Licences sold to energy giant

Siccar Point Energy said yesterday it would sell majority interests in two exploration licences in the west of Shetland area to energy giant Ineos.

Ineos said it intended to become a “significant player” in the area, having previously focused much of its attention on the southern North Sea.

The deal will give Ineos 66.6% interests in licences P.1854 and P.1935, 90miles north of Shetland.

Siccar Point acquired 100% operated interests in the licences from OMV in January 2017.

The P.1854 licence contains the Lyon prospect, thought to contain around 3trillion cubic feet of recoverable gas.

Siccar Point and Ineos believe the prospect could be large enough to form a new gas-hub development similar to Total’s Laggan-Tormore fields.

The Tobermory, Bunnehaven

“A leading role to develop the northern gas fields”

and Cragganmore fields would all be suitable tie-back candidates. Ineo has been expanding its North Sea footprint through acquisitions in recent years.

Ineos announced its arrival in the basin in 2015 when it bought stakes in several fields, including Breagh and Clipper South, from Dea.

It completed a deal to buy Dong Energy’s oil and gas business at the end of September. The transaction gave it a large package of North Sea assets, including stakes in Laggan Tormore and the Edradour-Glenlivet fields and Chevron’s Rosebank discovery.

Last month, Ineos wrapped up the acquisition of the Forties pipeline system from BP.

Ineos Oil & Gas chief executive Geir Tuft said the latest deal showed the firm aims to “take a leading role to develop the northern gas fields”.