INEOS to Acquire CNOOC Assets in US Gulf of Mexico

The INEOS Group has signed an agreement to buy China National Offshore Oil Corp.’s (CNOOC) stakes on the United States side of the Gulf of Mexico.

The acquisition consists of non-operating stakes in deepwater early-production projects Appomattox and Stampede, as well as “several mature assets and supporting business”, according to an INEOS statement. CNOOC holds a 25 percent stake in Stampede, operated by Hess Corp., and 21 percent in Appomattox, operated by INEOS’ fellow British company Shell PLC.

The new assets will raise the global production of INEOS’ energy arm to over 90,000 barrels of oil equivalent a day (boed), according to INEOS, a diversified conglomerate based in London.

“These assets in the Gulf of Mexico are the third major investment by INEOS Energy in the USA, in the past three years, following the 1.4 mtpa LNG deal completed with Sempra in December 2022 and the acquisition of Chesapeake Energy’s oil and gas assets in South Texas in May 2023”, said the statement on INEOS’ website.

INEOS Energy chief executive David Bucknall said, "The USA is a very attractive place for INEOS Energy to invest”.

“Total capital spend on energy assets in the USA now exceeds $3 billion, providing a strong platform for future growth”, Bucknall added.

CNOOC International Ltd. chair Liu Yongjie said in a separate online statement, “The transaction follows general business principles and aims to further optimize the Company’s global asset portfolio”.

The transaction between INEOS Energy and CNOOC Energy Holdings USA Inc. needs regulatory approvals and the closing of customary conditions. The companies did not disclose the price, nor gave an expected date of completion.

Earlier this year Shell put into production a subsea tie-back to the Appomattox floating production hub with an estimated peak production of 16,000 boed.

Located in the Mississippi Canyon, the Rydberg project has estimated proven and probable reserves of 38 million boe, according to Shell. It straddles leases where CNOOC has a 20 percent stake and Shell 80 percent, according to Shell.

“Rydberg will further boost production in the Norphlet Corridor at Appomattox, which is consistently one of our highest producing assets”, Rich Howe, deepwater executive vice president at Shell, said in a statement February 22.

Appomattox started up five years ago, becoming the first commercial discovery brought into production in the deepwater Norphlet formation, as announced by Shell May 23, 2019. It sits about 80 miles southeast of Louisiana’s Gulf Coast in around 7,400 feet of water, according to Shell.

In 2023 Appomattox contributed 19,000 boe to CNOOC’s net production, according to information on CNOOC’s website.

Stampede started production 2018. It has an average water depth of 3,500 feet, according to CNOOC.

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