UK chemical producer INEOS Energy completed its acquisition of CNOOC’s US Gulf business for an undisclosed sum. The completion of the deal marks the third major investment by INEOS Energy in the US in the past 3 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.
Its purchase of the CNOOC business increases INEOS’s capital spend on energy assets in the region to more than $3 billion.
The deal included acquisition of minority stakes in the Shell-operated Appomattox field (21%) and the Hess-controlled Stampede development (25%), both producing assets, and increases INEOS Energy’s global production to more than 90,000 BOED. In addition, INEOS acquires several related mature assets and supporting business.
“This is a major step for us into the deepwater US Gulf, which builds on our growing energy business,” said Brian Gilvary, chairman of INEOS Energy. “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. And progressing carbon storage projects.”
The Appomattox field came on-stream in May 2019 as the first commercial development from the deepwater Norphlet trend. Production from the Appomattox is hosted by a floating production semisubmersible moored in Mississippi Canyon Block 392 in 2255 m of water.
The taps were turned on Hess’ Stampede the year prior. Located in Green Canyon blocks 468, 511, and 512, the field is estimated to hold up to 350 million BOE. The production host is a tension-leg platform capable of producing around 80,000 B/D of oil.
INEOS Energy’s entry into the US upstream market came with the $1.4 billion acquisition of a major tranche of Chesapeake Energy’s Eagle Ford Shale assets 2 years ago. The 172,000-net-acre acquisition included 2,300 wells producing net 36,000 BOED.
