INEOS Buys All LetterOne UK North Sea Gas Fields

Petrochemicals company INEOS said it has agreed to buy all of the UK North Sea gas fields controlled by the LetterOne, the investment vehicle owned by Russian Businessman Mikhail Fridman.

‘The fields, the largest of which are Breagh and Clipper South in the Southern North Sea, provide up to 8% of the UK’s gas, enough gas to warm 1 in 10 British homes. The fields themselves are well positioned, close to INEOS’ assets in the North East and Scotland’ reads the note released by Switzerland's INEOS on Sunday. 

Jim Ratcliffe, INEOS chairman, said that the acquisition will be followed by other similar investments. INEOS is a new entrant to the North Sea.

“INEOS has been very open about its intention to make strategic investments in the North Sea and this acquisition is our first step in fulfilling this goal. It will also help our UK petrochemical assets to have ongoing access to competitive energy” Ratcliffe commented.

INEOS has also confirmed its intention to be the leading UK player in onshore gas development. 

In May 2015, INEOS reached a deal to buy shale gas licences from IGas.  

Last week, LetterOne said it is in advanced talks to acquire assets in the Norwegian North Sea.