Kvale advised DONG Energy on the sale of its oil and gas business to INEOS

On the 24th May 2017 DONG Energy A/S entered into an agreement to transfer its oil and gas business to INEOS holding Limited (INEOS) for a total payment of USD 1.3 Billion (approx. NOK 11 billion) on a cash and debt free basis. The divestment is carried out through DONG Energy’s sale of all the shares in DONG E&P A/S to INEOS, which includes the Norwegian business of DONG E&P Norge AS. The consideration consist of an unconditional payment of USD 1.050 million and a contingent payment of up to USD 100 million. INEOS will, at completion, take over decommissioning obligations currently estimated to approx. NOK 8.8 billion. DONG Energy will retain all hedge contracts related to the oil and gas business (market value was approx. NOK 2.4 billion at 31 March 2017).

Closing of the transaction is subject to governmental approvals (Norway: Ministry of Petroleum and Energy and Ministry of Finance) in addition to approvals from various third parties. The Norwegian oil and gas activities have created the highest economic value in DONG Energy’s oil and gas portfolio, and we have assisted DONG Energy in all parts of the sale process. This might turn out to be one of the biggest oil- and gas transactions in Europe this year, and we are of course proud to be one of the core advisors in this transaction. Kromann Reumert and Allen & Overy are the two other law firms representing the seller. Yngve Bustnesli has been the lead counsel for the Norwegian part of the transaction.

Contact info: 
Yngve Bustnesli (partner)
+47 993 35 757