Ineos has agreed a £220million lending facility to fund its entry into the North Sea.
Geir Tuft, Ineos Breagh chief executive, said: “Ineos is a new entrant to the North Sea and this first step into the oil and gas backed lending market demonstrates support for both our strategic vision and our ambitious plans for the future.
“This first RBL facility is a landmark for Ineos and validates the quality of the assets we acquired in 2015. It is seen as a catalyst to develop future projects and continue to pursue opportunities in the North Sea.”
The five-year deal was arranged by HSBC and Lloyds with participation from Barclays, Deutsche Bank, Goldman Sachs and Bank of Montreal.
It will enable repayment of part of Ineos’ equity financing for the acquisitions from DEA UK and Fairfield Energy and will fund development capital expenditures.
Late last year, Ineos inked a deal with DEA Deutsche Erdoel AG, the German-based subsidiary of L1 Energy, for all of its UK North Sea gas fields.
The assets account of 8% of the UK’s gas – or enough gas to warm one in 10 homes.
The deal included interests in the Breagh and Clipper South gas field.
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