In less than two years INEOS has become a major player in the North Sea oil and gas industry. But to those who know INEOS, that’s no surprise
INEOS has bought a Danish company’s entire oil and gas assets in the North Sea for more than $1 billion.
DONG Energy said it wanted to focus on renewables, in particular wind farms.
“We have been actively working to get the best transaction by selling the business as a whole to ensure its long-term development and, with INEOS, we have obtained just that,” said Henrik Poulsen, CEO of DONG Energy.
For INEOS, the acquisition of a portfolio of well-run, long-life assets, with a highly successful and experienced team, is a perfect fit as the Group continues to expand its Upstream business.
“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,” said INEOS Chairman Jim Ratcliffe. “We already see lots of opportunity within this impressive portfolio.”
In acquiring the entire DONG Oil & Gas Business, the deal positions INEOS as a top ten company in the North Sea and the biggest privately owned exploration and production business operating in this energy basin.
Included in the deal is Ormen Lange, the second largest gas field in Norwegian waters, Laggan- Tormore, a new gas field west of Shetland, and oil and gas hubs in Denmark.
The business currently produces about 100,000 barrels of oil equivalent per day and about 70% of its production comes from its Norwegian fields.
But INEOS Upstream believes it can do more.
“We think we have got a lot to offer this business,” said Jim.
INEOS already has a proven track record in operating complex assets to further maximise the economic recovery of the hydrocarbons.
The Upstream business was founded in October 2015 when it bought all of the UK North Sea gas fields owned by the DEA Group. A few days later Fairfield Energy Holdings Ltd sold its 25% interest in the Clipper South platform to INEOS.
More recently INEOS agreed to acquire a strategic UK asset as it plans to buy BP’s 235-mile Forties pipeline system for $250 million.
The latest deals are subject to regulatory approval but once complete, the 440 DONG and FPS staff will become INEOS employees.