INEOS, Shell agree to pursue new E&P developments in the deepwater Gulf
INEOS Energy and Shell Offshore Inc. say they have agreed to jointly invest in exploration and development opportunities in areas near the Appomattox platform in Mississippi Canyon Block 392.
The targeted areas will most likely be in tieback distance to the Appomattox platform.
As part of the deal, INEOS is acquiring a 21% working interest in the targeted areas, consistent with its ownership in Appomattox, Rydberg, the recent Nashville discovery, and the Mattox pipeline.
The agreement will initially focus on three exploration and production opportunities:
- Shell’s pre-FID Fort Sumter discovery
- Drilling of the Sisco exploration well
- A further exploration well targeted by the end of 2030.
INEOS says that the agreement supports its broader growth strategy, building on established positions in the US Gulf, the Eagle Ford play in South Texas, offshore Denmark and the UK Continental Shelf, while further strengthening collaboration with Shell to pursue future growth and expansion opportunities.
INEOS Energy officials say that the agreement marks another step in the company’s strategy to expand its global upstream portfolio while maintaining capital discipline and leveraging partnerships with leading operators.
David Bucknall, CEO of INEOS Energy, said: “Partnering with Shell on these opportunities is a natural step. We are focusing on areas close to existing infrastructure where we can move quickly, control costs and unlock new production. This is disciplined growth targeting exploration, shared risk, and returns. These opportunities strengthen our portfolio and support long-term energy security.”
Brian Gilvary, Chairman of INEOS Energy, said: “Having now built a strong foundation across three strong locations (US onshore and offshore, Europe offshore), we’ll continue to look for bolt-ons. There will be opportunities for us in the Gulf of Mexico around the existing infrastructure we’ve got.”
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About the Author
Bruce Beaubouef
Managing Editor
Bruce Beaubouef is Managing Editor for Offshore magazine. In that capacity, he plans and oversees content for the magazine; writes features on technologies and trends for the magazine; writes news updates for the website; creates and moderates topical webinars; and creates videos that focus on offshore oil and gas and renewable energies. Beaubouef has been in the oil and gas trade media for 25 years, starting out as Editor of Hart’s Pipeline Digest in 1998. From there, he went on to serve as Associate Editor for Pipe Line and Gas Industry for Gulf Publishing for four years before rejoining Hart Publications as Editor of PipeLine and Gas Technology in 2003. He joined Offshore magazine as Managing Editor in 2010, at that time owned by PennWell Corp. Beaubouef earned his Ph.D. at the University of Houston in 1997, and his dissertation was published in book form by Texas A&M University Press in September 2007 as The Strategic Petroleum Reserve: U.S. Energy Security and Oil Politics, 1975-2005.