Ineos continues its acquisition in the Danish part of the North Sea. The British company has thus agreed with the American Hess to acquire the company's Danish subsidiary, Hess Denmark. The price is just over 935 million DKK, and will be implemented retroactively from 1 January 2021.
With the acquisition, Ineos will take over, among other things, Hess Denmark's 61.5 percent of the South Arne Field in the North Sea, which Hess has lost a lot of money on and previously tried to sell. The field will thus be 98.3 percent controlled by Ineos.
Ineos is already the operator of the Siri field, and expects to be able to achieve operational and cost synergies by also becoming the operator of the South Arne Field.
- This transaction represents a major step in the direction of restructuring our energy businesses. Hess was one of the pioneers in developing the fields in the area. This agreement will open up growth opportunities to develop Denmark's oil and gas sector, says Brian Gilvary, chairman of Ineos Energy.
Ineos' latest scaling up of its presence in the Danish part of the North Sea took place in November, when the Danish Energy Agency approved the British company's acquisition of parts of the Solsort and Hejre fields from Spirit Energy Danmark ApS and the Norwegian company Spirit Energy Petroleum Denmark AS. In connection with the deal with Hess, Ineos increases its share of the Solsort field by 4.8 percent.
With the acquisition, Ineos will also increase its focus on the CCS project 'Greensands', which plans to store up to eight million tonnes of CO2 per year in the Siri area.
- The Greensands project in Denmark will make a big difference in terms of our understanding and growth within carbon storage technology, while supporting Denmark's goal of reducing CO2 emissions towards 2030 and beyond, says Brian Gilvary.
The transaction is expected to be approved by the authorities in the third quarter of this year.
Hess Denmark has struggled with a number of negative accounts for a number of years. Thus, Hess Denmark lost just over 600 million DKK in 2019 and has not registered a profit since 2014.
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