Ineos awarded license for onshore oil and gas exploration
DECC has given the go ahead to major chemicals giant Ineos to take a majority share in an onshore oil and gas licence block in Scotland by taking over BG’s interest (51%).
The Department of Energy and Climate Change (DECC) has given the go ahead to major chemicals giant Ineos to take a majority share in an onshore oil and gas licence block in Scotland by taking over BG’s interest (51%). The other licensee, Dart is the operator in the block next to the Firth of Forth.
Like the rest of the shale industry, Ineos believe it’s important that the local community benefits from shale gas. Ineos will give 6% of production revenue to landowners and communities, split 4% and 2% respectively. It’s not unusual for energy companies to make payments to communities; people local to wind farms receive payments too.
Business and Energy Minister Matthew Hancock said:
“It’s very welcome news that Ineos want to explore for shale gas. We have a huge amount of natural gas trapped deep beneath the ground which could be used to heat our homes, and reduce our reliance on expensive foreign imports.
“It’s a real vote of confidence that Ineos recognise the potential of shale gas to transform local communities, create jobs and new economic opportunities; providing a cleaner, greener domestic energy resource”.
Notes to editors:
Dart is the operator of on PEDL 133. Ineos are going to be a non-operating partner – they share the costs and benefits of the license and have a say as to what happens on the license but operations are only undertaken by the operator (Dart). Ineos haven’t applied to DECC for operatorship.