INEOS to buy DONG Energy’s oil & gas business

In acquiring the DONG Oil & Gas business for a headline price of $1.05 billion plus $250m contingent will position INEOS as a top 10 company and the biggest private enterprise operating in the North Sea.
“DONG Energy’s oil & gas business is a natural fit for INEOS as we continue to grow our upstream activities,” said Jim Ratcliffe, INEOS chairman.
“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.
“This business is very important to us at this stage of our growth plans and we are delighted with the expertise that comes with it. We have been successful in our petro-chemical businesses, focusing on operating our assets safely, efficiently and reliably and we intend to do the same with our oil & gas assets. We are keen on further growth and already see lots of opportunity within this impressive portfolio when it transfers to INEOS.”
On completion, the Business will bring a full complement of highly experienced oil & gas personnel, with 440 staff transferring to INEOS. The business being acquired has a strong portfolio of long life assets, producing 100,000 barrels of oil equivalent per day in 2016 and with around 570 million boe of commercial and potential oil & gas reserves across the Danish, Norwegian and UK continental shelves.
This transaction will enable INEOS to significantly expand its trading and shipping activities making it a major trader in the sector.
INEOS has much to offer this business, bringing its proven track record in operating complex assets of this nature to further maximise the economic recovery of the hydrocarbons in the acquired portfolio. With a long term view and wide-spread industrial integration, INEOS is ideally placed to extend the lifespan of these assets and invest in the major oil & gas development opportunities that accompany this portfolio.
The DONG Oil & Gas business is a natural fit for INEOS, further strengthening its long-term upstream activity, which was founded on the acquisition of both DEA’s and Fairfield’s UK portfolios in 2015 and more recently the Forties Pipeline System from BP.
The acquisition and transfer of ownership is targeted to complete within Q3 2017, subject to the receipt of regulatory and other third party approvals. 
The Business will be acquired by the INEOS Industries business division.