Ineos to acquire Denmark assets from Hess for $150 million
Ineos E&P AS, a unit of Ineos Energy, has agreed to acquire Hess Corp. subsidiary Hess Denmark ApS for $150 million.
The Hess business in Denmark consists of operated assets focused on the production of oil. As part of the deal, Ineos will acquire 61.5% of the Hess-operated Syd (South) Arne oil field in the Danish North Sea, adding to the 36.8% share Ineos already holds in the field. Ineos will also acquire 4.8% of Solsort field, which is already operated by Ineos.
Syd (South) Arne field produced an average of 5,800 boe/d net to Hess in fourth-quarter 2021. The field, which lies about 150 miles west of Esbjerg, has produced oil and gas since 1999 and uses horizontal production and water-injection wells to optimize production from chalk reservoirs.
Ineos said it plans organic growth projects to further extend the life of the asset within the context of the Danish government’s decision to cease production on the Danish shelf by 2050.
The deal also will help support development of the Greensands carbon storage project, which plans to permanently store up to 8 million tonnes/year of CO2 in the Ineos-operated Siri area when the fields have ceased production, the company continued.
About 60 people will transfer to Ineos on completion of the deal, which is expected in third-quarter 2021, subject to government approval.
