Ineos flexes muscles with fresh North Sea takeover

● Deal is focused on gas exploration west of Shetland ● Comes as BP is involved in sale of some of its assets

Chemicals giant Ineos has ramped up its presence in the North Sea with a further push into the potentially lucrative area west of Shetland.

The Grangemouth owner said it had agreed to take a majority share in two exploration licences in the Northern Gas Fields, which contain the Lyon prospect, from Siccar Point Energy E&P.

Ineos – founded by businessman Jim Ratcliffe – already has a portfolio of producing assets and discoveries west of Shetland, acquired from Dong Energy.

The chemicals group said that a “significant opportunity” now existed for it to unlock gas from the most northerly licenced area of the UK Continental Shelf (UKCS), some 150 kilometres from the Shetland Islands. Lyon is thought to contain one to three trillion cubic feet of recoverable gas.

Geir Tuft, chief executive of Ineos’ oil and gas operations, said: “Ineos intends to become a significant player in this area. This deal confirms our aim to take a leading role to develop the Northern Gas Fields using the significant infrastructure investments already made west of Shetland.

“With the purchase of the Dong E&P business earlier in the year, Ineos took over a significant portfolio of producing assets and discoveries west of Shetland. It is clear that the Northern Gas Area holds further opportunities that could help unlock the development of those discoveries. The deal with Siccar compliments our assets.”

Ineos has been branching out beyond its core interests, agreeing a deal earlier this month to acquire Swiss football club Lausanne-sport.

Fiona Legate, a senior analyst at consultancy Wood Mackenzie, said: “It’s good to see Ineos expanding its west of Shetlands position following the Dong deal earlier this year, and also moving into the exploration space. Ineos and Siccar already have a working relationship as they are both partners in the Rosebank development.”

Meanwhile, BP said that it had agreed to sell a package of its interests in the Bruce assets in the North Sea to Serica Energy. The oil major currently operates the Bruce, Keith and Rhum fields, three bridge-linked platforms and associated subsea infrastructure.

Bernard Looney of BP said: “This is an example of BP’S upstream strategy in action – refreshing our portfolio and focusing our activity on assets which will add most value over the long-term. We remain committed to the North Sea and continue to invest.” A record number of undergraduates are bidding to take part in a Scottish internship pro gramme that will see students sent all over the world next year to learn from top names in business. Entrepreneurial Scotland said it has received 1,242 applications for its 2018 Saltire Scholar Internship Programme, marking a year-on-year jump of 35 per cent. The scheme launched in 2007 with six participants and this year expects to facilitate 185 fully funded internships.