North Sea Asset Acquisitions
INEOS wished to acquire a significant operated producing position in the North Sea. This was part of an overall strategy for INEOS, one of the UK’s largest energy users, to build an upstream oil & gas production business to complement its established refining and chemicals divisions.
SLR’s role was to identify acquisition opportunities which would satisfy the client’s overall objectives, including; to determine the underlying technical and commercial basis for each opportunity; advise on the acquisition of a significant operated position in the North Sea; and evaluate the seller’s case and constructed independent cases for existing production and growth/future investment cases.
Our team provided subsurface, drilling, commercial and economic support on facilities, operations, legal and tax as well as reviewed upstream commercial agreements on matters such as tie in agreements, transportation and processing and Joint Operating Agreements.
As a result, INEOS was successful in making two significant corporate acquisitions: DEA UK which included the Breagh and Clipper South for $750 million and Fairfield Energy’s equity in Clipper South. This moved them immediately into an operating position where their assets accounted for 8% of UK gas production.