INEOS, Shell to develop Gulf of Mexico oil and gas prospects

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 arrangement, INEOS will acquire a 21% working interest in certain assets located within tie-back distance of the platform. The financial details of the transaction have not been disclosed.

The move aligns with INEOS’ current stakes in Appomattox, Rydberg, the Nashville discovery made with Shell last December and the Mattox pipeline.

The partnership will prioritise three main projects at 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 targeted for completion by the end of this decade.

The initiative aims to further develop areas within tieback proximity to the Appomattox platform, enabling the use of existing pipeline infrastructure to facilitate production.

INEOS Energy has stated that its ongoing strategy includes expanding its upstream portfolio by building on positions in the UK Continental Shelf, offshore Denmark, Eagle Ford South Texas and the GoM.

INEOS Energy CEO 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 disciplined growth targeting exploration, shared risk and returns. These projects strengthen our portfolio and support long-term energy security.”

The agreement aims to optimise production from the Appomattox platform by integrating early production assets with established facilities.

Both companies plan to work together to extract further value from the host platform while maintaining capital discipline in their expansion efforts.

The current deal marks a continuation of INEOS Energy’s efforts to extend 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 the Montney shale basin in Canada, in a cash and stock deal valued at $16.4bn (£12.09bn).

"INEOS, Shell to develop Gulf of Mexico oil and gas prospects" was originally created and published by Offshore Technology, a GlobalData owned brand.

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