THE decision by Ineos to commit up to $1.3 billion (£1bn) to buy a North Sea portfolio from Dong Energy provides further evidence some see value in North Sea assets that others are losing interest in.
Dong decided to bail out of oil and gas because it felt it could generate better returns from a renewables business that has stakes in eight wind operational wind farms off the UK.
Ineos, by contrast, appears increasingly convinced that investing in North Sea oil and gas assets makes sound commercial sense for a business which majors on producing chemicals and operates the Grangemouth refinery.
The deal is the fourth the company has agreed in the North Sea since moving into the area in 2015 and comes with a notable change of emphasis.
While Ineos seemed motivated initially by the desire to secure feedstock for Grangemouth it now appears keen to operate a more broadly-based North Sea oil and gas company.
Following other deals involving independents buying assets from Shell and BP, such talk will boost hopes recovery may be on the way in the North Sea after a brutal downturn triggered by the slump in oil prices since 2014.
But lots of North Sea assets are for sale.
While prices are said to be much lower than they were in the boom, deals are not easy to get done.
Ineos looks to have driven a hard bargain.
One analyst noted it appeared to be acquiring resources at around $2.30 per barrel.
A price of $2bn was touted for the portfolio when Dong put it on sale last year.
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