INEOS has bought a majority share in a licence that will allow the company to explore for shale gas in Scotland.
The chemicals giant has signed an agreement with Reach Coal Seam Gas Limited (Reach CSG) for an 80% interest in Petroleum Exploration and Development Licence (PEDL) 162 in the Midland Valley.
It comes just two weeks after INEOS pledged to give away more than £2.5 billion to homeowners and landowners affected by its shale gas operations.
The licence covers an area of 400 km2 and is next to an area in which INEOS Upstream Limited – its new oil and gas exploration and production business – already owns a 51% stake.
Gary Haywood, INEOS Upstream CEO said: “We are keen to move quickly to evaluate the potential of this resource and determine if we can economically produce gas from this area. If we can, it will provide a local source of competitive energy and raw materials to support manufacturing jobs in Scotland.”
The deal is subject to relevant regulatory approvals and is expected to be completed within the next few weeks.