INEOS has completed the purchase of the DONG Oil & Gas Business from DONG Energy A/S. The completion of the deal positions INEOS as a top ten company in the North Sea and the biggest privately owned exploration and production business operating in the energy basin.

The business brings with it a good mix of long life and development fields, producing an average of 100,000 boepd (in 2016) in the North Sea, with around 570 million boe of commercial and potential oil and gas reserves in Denmark, Norway and the UK (West of Shetland). It is a natural fit for INEOS, further strengthening its long-term activity in the North Sea, which was founded on the acquisition of both DEA’s and Fairfield’s UK portfolios in 2015 and more recently the announcement to buy the Forties Pipeline System from BP.

Geir Tuft, CEO of INEOS Oil & Gas said, “We are very pleased to have completed the deal to acquire this business from DONG Energy. We see lots of opportunity within this impressive portfolio and we are keen to integrate it into our growing portfolio of Oil & Gas businesses. This business is a natural fit for INEOS as we continue to expand our Oil & Gas activities. We are very pleased to bring this competitive, well run business into INEOS, with its experienced team, a strong portfolio of long life assets and a very good mix of existing production and developments across the North Sea.”

The strong portfolio of assets is built around three world class fields; Ormen Lange is the largest field in the DONG portfolio and the second largest gas field in Norwegian waters, Laggan-Tormore is a new gas field West of Shetland which came on-stream early 2016 and Syd Arne is a large oil field in Denmark. Along with the existing production the portfolio also features several large scale oil & gas developments in Denmark, Norway and UK (West of Shetland).

430 people will now transfer to INEOS, working across a portfolio of production, development, exploration and appraisal assets in Denmark, Norway and UK (West of Shetland). The business to be known as INEOS DeNoS, will form part of INEOS Oil & Gas, a business division within the INEOS Industries.

The Business has been acquired by the INEOS Industries business division.

About DONG Oil & Gas Business

Daily production of oil and gas in 2016 for the DONG Oil & Gas Business averaged 100,000 barrels oil equivalent. 70% of production come from its Norwegian fields, about 15% production from its Danish fields and another 15% production from its West of Shetland fields in the UK.

The Business has shares in 10 producing fields in Denmark, Norway, and the UK. The vast majority of its production comes from the large Norwegian gas field Ormen Lange, in which Dong Oil & Gas holds a 14% interest.

Denmark: The Business holds a strong production focused position in Denmark from the operated Siri-area (including the Nini, Nini East and Cecilie fields) and the Syd Arne area (including the Lulita field). The Danish Continental Shelf also offers a significant set of development opportunities in the form of Hejre/Solsort/related reserves which will be a major focus of the business going forwards.

Norway: The Ormen Lange natural gas field is located in the Norwegian sector of the North Sea, approximately 120 km northwest of Kristiansund. Water depths are between 800 and 1,100 metres and the natural gas is located approximately two km into the subsoil. The development project was initiated in 2003 and the field was put in production in 2007.The natural gas from the huge Norwegian natural gas field Ormen Lange is produced using one of the most technologically advanced production facilities in the world. DONG Oil & Gas has a 14% interest in the field.

United Kingdom: The Business has four producing gas fields, Laggan and Tormore, and Edradour and Glenlivet (West of Shetland). Further there are oil and gas discoveries in Rosebank. The Business has made full use of the experience gained from its co-ownership of the Norwegian natural gas field, Ormen Lange. Production from the Laggan and Tormore fields started early 2016. The development of the Laggan-Tormore fields also comprise a transport system for the gas to Scotland via the Shetland Islands. This transport system now provides an opportunity for existing and future discoveries in the area.

About INEOS

INEOS is a leading manufacturer of petrochemicals, specialty chemicals and oil products. Comprising 18 businesses, with a production network spanning 105 manufacturing facilities in 22 countries, it produces more than 60 million tonnes of petrochemicals, 20 million tons per annum of crude oil refined products (fuels) and in 2016 it had sales of around $40bn. Worldwide, INEOS employs 18,500 people. Our management philosophy is to operate a simple and decentralized organizational structure.

INEOS products make a significant contribution to saving life, improving health and enhancing standards of living for people around the world. From paints to plastics, textiles to technology, medicines to mobile phones - chemicals manufactured by INEOS enhance almost every aspect of modern life.

About DONG Energy

DONG Energy (Nasdaq OMX: DENERG) is one of Northern Europe's leading energy groups and is headquartered in Denmark. Around 5,600 ambitious employees develop, construct and operate offshore wind farms, generate power and heat from our power stations as well as supply and trade in energy to wholesale, business and residential customers. The continuing part of the Group generated revenue in 2016 of DKK 61 billion (EUR 8.2 billion).