INEOS completes the acquisition of the entire Oil & Gas Business from DONG Energy A/S
- The deal positions INEOS as a Top 10 company and the biggest private enterprise operating in the North Sea.
- 430 staff will transfer to INEOS’ Oil & Gas Business including a full complement of highly experienced Oil & Gas personnel,
- The business complements INEOS' existing Oil & Gas activities which were formed on the acquisition of both DEA’s and part of Fairfield's UK portfolio in 2015.
- Geir Tuft, CEO of INEOS Oil & Gas says, “DONG Energy’s Oil & Gas business is a natural fit for INEOS as we continue to grow our Oil & Gas activities. We are pleased to have completed the acquisition of this competitive, well run business, with its experienced team, a strong portfolio of long life assets and a very good mix of existing production and developments across the North Sea.”
INEOS has today completed the purchase of the DONG Oil & Gas Business from DONG Energy A/S. The completion of the deal positions INEOS as a top ten company in the North Sea and the biggest privately owned exploration and production business operating in the energy basin.
The business brings with it a good mix of long life and development fields, producing an average of 100,000 boepd (in 2016) in the North Sea, with around 570 million boe of commercial and potential oil and gas reserves in Denmark, Norway and the UK (West of Shetland). It is a natural fit for INEOS, further strengthening its long-term activity in the North Sea, which was founded on the acquisition of both DEA’s and Fairfield’s UK portfolios in 2015 and more recently the announcement to buy the Forties Pipeline System from BP.
Geir Tuft, CEO of INEOS Oil & Gas said, “We are very pleased to have completed the deal to acquire this business from DONG Energy. We see lots of opportunity within this impressive portfolio and we are keen to integrate it into our growing portfolio of Oil & Gas businesses. This business is a natural fit for INEOS as we continue to expand our Oil & Gas activities. We are very pleased to bring this competitive, well run business into INEOS, with its experienced team, a strong portfolio of long life assets and a very good mix of existing production and developments across the North Sea.”
The strong portfolio of assets is built around three world class fields; Ormen Lange is the largest field in the DONG portfolio and the second largest gas field in Norwegian waters, Laggan-Tormore is a new gas field West of Shetland which came on-stream early 2016 and Syd Arne is a large oil field in Denmark. Along with the existing production the portfolio also features several large scale oil & gas developments in Denmark, Norway and UK (West of Shetland).
430 people will now transfer to INEOS, working across a portfolio of production, development, exploration and appraisal assets in Denmark, Norway and UK (West of Shetland). The business to be known as INEOS DeNoS, will form part of INEOS Oil & Gas, a business division within the INEOS Industries.
The Business has been acquired by the INEOS Industries business division.
Richard Longden (INEOS) 0041 21 627 7063 or 0041 7996 26123
Andrew McLachlan (Media Zoo) 020 7384 6980 or 07931 377162
Joseph Wade (Media Zoo) 020 7284 6980 or 07758 074576
Notes to editors
Daily production of oil and gas in 2016 for the DONG Oil & Gas Business averaged 100,000 barrels oil equivalent. 70% of production come from its Norwegian fields, about 15% production from its Danish fields and another 15% production from its West of Shetland fields in the UK.
The Business has shares in 10 producing fields in Denmark, Norway, and the UK. The vast majority of its production comes from the large Norwegian gas field Ormen Lange, in which Dong Oil & Gas holds a 14% interest.
Denmark: The Business holds a strong production focused position in Denmark from the operated Siri-area (including the Nini, Nini East and Cecilie fields) and the Syd Arne area (including the Lulita field). The Danish Continental Shelf also offers a significant set of development opportunities in the form of Hejre/Solsort/related reserves which will be a major focus of the business going forwards.
Norway: The Ormen Lange natural gas field is located in the Norwegian sector of the North Sea, approximately 120 km northwest of Kristiansund. Water depths are between 800 and 1,100 metres and the natural gas is located approximately two km into the subsoil. The development project was initiated in 2003 and the field was put in production in 2007.The natural gas from the huge Norwegian natural gas field Ormen Lange is produced using one of the most technologically advanced production facilities in the world. DONG Oil & Gas has a 14% interest in the field.
United Kingdom: The Business has four producing gas fields, Laggan and Tormore, and Edradour and Glenlivet (West of Shetland). Further there are oil and gas discoveries in Rosebank. The Business has made full use of the experience gained from its co-ownership of the Norwegian natural gas field, Ormen Lange. Production from the Laggan and Tormore fields started early 2016. The development of the Laggan-Tormore fields also comprise a transport system for the gas to Scotland via the Shetland Islands. This transport system now provides an opportunity for existing and future discoveries in the area.