INEOS acquires CNOOC’s U.S. GoM business

London-headquartered global chemical company INEOS said today that it has acquired the U.S. Gulf of Mexico business held by CNOOC Energy Holdings U.S.A. Inc., a U.S. subsidiary of China National Offshore Oil Company’s CNOOC International Limited unit.

A Reuters report cites “a person with direct knowledge of the matter who was not authorized to speak to media” as saying that INEOS paid just under $2 billion for the assets.

INEOS says that the deal includes a portfolio of non operated assets built around two deep water early production assets (Appomattox and Stampede) in the U.S. Gulf of Mexico. In addition, INEOS will acquire several mature assets and supporting business

The deal increases INEOS Energy’s production globally to over 90 thousand barrels of oil equivalent per day. These assets in the Gulf of Mexico are the third major investment by INEOS Energy in the U.S. in the past three years, following the 1.4 mtpa LNG deal completed with Sempra in December 2022 and the acquisition of Chesapeake Energy’s oil and gas assets in South Texas in May 2023.

“This is a major step for us into the deepwater Gulf of Mexico, which builds on our growing energy business,” said INEOS Energy chairman Brian Gilvary. “INEOS Energy is all about competing in the energy transition to provide reliable, affordable energy to meet world demand as the population continues to grow.”

The CNOOC Gulf of Mexico assets and strategic partnerships in major U.S. energy projects will complement INEOS’ existing onshore portfolio.

“The U.S.A. is a very attractive place for INEOS Energy to invest,” said INEOS Energy CEO David Bucknall. “This is our third deal in three years following the 1.4 mtpa LNG deal with Sempra and the acquisition of Chesapeake Energy’s oil and gas assets in South Texas. 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 says that it is committed to a dual track approach, to meet society’s energy needs through the current energy transition and to investment in carbon storage. The business is actively producing and trading oil, gas, power and carbon credits, as well as investing in LNG, and carbon capture and storage (CCS).

INEOS notes that, in a world first, it demonstrated the feasibility of CO2 storage on March 8, 2023. The company captured CO2 from INEOS Oxide in Belgium; transported this cross-border then safely and permanently stored it in the INEOS-operated Nini field in the Danish North Sea. On September 10 this year, DNV, verified that the stored CO2 remains safely and permanently sealed in the Nini West reservoir 1,800 meters below the North Sea seabed. That verification moves the project closer towards commercialization, expected next year.

The acquisition of the Gulf of Mexico business held by CNOOC Energy Holdings U.S.A. is subject to the receipt of regulatory approvals and satisfaction of other customary closing conditions.

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