Ineos has announced plans to acquire a 50% interest in seven IGas shale gas licences, known as the Bowland licences, in northwestern England.

With the deal, the olefins and polyolefins giant will gain a 60% interest in three Petroleum Exploration & Development Licences (PEDL's 145, 193 and EXL273) and a 50% interest in four additional licences (PEDL's 147, 184, 189 and 190).

Undaunted by the Scottish government's calls for a moratorium, Ineos also plans to acquire IGas' entire interest in PEDL 133 (the Grangemouth licence), giving it 100% ownership of the asset bordering on its mammoth Scottish production complex.

Ineos also has the option to acquire 20% in two IGas East Midland shale gas licences (PEDL's 012 and 200).

The Swiss-based group is paying IGas a cash sum of £30 million and additionally committing to fund a two-phase work program of up to £138 million to develop the sites. IGas will reimburse its share of the work program to Ineos upon commencement of commercial production.

Gary Haywood, CEO of Ineos Upstream, called the arrangements "a great opportunity to acquire some first class assets that have the potential to yield significant quantities of gas in the future" and a "further significant step" in the company's plan to become the biggest player in the UK shale gas industry.

Haywood said Ineos has also committed to full consultation with all local communities before proceeding with any shale gas development, adding, "we believe shale gas could revolutionize UK manufacturing and Ineos has the resources to make it happen, the skills to extract the gas safely and the vision to realize that everyone must share in the rewards for UK shale gas to be successfully developed."

To underscore its commitment to let residents of areas undergoing hydraulic fracturing, or fracking, to participate in the proceeds, on Mar. 17 Ineos is going to unveil its plans for a major new Scottish shale gas community engagement scheme.