INEOS Energy to acquire CNOOC Gulf assets to expand global production and support energy transition

In a pivotal move, CNOOC Limited, a major player in the global oil and gas industry, has agreed to sell its U.S. Gulf of Mexico assets to INEOS Energy. The transaction, initiated through CNOOC Energy Holdings U.S.A. Inc., a subsidiary of CNOOC International Ltd., reflects a strategic shift in the company’s global portfolio.

The sale includes non-operating stakes in several key oil and gas projects, such as the Appomattox and Stampede fields, located in the resource-rich Gulf of Mexico. These deepwater production assets mark a significant addition to INEOS Energy’s growing portfolio. The deal highlights the increasing focus on optimising energy operations while navigating the ongoing energy transition.

Liu Yongjie, Chairman of CNOOC International Ltd., noted that the agreement aligns with the company’s long-term strategy to streamline global operations and maximise asset efficiency. Regulatory approval for the deal is still pending, but both parties are committed to ensuring a seamless transition for these critical assets.

What This Acquisition Means for INEOS Energy

The acquisition of CNOOC’s Gulf of Mexico assets represents INEOS Energy’s third major U.S. energy deal in three years. Previously, INEOS signed a 1.4 million tonnes per annum LNG supply agreement with Sempra in 2022 and acquired Chesapeake Energy’s South Texas assets in 2023. Together, these deals have pushed the company’s total capital expenditure in U.S. energy assets to over $3 billion, solidifying its presence in the region.

Brian Gilvary, Chairman of INEOS Energy, emphasised the significance of this acquisition. He described it as a strategic step into deepwater production, building on the company’s strong foundation in energy trading, oil and gas exploration, and carbon storage initiatives. With this transaction, INEOS Energy’s global output now exceeds 90,000 barrels of oil equivalent per day, further enhancing its role as a competitive player in the energy sector.

Gilvary explained that the deal aligns with INEOS Energy’s dual strategy: meeting current energy demands while investing in cleaner technologies. He stated that the world’s dependency on oil and gas will persist during the transition to renewable energy, and that the company’s focus on carbon storage reflects its commitment to balancing immediate energy needs with long-term sustainability goals.

Gulf of Mexico Assets: A Strategic Addition

The Gulf of Mexico has long been regarded as a critical hub for energy production due to its abundant resources and advanced infrastructure. The assets acquired from CNOOC include stakes in both early-production fields like Appomattox and Stampede, as well as mature projects that ensure steady output.

These deepwater production assets provide INEOS Energy with access to significant reserves while diversifying its existing portfolio. Additionally, the Gulf’s established infrastructure supports lower operational costs and offers growth opportunities in one of the world’s most dynamic energy markets.

David Bucknall, CEO of INEOS Energy, underscored the importance of the U.S. as a prime destination for investment. He highlighted that the deal complements INEOS’ previous acquisitions, enhancing its operational capabilities in both onshore and offshore markets. Bucknall reiterated the company’s commitment to energy portfolio optimisation, which integrates traditional oil and gas production with renewable energy advancements and carbon capture projects.

A Commitment to Energy Transition

While this acquisition reinforces INEOS Energy’s standing in traditional oil and gas production, it also strengthens its position as a leader in the global energy transition. Over the past year, the company has achieved notable milestones in carbon storage initiatives, including the world’s first cross-border CO₂ storage project.

In March 2023, INEOS demonstrated its ability to capture CO₂ emissions from its Belgian facilities and permanently store them in Denmark’s Nini field, a breakthrough verified by global certification leader DNV. This success has paved the way for future projects, such as the Greensand CCS initiative, which aims to begin large-scale storage operations by 2025.

INEOS Energy’s investments in carbon capture technology underscore its commitment to reducing emissions while maintaining reliable energy supplies. The Gulf of Mexico acquisition provides additional resources to support these efforts, aligning with its broader strategy of integrating traditional and low-carbon energy solutions.

Awaiting Regulatory Approval

The transaction, valued at an undisclosed amount, is still subject to regulatory approval and the satisfaction of customary closing conditions. However, both CNOOC and INEOS Energy have expressed confidence in the deal’s completion.

For CNOOC, the sale represents a key step in its strategy to optimise its global portfolio and redirect resources to higher-priority projects. For INEOS Energy, the acquisition enhances its capacity to compete in both the traditional energy market and emerging sectors such as carbon capture and storage.

The acquisition also highlights a growing trend in the energy industry: the balance between maintaining conventional oil and gas operations while investing in cleaner, more sustainable technologies. As INEOS Energy integrates these Gulf of Mexico assets, it will continue to build on its reputation as a forward-thinking energy company that combines production expertise with environmental responsibility.