The deal positions INEOS as a top ten company in the North Sea, alongside its existing production interests, and the largest privately-owned E&P business in the basin, the company claims.
DONG’s portfolio comprises a mix of long life production and new field developments fields, with combined average production across the North Sea and Atlantic Margin last year of 100,000 boe/d.
The package also includes 570 MMboe of commercial and potential oil and gas reserves in Denmark, Norway, and the UK (west of Shetland).
INEOS entered the North Sea in 2015 by acquiring DEA’s and Fairfield’s UK offshore interests. Earlier this year it agreed to another transaction for theForties Pipeline System with BP.
Geir Tuft, CRO of INEOS Oil & Gas said: “We see lots of opportunity within this impressive portfolio and we are keen to integrate it into our growing portfolio of oil and gas businesses…”
Main producing assets are shares in the Ormen Lange gas field in the Norwegian Sea;Laggan-Tormore west of Shetland; and the Syd Arne oil field offshore Denmark.
DONG is transferring 430 personnel to INEOS, working across the company’s production, development, exploration, and appraisal assets in three national sectors.
The business, to be renamed INEOS DeNoS, will form part of INEOS Oil & Gas.
DONG confirmed the two companies had received regulatory approvals from the Danish and Norwegian authorities to the indirect transfer of the various offshore oil and gas licenses, and that INEOS will assume all decommissioning liabilities.
In accordance with the regulatory framework in Denmark and Norway, DONG also assumes a secondary liability for the decommissioning of existing Danish and Norwegian offshore facilities.