Page 9 - EurOil Week 12 2021

EurOil INVESTMENT EurOil

Ineos picks up Danish

assets for $150mn

DENMARK THE UK’s Ineos announced on March 18 it had “This deal will open up future growth prospects
reached a deal to buy the Danish arm of US oil that can be developed in Denmark’s offshore
The move comes firm Hess for $150mn. oil and gas sector, supported by a very promis-
after Ineos closed its The move comes months after Ineos closed its ing carbon storage project helping to deal with
$5bn takeover of BP’s $5bn takeover of BP’s petrochemicals division. future emissions.”
petrochemicals division. Ineos also controls upstream assets off Denmark, Hess, meanwhile, plans to use the proceeds
Norway and the UK. from the deal to pay for its operations in Guyana.
Through the deal, the company will acquire “The sale of our Denmark asset enables us to
a 61.55% stake in the Hess-operated Syd Arne further focus our portfolio and strengthen our
oilfield, adding to the 36.8% share it already has. cash and liquidity position,” CEO John Hess said.
It will also pick up an extra 4.8% position in the “Proceeds will be used to fund our world-class
Solsort oilfield that it operates. The transaction is investment opportunity in Guyana.”
scheduled for closure in the third quarter, subject North Sea M&A activity has heated up this
to Danish government approval. year, driven by rising oil and gas prices and
In its statement, Ineos said it expected to economic recovery. Private equity fund man-
unlock operational and cost synergies through ager Kerogen Capital agreed terms to sell its
the deal with its existing Danish assets. UK-focused Zennor Petroleum unit to NEO
“With this acquisition, Ineos also plans to add and its Norwegian backer Hitecvision for up to
further value through organic growth projects $625mn last week. Meanwhile, UK energy group
which will further extend the life of the asset,” Cairn Energy announced the sale of interests in
the company said. the Catcher and Kraken fields in the UK North
Besides shares in oil and gas fields, Ineos is Sea to Aberdeen-based Waldorf Petroleum for
also leading the Greensands project, which aims $460mn.
to permanently store up to 8mn tonnes per year Over in Dutch waters, Tulip Oil just agreed to
(tpy) of CO2 in the Siri area, where oilfields have sell a group of gas fields to AIM-listed investment
ceased production. group Kistos for at least €220mn ($263mn).
“This deal represents a major step in reshap- Denmark plans to phase out oil and gas pro-
ing our energy business. Hess was one of the duction completely by 2050, and as part of this
earliest pioneers in developing this basin,” Ineos plan has agreed to end large-scale oil and gas
executive chairman Brian Gilvary commented. licensing. ™

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