Ineos became the third-largest player in the UK shale market after completing a major farm-out deal.
The Swiss giant, which operates the Grangemouth petrochemicals plant on the Forth, has acquired at least a 50% working interest in seven of IGas Energy’s shale gas licences.
The agreement involved an up-front payment of £30 million plus a commitment to fund a two-phase work programme worth up to £138m.
In return, Ineos has taken full control of the PEDL 133 licence covering land surrounding its Grangemouth plant and has acquired interests in the Bowland shale play in north-west England.
It also has an option to take up a 20% stake in two of IGas’s licences in the East Midlands.
IGSas chief executive Andrew Austin said: “We are delighted to have completed the transaction with Ineos and look forward to working with the Ineos team over the coming years.”
