DONG strengthens position in Danish field

DONG Energy has agreed to acquire from Noreco around 2.4% of the Hess-operated South Arne field offshore Denmark.

Offshore staff

COPENHAGEN, Denmark – DONG Energy has agreed to acquire from Noreco around 2.4% of the Hess-operated South Arne field offshore Denmark.

In August, Noreco announced a deal to sell its share of the field to Hess. However, according to a cooperative agreement for the South Arne consortium, the existing partners hold a pro rata pre-emption right relative to their shares.

DONG Energy and Danoil decided to make use of this right.

DONG Energy will pay around DKK 400,000 million ($71 million) for the stake, and will also acquire a similarly increased stake in the latest-phase development of the South Arne field for DKK 200,000 million ($35.5 million).

This will lift DONG Energy’s interest in the field to 36.8%, with Hess holding 61.5% and Danoil 1.7%.

Last year South Arne produced 8.2 MMboe.

10/04/2011

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