Ratcliffe expands activities
Ineos buys Dong’s oil and gas ops in $1bn deal
Ineos, the Grangemouth operator, has acquired Dong Energy’s oil and gas operations for $1.05 billion.
The deal on a cash and debt free basis includes 50 licences in Denmark, Norway and the UK and 100,000 barrels of oil equivalents per day.
It is a further step in Dong’s move towards being a pure play renewables business.
Henrik Poulsen, CEO of DONG Energy, said: “Since the decision in 2016 to divest our upstream oil and gas business, we’ve actively worked to get the best transaction by selling the business as a whole, getting a good and fair price for it and ensuring the optimal conditions for the long-term development of the oil and gas business. With the agreement with INEOS we’ve obtained just that.
“The transaction completes the transformation of DONG Energy into a leading, pure play renewables company,”
At closing of the transaction, approximately 440 employees working for DONG Energy Oil & Gas will transfer to employment with the INEOS group.
J.P. Morgan acted as exclusive financial adviser to DONG Energy in connection with the transaction.
The deal places Ineos in the top 10 ranking of producers in the North Sea. It also cements it as the largest private company in the North Sea. It is already the world’s fourth-largest chemicals company and most recently acquired the Forties pipeline from BP.
Jim Ratcliffe, Ineos chairman, said: “Dong Energy’s Oil & Gas business is a natural fit for Ineos as we continue to grow our upstream activities. We are pleased to acquire this competitive, well run business, with its highly successful and experienced team, a strong portfolio of long life assets and a very good mix of existing production and developments across the North Sea.”