DONG Energy sheds oil and gas business

DONG Energy agreed to sell its entire share capital in its oil and gas business, DONG E&P, to Ineos.

Under the agreement, Ineos will pay US$1.05 billion (DKK 7 billion)on a cash and debt-free basis, a contingent payment of $150 million related to the Fredericia stabilization plant and a contingent payment of up to $100 million subject to the development of the Rosebank field.

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 & Gas business.”

He added that the oil and gas business divestment “completes the transformation of DONG Energy into a leading, pure play renewables company.”

Of the $1.050 billion unconditional consideration, $250 million will be payable from 2018 to 2020.

Closing of the transaction is expected to take place in the third quarter of 2017, with approximately 440 employees of the DONG Energy group working for oil & gas will be transferred to Ineos.

1 DKK = 0.150404 USD