INEOS targets gas hub at Lyon north of Shetlands

INEOS UK SNS Ltd. has agreed to acquire from Siccar Point Energy E&P a majority stake in two exploration licenses in the Shetland area which include the Lyon gas prospect.

Offshore staff

LONDON – INEOS UK SNS Ltd. has agreed to acquire from Siccar Point Energy E&P a majority stake in two exploration licenses in the Shetland area which include the Lyon gas prospect.

Assuming regulatory approvals, this would provide a second potential gas production area following its acquisition ofDONG E&P’s west of Shetland interests, which include a share of the Laggan-Tormore fields and the undeveloped Rosebank oil discovery (where Siccar Point Energy is also a partner).

The licenses are currently the most northerly on the UK continental shelf,INEOS claimed, 150 km (93 mi) north of the Shetland Islands.

Lyon is thought to potentially hold 1-3 tcf of recoverable gas. If drilling confirms this, the field could be large enough to form a new gas-hub development similar to Laggan-Tormore which have been developed via subsea production facilities and pipelines connected to the Shetland Gas Plant.

Other existing discoveries in the area such as Tobermory, Bunnehaven, and Cragganmore could also be candidates for a subsea tieback into a Lyon gas hub, INEOS added.

Geir Tuft, CEO ofINEOS Oil & Gas, said the company aimed to become a significant player in this area.

Siccar Point Energy’s CEO Jonathan Roger added: “As license operator we are excited to be moving forward in conjunction with INEOS to drill the Lyon prospect… our first exploration well.”

License interests:

License

blocks

SPE E&P Ltd.

interest before farm-out

SPE E&P Ltd.

interest after farm-out

INEOS interest after farm-out

P.1854

208/1b, 208/2, 208/3b, 217/27b, 217/28b

100.0%

33.334%

66.666%

P.1935

217/22a, 217/23a, 217/24a

100.0%

33.334%

66.666%

11/21/2017

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