The Hess business in Denmark comprises operated assets focused on the production of oil
Ineos will acquire 61.5% of the Syd Arne oil field. (Credit: D Thory from Pixabay)
Ineos E&P, part of Ineos Energy, has signed an agreement with Hess to acquire its Danish oil and gas assets for $150m.
The Hess business in Denmark includes operated assets focused on the production of oil.
For Ineos Energy, the transaction is the first deal to be announced after its formation to incorporate Ineos’ oil and gas business.
As part of the deal, Ineos will acquire 61.5% of the Syd Arne oil field, currently operated by Hess. The oil field is already 36.8% owned by Ineos.
The company will also buy 4.8% of the Solsort field, where it is currently the operator.
Ineos Energy executive chairman Brian Gilvary said: “This deal represents a major step in reshaping our energy business. HESS was one of the earliest pioneers in developing this basin.
“This deal will open up future growth prospects that can be developed in Denmark’s offshore oil and gas sector, supported by a very promising carbon storage project helping to deal with future emissions.
“The Greensands project in Denmark will make a significant contribution to our understanding and growth of carbon storage technology, whilst supporting Denmark’s wider CO2 emission reduction targets for 2030 and beyond.”
The transaction is expected to be completed in the third quarter of this year, subject to government approval.
Upon completion, nearly 60 people related to Hess’ Denmark business will be transferred to Ineos.
Currently, Ineos is the operator of the Siri field area in Denmark and by gaining the operatorship of Syd Arne oil field, the company expects to unlock operational and cost synergies between the two assets.
Ineos said that the strengthened operated position in Denmark aligns with its leadership in the Greensands project.
The Greensands project involves permanent storage of up to 8 million tonnes of CO2 per annum, in the Siri area, when the fields have ceased production.