The Danish and Norwegian authorities approved the indirect transfer of the oil and gas licenses in the respective countries.

The UK-based petrochemical giant Ineos, as part of the agreement, will take over all decommissiong liabilities.

On the other hand, in compliance with the regulatory framework in Norway and Denmark, Dong Energy will assume a secondary liability for the decommissioning of existing offshore facilities in the two countries.

Dong Energy stated: “We are pleased to announce that today the parties have received the regulatory approvals from the Danish and Norwegian authorities to the indirect transfer of the oil and gas licenses in the respective countries.”

Ineos and the Danish energy firm Dong Energy had entered into a definitive agreement pertaining to the latter’s exploration and production business in late May. Their transaction was approved by the European Commission in June, which cleared the proposed merger from raising any competition concerns.

As part of the deal, the assets to come under Ineos’ fold would include Dong’s 50 licences in Norway, the UK and Denmark. Most of Dong’s 2016 production had come from its Norwegian fields, constituting 70% of the total volume.

Dong’s UK West of Shetland and Danish fields contributed volumes of 15% each to the company’s 2016 production.

The Danish energy firm had decided to divest its exploration and production business to focus on the renewables industry.

Ineos is into production of petrochemicals, speciality chemicals and oil products having limited operations in the upstream oil and gas sectors. Its acquisition of Dong E&P could potentially place it among the leading operators in the North Sea.

The 2016 production of Ineos’ consolidated assets was 100,000 barrels of oil equivalent per day (boepd).

Image: Ineos on the verge of closing its $1.3bn acquisition of Dong E&P. Photo: courtesy of INEOS.