Ineos In Talks to Buy Conoco UK Assets

Privately-owned upstream and petrochemical company, Ineos, has confirmed that it is in talks with ConocoPhillips about certain assets.

It follows a report in the UK Sunday Times newspaper November 18 which said that it understood Ineos had entered exclusivity over talks to buy the UK offshore assets, including a 6.5% stake in BP-operated oilfield Clair. The newspaper said that Ineos was believed to have put down a deposit in return for three months' exclusive negotiations on the package.

Ineos declined to confirm or deny the report of exclusivity, or to comment about the upstream assets under discussion and whether any of these included gas fields.

Bloomberg reported last week that ConocoPhillips was planning to invite bids for its remaining North Sea assets in a sale that some said could be worth up to $3bn; its report quoted a spokesperson for the US major saying that it had taken the decision after receiving an "unsolicited offer" for the assets, without identifying who had made this offer.

ConocoPhillips ceased its UK southern North Sea gas production activities three months ago, including its operation of the Theddlethorpe beach terminal opened more than 45 years ago.

Ineos' North Sea business increased significantly when it acquired the upstream business of Denmark's Dong (now Orsted) for $1.05bn in 2017, having previously bought assets from DEA in 2015.

Ineos moved its headquarters back to the UK from Switzerland in recent years; its majority 60% owner and founder, Jim Ratcliffe, is reported to be the UK's wealthiest person.