Ineos Sells NCS Positions After Buying Denmark Assets From Hess

The energy unit of the London-based multinational chemical company is seeking to bolster its ownership of operated offshore assets.

Source: Ineos Energy

The oil and gas unit of London-based Ineos Group announced Thursday that it has signed an agreement to sell its assets in the Norwegian Continental Shelf (NCS) to a subsidiary of Polish oil and gas company PGNiG Group for $615 million.

The deal includes all Ineos Energy-owned working interests, licenses, operated fields, facilities, and pipelines.

Combined production from the fields was around 33,000 BOE preceding the sale, 93% of which is gas, Ineos said in a statement. The production comes from three nonoperated offshore fields: Ormen Lange (14%), Alve (15%), and Marulk (30%). The deal also includes 22 offshore licenses, six of which are operating licenses.

Ineos said the deal was part of a shift toward operating positions. Pending regulator approval, the transaction is scheduled to be completed later this year. Ineos has a Norwegian workforce of 52 people who will be transferred to PGNiG at closing.

“The deal allows us to monetize a nonoperated, predominantly gas portfolio at an attractive price compared to our hold value,” Brian Gilvary, executive chairman of Ineos, said in a statement. “This will further balance our portfolio of oil and gas and open up new opportunities to reinvest further into the energy transition. These assets are a very strong strategic fit for PGNiG and significantly extends their position in Norway.”

Last week, Ineos announced it was acquiring the Denmark subsidiary of US oil producer Hess Corp. for $150 million. The deal hands Ineos a 61.5% operating position in the Syd Arne oil field where it already held a 36.8% interest. A smaller nonoperating stake in a separate field was also part of the transaction that is expected to close by the third quarter.