INEOS to buy the entire Oil & Gas business from DONG Energy A/S for a headline price of $1.05 billion plus $250m contingent

INEOS to buy the entire Oil & Gas business from DONG Energy A/S for a headline price of C$1.05 billion plus $250m contingent

INEOS announced that it has agreed to acquire the Dong Oil & Gas Business from DONG Energy A/S for an unconditional payment of $1.05bn, plus a contingent payment of USD 150 million related to the Fredericia stabilisation plant and a contingent payment of up to USD 100 million subject to the development of the Rosebank field.

In acquiring the entire DONG Oil & Gas Business, the deal positions INEOS as a top ten company in the North Sea and the biggest privately owned exploration and production business operating in this energy basin.

DONG Energy’s Oil & Gas business brings with it a good mix of long life and development fields, producing an average of 100,000 boepd (in 2016) in the North Sea, with around 570 million boe of commercial and potential oil and gas reserves in Denmark, Norway and the UK (West of Shetland).

On completion, 440 people will move to INEOS, working across a portfolio of production, development, exploration and appraisal assets in Denmark, Norway and UK (West of Shetland). The business will form part of INEOS Upstream, a business division of the INEOS Group of Companies.

The strong portfolio of assets is built around three world class fields; Ormen Lange is the largest field in the DONG portfolio and the second largest gas field in Norwegian waters, Laggan- Tormore is a new gas field West of Shetland which came on-stream early 2016 and Syd Arne is a large oil field in Denmark. Along with the existing production the portfolio also features several large scale oil & gas developments in Denmark, Norway and UK (West of Shetland).

This transaction will enable INEOS to significantly expand its trading and shipping activities making it a major trader in the sector.The acquisition and transfer of ownership is targeted to complete within Q3 2017, subject to the receipt of regulatory and other third party approvals. The Business will be acquired by the INEOS Industries business division.


www.ineos.com

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