24 May DONG Energy to divest upstream oil and gas business
DONG Energy (CSE:DENERG) has confirmed it will sell the entirety of its upstream oil and gas business to Ineos, in a deal totalling US$1 billion.
Chief executive Henrik Poulsen revealed the divestment is part of the Danish company’s continued evolution towards becoming a pure play renewable energy firm.
“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,” said Poulsen.
“The transaction completes the transformation of DONG Energy into a leading, pure play renewables company.”
The deal includes 50 licences in Denmark, Norway and the UK with a total production of 100,000 barrels per day (bpd) of oil.
440 DONG staff will transfer to Ineos as part of the deal, which will be paid in instalments beginning with a $250 million payment due between 2018 and 2020.
Privately-owned Ineos will rise into the top 10 of oil producers in the North Sea after the conclusion of the sale.