EU Clears Ineos to Buy Dong E&P

UK-based Ineos's acquisition of Danish utility Dong's upstream business announced last month was cleared by the European Commission June 22.

It concluded that the proposed transaction would raise no competition concerns given that the companies' activities overlap only to a limited extent. The privately-owned chemicals group controlled by billionaire Jim Ratcliffe will pay Dong $1.05bn, plus $250mn in contingent payments.

Dong E&P produced 100,000 barrels of oil equivalent/day in 2016, of which 70% in Norway -- chiefly its 14% stake in the Shell-operated Ormen Lange gas field -- plus 15% from Denmark and 15% from UK West of Shetland fields – including a 20% interest in Total-operated Laggan-Tormore UK gas field.

Mark Smedley