Ineos in £1bn North Sea expansion deal

BRITISH petrochemical giant Ineos is to buy the upstream oil and gas business of Danish group Dong Energy in a deal worth up to £1billion.

Ineos, controlled by British billionaire Jim Ratcliffe, said the move will make the firm one of the top ten North Sea oil companies and the biggest private group operating in the area.

It will add a portfolio of production, development and exploration sites off the coast of Denmark, Norway and west of Shetland. Around 440 staff will also transfer from Dong on completion of the deal, expected in the third quarter.

Mr Ratcliffe, chairman of Ineos, which owns the Grangemouth refinery in Stirlingshire, said the business was a ‘natural fit’ for the group as it expands.

He added: ‘This business is very important to us at this stage of our growth plans and we are delighted with the expertise that comes with it.’ Dong chief executive Henrik Poulsen said: ‘Since the decision in 2016 to divest our upstream oil and gas business, we’ve actively worked to get the best transaction by selling the business as a whole, getting a good and fair price for it and ensuring the optimal conditions for the long-term development of the oil and gas business.’

The acquisition comes a month after Ineos agreed a £193million deal for a 235-mile pipeline from BP.