DONG Energy sells upstream business to Ineos

DONG Energy sells upstream business to Ineos

Denmark’s DONG Energy has today agreed to divest the entire share capital of DONG E&P to the UK’s Ineos for $1.05bn, bringing to an end speculation that its upstream business would merge with Maersk’s.

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. The transaction completes the transformation of DONG Energy into a leading, pure play renewables company.”

Last year Maersk and DONG Energy had held discussions about merging both of their oil divisions.

Maersk continues to seek an exit from its upstream commitments as it seeks to be a pure container player.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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