INEOS has agreed to acquire the Oil & Gas Business from DONG Energy for an unconditional payment of $1.05bn, plus a contingent payment of $150 million related to the Fredericia stabilisation plant in Denmark and one of up to $100 million subject to the development of the Rosebank field, West of Shetland, UK. The acquisition and transfer of ownership is targeted to complete within Q3 2017.

DONG Energy’s Oil & Gas business contains 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). The 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. INEOS sees itself ideally placed to extend the lifespan of these assets and invest in the major oil & gas development opportunities that accompany this portfolio.

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 North Sea. Today, INEOS is one of the largest petro-chemical companies and the 200th largest business in the world, employing, together with its Joint Ventures, around 18,500 people across 105 sites in 22 countries, with sales of $40bn. On completion of the deal, 440 people will transfer to INEOS, working across a portfolio of production, development, exploration and appraisal assets in Denmark, Norway, and UK (West of Shetland).

• INEOS, Rolle, Switzerland
• DONG Energy, Fredericia, Denmark