In a move to align its portfolio with its global energy transition strategy, INEOS has struck a deal to sell its oil and gas interests in Norway to PGNiG Upstream Norway for US$615M
Subject to approval by the Norwegian Ministry of Petroleum and Energy and the Norwegian Ministry of Finance, the deal includes all INEOS Oil & Gas interests in production, licences, fields, facilities and pipelines, on the Norwegian continental shelf (NCS). Approval is expected later this year.
INEOS E&P Norge AS produces around 33,000 barrels of oil equivalent (boe) per day from the Norwegian Sea. Its business holds 22 offshore licences, of which six are operated, and has equity in the Nyhamna Terminal (8%).
“This represents another positive step in the INEOS Energy journey,” said INEOS Energy executive chairman Brian Gilvary. “The deal allows us to monetise a non-operated, predominantly gas portfolio at an attractive price compared to our hold value. This will further balance our portfolio of oil and gas and open up new opportunities to reinvest further into the energy transition.”
The sale follows on the wake of INEOS Energy’s US$150M acquisition of Hess Denmark ApS, consolidating its control over the Syd Arne oil field. The acquisition covers 61.5% of the Hess-operated Syd Arne oil field, complementing the 36.8% share INEOS already holds and 4.8% in the INEOS-operated Solsort field.
INEOS currently operates the Siri field area in Denmark. By becoming the operator of Syd Arne INEOS expects to unlock operational and cost synergies between the two assets.
In a statement, the company said it plans “to add further value through organic growth projects which will further extend the life of the asset within the context of the Danish Government’s decision to cease production on the Danish shelf by 2050.”
Old wells play role in carbon-capture storage
Of particular interest in the clean-energy transition is the use of the INEOS-operated Siri area for carbon-capture storage.
INEOS Oil & Gas Denmark is leading the Project Greensand Consortium to safely and cost effectively permanently store up to 8M tonnes of CO2 per annum, in the INEOS-operated Siri area, when the fields have ceased production.
“The Greensand Project in Denmark will make a significant contribution to our understanding and growth of carbon storage technology, while supporting Denmark’s wider CO2 emissions reduction targets for 2030 and beyond,” said Mr Gilvary.
Others in the consortium are offshore driller Maersk Drilling and independent energy company Wintershall Dea.
Maersk Drilling expects Greensand will provide important lessons about how offshore drilling rigs can be used to repurpose existing oil wells for CO2 injection and handle well modifications during the injection period.
DNV certified Siri field’s suitability of the CO2 injection well design and well construction process.
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