INEOS Energy has signed an agreement with Shell Offshore, a subsidiary of Shell, to co-invest in oil and gas exploration and development near the Appomattox platform in the Gulf of Mexico (GoM).
Under the terms of the agreement, INEOS will acquire a 21% operating interest in certain assets located within mooring distance of the platform. Financial details of the transaction have not been disclosed.
The move aligns with INEOS’s current stakes in Appomattox, Rydberg, the Nashville discovery made with Shell last December and the Mattox pipeline.
The partnership will prioritize three major projects from the outset, including Shell’s Fort Sumter discovery, which is in the pre-final investment decision stage.
The other two projects are the Sisco exploration well and the drilling of an additional exploration well scheduled for completion by the end of this decade.
The initiative aims to further develop areas close to the Appomattox platform, allowing the use of existing pipeline infrastructure to facilitate production.
INEOS Energy has stated that its current strategy includes expanding its upstream portfolio by leveraging positions on the UK continental shelf, offshore Denmark, Eagle Ford South Texas and the Government of Mexico.
INEOS Energy chief executive David Bucknall 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 about disciplined growth focused on shared exploration, risk and returns. These projects strengthen our portfolio and support long-term energy security.”
The agreement aims to optimize production from the Appomattox platform by integrating initial production assets with established facilities.
Both companies plan to work together to extract more value from the host platform while maintaining capital discipline in their expansion efforts.
The current agreement marks a continuation of INEOS Energy’s efforts to expand its upstream interests and collaborate with operators such as Shell on future development opportunities.
Last month, Shell agreed to acquire ARC Resources, a Toronto Stock Exchange-listed energy company operating in Canada’s Montney shale basin, in a cash and stock deal valued at $16.4 billion (£12.09 billion).
“INEOS and Shell to develop oil and gas prospects in the Gulf of Mexico” was created and originally published by Offshore Technology, a brand owned by GlobalData.
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