As part of the process of transforming the company into an entirely renewables based enterprise Dong Energy has agreed to divest all the share capital of its oil and gas arm 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. INEOS will, by acquiring Dong E&P A/S, 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 and gas business. With the agreement with INEOS we’ve obtained just that”.
Closing of the transaction is subject to regulatory and certain other third party approvals and is expected to take place in the third quarter of 2017.