DONG buys CP's Danish interests

Offshore staff

COPENHAGEN --DONG Energy is acquiring ConocoPhillips' division in Denmark for $300 million. The transaction will give the company equity in three Danish North Sea licenses containing undeveloped discoveries and further exploration potential.

Of these, the most significant is Hejre. The transaction will lift DONG's share of this license to 50%. The others are the Hejre Extension and Svane licenses.

According to the company's executive vice president, Soren Gath Hansen, operatorship of Hejre "provides us with the opportunity to have a significant influence on a concept allowing for field development via Danish infrastructure, and improves the possibility of including other discoveries in the area in which DONG Energy holds interests."

The acquisition will also boost the company's equity gas position on the Danish shelf, reducing its need for third party supplies.

3/19/2007