Dong Energy agrees sale of oil and gas business to become 'pure play renewables company'
PURE PLAY RENEWABLES: Dong Energy will become a wholly green business with the sale of oil and gas. Pictured: Race Bank, Henrik Poulsen and the plans for an enlarged Grimsby footprint.
By Grimsby Telegraph | Posted: 24 May 2017
DONG Energy has agreed an £800 million deal to sell its substantial interests in oil and gas, as it goes green.
Ineos is acquiring the entire share capital of the fossil fuel business, taking decommissioning liabilities too.
Henrik Poulsen, chief executive, 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. The transaction completes the transformation of Dong Energy into a leading, pure play renewables company.”
Dong is making Grimsby its east coat hub for offshore wind as part of a £6 billion spend in the Humber. The operational Westermost Rough is being joined by Race Bank and the Hornsea phased projects, while it is also in the process of taking over the operations and maintenance of Lincs, sold by Centrica to Green Investment Bank.
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.
About 440 employees working for Dong Energy Oil & Gas will transfer to Ineos.