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Conoco deal would make Ineos 5th biggest producer, analyst says

Ineos confirmed that it was in talks with ConocoPhillips.

Conoco deal would make Ineos 5th biggest producer, analyst says Conoco deal would make Ineos 5th biggest producer, analyst says


 

Rolle (Switzerland), November 21 - Neftegaz.RU. Ineos confirmed that it was in talks with ConocoPhillips for the package, which includes a stake in the giant Clair field, west of Shetland.  

 

Daniel Rogers,upstream oil & gas analyst at GlobalData, said the deal could be worth about $2.4 billion. Rogers said the addition of ConocoPhillips’s assets would lift Ineos’s 2019 production from 32,000 barrels of oil equivalent (boe) per day to more than 95,000 boe.

 

It would also increase Ineos’s remaining UK reserves to 420 million boe. A portfolio that size would put the company just behind Chrysaor, which bought stakes in 10 UK North Sea fields from Shell last year.

 

Rogers said: «The sale of its UK assets would mean a total company production loss of 6% or over 75,000 boe per day for ConocoPhillips. The deal will provide Ineos AG with oil producing assets to shift it’s heavily gas weighted portfolio – currently 20% oil – to a 30% oil weightage.» 

 

 «ConocoPhillips’s divestment does not come as a surprise as speculation of the sale of its UK assets has been present for a number of years. ConocoPhillips’s UK assets (post Clair field farm down to 7.5%) are estimated to increase the Net Present Value of Ineos’s upstream portfolio by around $2.4 billion, giving a Net Present Value of roughly $4 billion of both combined assets.» 

 

Source : Neftegaz.RU