Tuesday, 13 June 2017

Dong completes transformation with oil & gas disposal, by Andrew Lee, Recharge News, 24 May 2017

Global offshore wind pacesetter Dong Energy hailed its “transformation into a leading pure-play renewables company” after agreeing to sell its oil and gas business for up to $1.3bn.
The Danish group struck a deal with the UK’s Ineos that will see the latter take on Dong E&P when the transaction completes in the third quarter of 2017.
Dong first announced plans to divest its fossil-focused assets last year, and the deal will see it receive $1.05bn unconditionally and another $250m depending on developments at certain assets.
The sale will give Dong more firepower to fund its global offshore wind expansion plans, which have already seen it take the lead in the sector.
The company is on track to have 6.5GW in place off Europe by the end of the decade, and last year flagged an ambition to have stakes in 11-12GW of offshore capacity by 2025.
That will see the group move into new markets such as the US and Taiwan – it already has interests in projects in both nations.
Dong recently signalled a new phase for the offshore wind sector when it lodged ‘zero subsidy’ bids for future plants off Germany.
Dong CEO 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. With the agreement with Ineos we’ve obtained just that.”
“The transaction completes the transformation of Dong Energy into a leading, pure play renewables company.”
Danish state-controlled Dong – in which investment giant Goldman Sachs also holds a stake – is the most notable example of a fossil-fuel-based operation pivoting towards clean energy.
Norway’s Statoil and Anglo-Dutch group Shell have also entered the offshore wind sector – although not to anything like the same extent as Dong – while France’s Total is a serious player in the solar industry.

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