Chemicals company INEOS has increased acquired the 25% interest in the Clipper South gas field, further increasing its ownership in North Sea fields.
INEOS had announced earlier this month its acquisition of a portfolio of natural gas assets, including the Breagh and Clipper South fields in the Southern North Sea from the DEA AG Group, part of LetterOne Group.
On completion of the latest acquisition, this time from Fairfield Energy, INEOS will own a combined interest of 75% in Clipper South.
"The acquisition of these North Sea gas fields present a great entry point for the INEOS Upstream business," said the firm. "They are high quality, low risk assets and the deal with LetterOne earlier this month will bring with it a highly experienced offshore management team."
David Peattie, CEO of Fairfield Energy, said: “I am pleased to announce the sale of our interest in Clipper South to INEOS. This sale is part of our strategy to become a decommissioning focussed company where our priority is the safe and efficient decommissioning of the Dunlin field cluster as announced this summer.”
Ownership of Clipper South was previously held by the operator DEA UK (50%) and Fairfield (25%), which will transfer to INEOS. Bayerngas Europe holds the remaining 25%.
INEOS and its JV partners are huge consumers of natural gas, ethane, propane and condensates. North Sea oil and gas can make a significant contribution to providing these feedstocks as well as servicing its energy needs, the firm said.
Production from Breagh and Clipper South account for 8% of the UK’s annual gas production, enough gas to warm 1 in 10 British homes, says INEOS.
Breagh is in the southern North Sea, 65km off the north-eastern coast of England (UKCS blocks 42/12a and 42/13a). In 2009, DEA acquired the majority holding of 70% – and in October 2013 it started production gas from new facilities at the field.