INEOS Energy and Shell have agreed to jointly pursue new exploration and development opportunities in the deepwater Gulf of Mexico, targeting prospects located near the existing Appomattox production hub.
Under the agreement, INEOS Energy will acquire a 21% working interest in a portfolio of opportunities associated with the Appomattox area, aligning with its existing stakes in Appomattox, Rydberg, the Nashville discovery and the Mattox pipeline system. Financial terms were not disclosed.
The initial programme includes development of Shell’s Fort Sumter discovery, drilling of the Sisco exploration well and a further exploration target planned before the end of the decade. The companies said the strategy is focused on prospects within tieback distance of existing infrastructure, enabling shorter development cycles and potentially lower capital intensity.
The collaboration further strengthens the relationship between the two companies in the US Gulf, where Shell operates the Appomattox platform in Mississippi Canyon Block 392. The facility remains one of the major deepwater production hubs in the region.
INEOS Energy said the agreement forms part of its broader upstream growth strategy spanning the US Gulf, Eagle Ford, the UK Continental Shelf and offshore Denmark. The company described the approach as a disciplined expansion strategy centred on leveraging existing infrastructure and sharing exploration risk.
