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Ineos buys up DONG Energy’s oil and gas business
Ineos has acquired Danish company DONG Energy’s entire oil and gas business for $1.05bn, plus $250mn contingent.* The deal makes Ineos one of the top 10 producers in the North Sea and also the largest private company in the sector. The move marks DONG Energy’s final transition to ‘a leading, pure play renewables company’, according to CEO Henrik Poulsen.
The acquired business has a strong portfolio of long life assets, producing 100,000 boe/d in 2016 and with around 570mn boe of commercial and potential oil and gas reserves across the Danish, Norwegian and UK continental shelves. The portfolio is built around three world class fields – Ormen Lange, the largest field in the DONG portfolio and the second largest gas field in Norwegian waters; Laggan-Tormore, a new gas field West of Shetland which came onstream early 2016; and Syd Arne, a large oil field in Denmark.
INEOS will also take over decommissioning liabilities of approximately $1.05bn. The deal follows Ineos’ recently announced plan to acquire the Forties pipeline system from BP, pending regulatory and third party approvals (see Petroleum Review, May 2017).
*A contingent payment of $150mn relates to the Fredericia stabilisation plant and a contingent payment of up to $100mn is subject to the development of the Rosebank field.
News Item details
Journal title: Petroleum Review
Subjects: Economics, business and commerce, Commercial, Oil and gas extraction, Reserves
