French energy group Engie has sold its entire onshore Petroleum Exploration and Development Licence interests in the United Kingdom to INEOS Shale, the onshore division of INEOS Upstream.
The transaction, whose amount was not disclosed, includes minority interests in 15 licences, 7 of which INEOS holds an existing interest in. The remaining 8 licences complement INEOS’s existing licence interests in Yorkshire, Cheshire and the East Midlands. Three of the licences are operated by INEOS, eight by IGas Energy and four by Cuadrilla. They increase the total acreage held by INEOS under licence to more than 1.2 million acres (nearly 4,900 km²).
The sale is part of Engie's strategy to focus on energy infrastructures and services, especially in a context of low energy prices. Shale gas exploration in the United Kingdom has also been limited due to regulatory hurdles and public opposition.