DONG transferring North Sea interests to INEOS

DONG Energy has agreed to sell its North Sea/Shetland area E&P interest to INEOS for $1.05 billion.

Offshore staff

COPENHAGEN, Denmark -- DONG Energy has agreed to sell its North Sea/Shetland area E&P interest to INEOS for $1.05 billion.

There could be further contingent payments of $150 million related to the Fredericia stabilization plant in Denmark and of up to $100 million for a share of theRosebank field west of Shetland, subject to development going forward.

INEOS says the transaction will make it one of the top ten players in the North Sea and the largest privately owned E&P business operating in the basin.

DONG’s North Sea field interests produced on average 100,000 boe/d last year, and the company also has around 570 MMboe of commercial and potential oil and gas reserves offshore Denmark, Norway and west of Shetland.

On completion of the deal, 440 personnel working across a spread of production, development, exploration, and appraisal assets in Denmark, Norway and UK will transfer to INEOS, and the business will be integrated into the INEOS Upstream business division.

The company will also take over DONG’s offshore decommissioning liabilities, estimated at around DKK7 billion ($1.05 billion).

Main producing interests are theOrmen Lange gas field in the Norwegian Sea; the Laggan-Tormore gas-condensate field west of Shetland; the Nini, Nini East and Cecilie field offshore Denmark and the Syd Arne oil field in the same sector, operated by Hess.

In 2015, INEOS acquired both DEA’s and Fairfield’s UK offshore portfolios and more recently BP’s operated interest in theForties Pipeline System in the central UK North Sea.

The acquisition and transfer of ownership should go through this summer, pending regulatory and other third party approvals.

5/24/2017

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