INEOS acquires LetterOne North Sea gas assets for $750m

Swiss chemicals company INEOS is to acquire all of the UK North Sea gas fields owned by the German based DEA Deutsche Erdoel AG.

DEA Deutsche Erdoel AG is part of the LetterOne Group which is Russian billionaire, Mikhail Fridman's investment vehicle.

The fields, including Breagh and Clipper South, are positioned close to the INEOS' sites in the North East and Scotland.  The production from these fields accounts for 8% of the UK's annual gas production.  Once completed, the assets will form part of the new INEOS upstream division based in London.

The deal will result in INEOS being a new entrant to the UK's offshore gas sector but the company says it: "has extensive experience in operating chemical plants of similar complexity to these offshore platforms."  They also see themselves as becoming the UK's leading player in onshore gas development and to this end, as well as entering the offshore gas sector, have set up INEOS Upstream which is undertaking a strategic review of potential opportunities.

Jim Ratcliffe, INEOS chairman said: “The acquisition of these North Sea gas fields is a great entry point for the INEOS Upstream business.  They are high quality, low risk assets and they come with a highly experienced management team.  Whilst no decisions have yet been made, we will continue to evaluate other opportunities in the North Sea.”

For more information, help or advice please contact Andrew Davison on 0191 211 7950 or email [email protected].