INEOS Energy Expands US Footprint with Gulf of Mexico Acquisition

INEOS Energy announced the acquisition of the Gulf of Mexico business held by CNOOC Energy Holdings U.S.A. Inc, a U.S. subsidiary of CNOOC International Limited on December 14. This marks the third major U.S. investment for INEOS Energy in the past three years, following LNG deals and the acquisition of Chesapeake Energy assets.

The acquisition includes interests in the Appomattox and Stampede deepwater production assets, along with other mature assets and supporting businesses. This deal boosts INEOS Energy's global production to over 90,000 barrels of oil equivalent per day.

"This is a significant step into the deepwater Gulf of Mexico, building upon our growing energy business," said Brian Gilvary, Chairman of INEOS Energy. "INEOS Energy is committed to providing reliable, affordable energy to meet global demand while actively pursuing carbon storage projects."

David Bucknall, CEO of INEOS Energy, emphasized the attractiveness of the U.S. market for investment. "This is our third deal in three years, and our total capital spend on energy assets in the USA now exceeds $3 billion, providing a strong platform for future growth," he stated.

Focus on Energy Transition and Carbon Storage

INEOS Energy is committed to a dual-track approach, addressing current energy needs while investing in carbon storage. The company is actively involved in oil and gas production, trading, power generation, and carbon credit trading, alongside investments in LNG and Carbon Capture and Storage (CCS).

In March 2023, INEOS demonstrated the feasibility of CO2 storage by capturing CO2 from its Belgian plant, transporting it across borders, and permanently storing it in the Nini field in the Danish North Sea. DNV, a leading risk and verification provider, recently verified the safe and permanent storage of the CO2, bringing the project closer to commercialization, expected next year.

Last week, INEOS, in partnership with Harbour Energy and Nordsøfonden, announced the Final Investment Decision (FID) on the first commercial phase of the Greensand CCS project, with storage operations set to begin in late 2025/early 2026. This decision signals expected investments exceeding $150 million across the Greensand CCS value chain.

Strategic Importance of the Acquisition

The CNOOC Gulf of Mexico assets and strategic U.S. energy partnerships will further enhance INEOS' existing onshore portfolio. The completion of the acquisition is contingent upon receiving necessary approvals from regulatory bodies and fulfilling other standard closing requirements. This acquisition underscores INEOS Energy's commitment to expanding its global presence and playing a crucial role in the energy transition by providing reliable energy sources while actively investing in carbon capture and storage solutions.