DONG ENERGY TO SELL 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. INEOS will, by acquiring DONG E&P, take over decommissioning liabilities of approximately DKK 7.0 billion. 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. With the agreement with INEOS we’ve obtained just that.” The transaction is expected to result in a gain on sale of enterprises of DKK 2.5 billion which includes the contingent payment related to the Fredericia stabilisation facility. The gain will be presented as part of net profit from discontinued operations in DONG Energy’s financial statements after closing.
DONG Energy holds a well-established market position in Northwest Europe, centred around high quality offshore assets in Denmark, Norway and the United Kingdom. We produce and explore across all three geographical regions. (Source: Dong Energy)