Ineos Buys Hess Denmark for US$150 million

Ineos E&P A/S, which is a part of Ineos Energy, has announced that it has completed a previously announced agreement to acquire the subsidiary Hess Denmark AS for a total consideration of US$150 million.

Under the deal, which has an effective date of the 1^st January Ineos acquires a 61.5 percent interest in the Syd Arne oil field, previously operated by Hess, which complements the 36.8 percent share Ineos already holds in the asset. The deal also includes a 4.8 percent stake in the Solsort field, which is already operated by the company.

By becoming the operator of Syd Arne, Ineos, which currently operates the Siri field area in Denmark, expects to unlock operational and cost synergies between the two assets.

The company also noted that its increased operated position in Denmark compliments its leadership in the Greensands project. Earlier this month, Ineos, Wintershall Dea and a consortium of 29 companies, research institutes and universities signed an agreement to support the next phase of the Greensands development, which supports Denmark’s 70 percent CO2 reduction targets by 2030.

“I am pleased we have been able to complete the acquisition,” Brian Gilvary, the executive chairman of Ineos energy, said in a company statement.

“The deal represents a major step in reshaping our energy business. It also opens up prospects that can be developed in Denmark’s offshore oil and gas sector, supported by a very promising carbon storage project,” he added.

Commenting on the deal, Hess’ chief executive officer, John Hess, said, “the sale of our Denmark asset enables us to further focus our portfolio and strengthen our cash and liquidity position”.

“Proceeds will be used to fund our world class investment opportunity in Guyana,” Hess went on to say.

Ineos announced in March that it had entered into an agreement to acquire the subsidiary Hess Denmark ApS for a total consideration of US$150 million. In a company statement at the time, Ineos highlighted that this was the first deal to be announced following the formation of the Ineos Energy business, which incorporates Ineos’ oil and gas business.

During the same month, Ineos announced an agreement to sell its oil and gas business in Norway to PGNiG Upstream Norway AS for a consideration of $615 million.

Source: Rigzone