DONG Energy sells upstream oil and gas business to INEOS
Dong Energy has today decided to sells its entire oil and gas business to British petrochemicals group INEOS in a deal worth more than DKK 8.7 billion.
DONG Energy sells its entire shareholding in DONG E&P A/S to INEOS for an unconditional payment of USD 1,050 million (DKK 7.0 billion) on a cash and debt free basis, a contingent payment of USD 150 million (DKK 1.0 billion) related to the Fredericia stabilisation plant and a contingent payment of USD 100 million (DKK 0.7 billion) which is conditional upon development of the Rosebank field.
INEOS will take over decommissioning liabilities of approximately DKK 7.0 billion in connection with the takeover of DONG E&P A/S. DONG Energy will retain all cash flows until 30 June 2017 (free cash flows were DKK 2.1 billion in Q1, 2017) and all hedge contracts related to the Oil & Gas business (market value was DKK 1.9 billion as at 31 March 2017).
The transaction is subject to regulatory and other third-party approval and is expected to be completed in the third quarter of 2017. Around 440 DONG Energy employees will join the INEOS group on completion of the sale.
Kromann Reumert has been assisting DONG Energy during the entire sale process, Anders Stubbe Arndal being the responsible partner.