Dong Energy has agreed to dispose of its oil and gas assets as it aims to complete a transition towards an entirely renewables future.
Last week the company confirmed it had agreed to divest the entire share capital of Dong E&P – the entity which housed its oil and gas assets – to INEOS for an unconditional fee of US$1.05 billion (£815 million), plus a further US$250 million (£195 million) of contingent payments related to developments at the Rosebank field and the Fredericia stabilisation plant.
Transaction closing remains subject to regulatory and third-party approvals and is expected to take place in Q3 2017, after which roughly 440 Dong employees will migrate to employment under INEOS.
The deal closes a chapter on Dong’s history as an oil and gas major having previously outlined its ambition to go renewables-only in 2016. Henrik Poulsen, chief exec at Dong, said the deal with INEOS was representative of a “good and fair price” which ensured optimal conditions for Dong E&P’s future development.
“The transaction completes the transformation of DONG Energy into a leading, pure play renewables company,” Poulsen added.
Dong's renewables business in the UK is driven by a strong presence in offshore wind, having been the recipient of a number of Contracts for Difference awards.