Siccar Point has an attractive long-term portfolio currently weighted developments. The portfolio includes a number of earlier stage opportunities. In November, the company took the opportunity to prune the portfolio - bringing in a partner on Lyon and selling Jackdaw to a more natural pair of hands.
On 21st November, Siccar Point announced that it had farmed out UK licences P1854 and P1935 to Ineos. The blocks are located in the West of Shetlands and contain the Lyon prospect which is estimated to contain 1-3tcf of recoverable gas. Ineos now has interests in all four fields that make up the Lyon gas cluster: Lyon, Tobermory, Bunnehaven and Cragganmore - this has the potential to be a future gas hub in the area. For Ineos, the transaction builds upon the recent acquisition of the DONG portfolio as it seeks to become a major UK oil & gas player. Post the farm-out, Siccar Point will hold 33.3% in the blocks with Ineos holding 66.6%.
At the beginning of the month, Siccar Point also announced the divestment of its 26% stake in three blocks covering the Jackdaw discovery to Dyas. Jackdaw is operated by Shell (74%) and is a HPHT field. The discovery lies in the J-Block area and is subject to sanction. The project was put on hold by BG in 2014, but continues to hold substantial gas resources that is expected to be monetised in the early 2020s.
