INEOS has announced plans to give away more than £2.5 billion to those people that will be affected by its shale gas operations.
That’s 6% of its revenues, with 4% – or £250 million – going to homeowners and landowners under whose property it produces shale gas from and 2% – or £125 million – to communities living around its wells, the chemicals giant said.
The figure is six times more than what the Government offered last year – up to 1% of all revenues from production to communities as well as £100,000 per well.
Jim Ratcliffe, INEOS Chairman said it is a “game changer” for Britain’s shale gas industry, adding: “Giving 6% of revenues to those living above Britain’s shale gas developments means the rewards will be fairly shared. INEOS has also hired some of the world’s leading shale gas experts to make sure the gas can be safely extracted in an environmentally responsible way.”
The news comes after INEOS was given the go ahead by the UK Government to take a majority share (51%) in an onshore oil and gas licence block in Scotland.
Business and Energy Minister Matthew Hancock said: “It’s a real vote of confidence that INEOS recognise the potential of shale gas to transform local communities, create jobs and new economic opportunities; providing a cleaner, greener domestic energy resource.”
The Government has also confirmed developers won’t need permission to frack for oil and gas deeper than 300 metres under people’s homes.