DONG Energy enters an agreement to divest its upstream oil and gas business to INEOS
DONG Energy has agreed to divest the entire share capital of DONG E&P A/S to INEOS for an unconditional payment of USD 1,050 million on a cash and debt free basis, a contingent payment of USD 150 million related to the Fredericia stabilisation plant and a contingent payment of up to USD 100 million subject to the development of the Rosebank field.
INEOS will, by acquiring DONG E&P A/S, take over decommissioning liabilities of approximately DKK 7.0 billion. DONG Energy will retain all cash flows until 30 June 2017 and retain all hedge contracts related to the Oil & Gas 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.”
“The transaction completes the transformation of DONG Energy into a leading, pure play renewables company,” Henrik Poulsen concluded.
The transaction is expected to result in a gain on sale of enterprises of approximately DKK 2.5 billion.
At closing of the transaction, approximately 440 employees working for DONG Energy Oil & Gas will transfer to employment with the INEOS group.
• Leading manufacturer of petrochemicals, specialty chemicals and oil products
• 18,500 employees across 105 manufacturing sites worldwide
• Turnover of around USD 40 billion in 2016.
About DONG Energy Oil & Gas
• Around 440 people are working in DONG Energy Oil & Gas
• In total 50 licences in Denmark, Norway and the UK
• Daily production of oil and gas in 2016 averaged 100,000 barrels of oil equivalents
• 70% of production in 2016 came from Norwegian fields, about 15% production from Danish fields and another 15% production from the West of Shetland fields in the UK.
DONG Energy (NASDAQ OMX: DENERG) is one of Northern Europe’s leading energy groups and is headquartered in Denmark. Around 6,200 employees develop, construct and operate offshore wind farms, generate power and heat from our power stations as well as supply and trade in energy to wholesale, business and residential customers. The continuing part of the Group has approx 5,800 employees and generated a revenue in 2016 of DKK 61 billion (EUR 8.2 billion). Read more on www.dongenergy.com.
@This article is published by conbio.info 2017-06-02 and based on a press release which has been edited by Lennart Ljungblom. conbio.info is focusing on news that may have an impact on bioenergy business and also bioenergy news with impact on society and other relevant areas, on line since 2013.