvary stated, “This is a major step for us into the deepwater Gulf of Mexico, which builds on our growing energy business. INEOS Energy is committed to providing reliable, affordable energy to meet world demand as the population continues to grow.”
INEOS Energy CEO David Bucknall added, “The U.S.A. is a very attractive place for INEOS Energy to invest. Total capital spend on energy assets in the U.S.A. now exceeds $3 billion, providing a strong platform for future growth.”
Carbon Capture and Storage, Too
INEOS Energy is committed to meeting society’s energy needs through the current energy transition and investing in carbon storage. The business is actively involved in producing and trading oil, gas, power, and carbon credits, as well as investing in LNG and carbon capture and storage (CCS).
INEOS successfully demonstrated the feasibility of CO2 storage on March 8, 2023, by capturing CO2 from INEOS Oxide in Belgium, transporting it cross-border, and safely storing it in the INEOS-operated Nini field in the Danish North Sea. This project moves closer towards commercialization, expected next year.
The acquisition of CNOOC Energy Holdings U.S.A.’s Gulf of Mexico business is subject to regulatory approvals and other customary closing conditions.