Ineos E&P, a division of Ineos Energy, has agreed to buy all oil and gas interests of Hess in Denmark in a deal valued at $150m.

Hess Denmark owns 61.5% interest in the South Arne Field located about 150 miles west of Esbjerg. The remaining stake is owned by Ineos.

Under the deal, Ineos E&P will also buy a 4.8% interest in the Solsort field, where it is currently the operator.

Ineos Energy executive chairman Brian Gilvary said: “This deal represents a major step in reshaping our energy business. HESS was one of the earliest pioneers in developing this basin.

“This deal will open up future growth prospects that can be developed in Denmark’s offshore oil and gas sector, supported by a very promising carbon storage project helping to deal with future emissions.

“The Greensands project in Denmark will make a significant contribution to our understanding and growth of carbon storage technology, whilst supporting Denmark’s wider CO₂ emission reduction targets for 2030 and beyond.”

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By GlobalData

Ineos anticipates the deal to strengthen its portfolio, improve the balance of oil and gas assets, and unlock operational and cost synergies in the basin.

The transaction is expected to be completed in the third quarter of this year, subject to government approvals and customary closing condition.

Hess CEO John said that the sale of Denmark asset allows the company to further focus on portfolio and strengthen cash and liquidity position.

John added: “Proceeds will be used to fund our world-class investment opportunity in Guyana.”

Upon the completion of the transaction, nearly 60 people related to Hess’ Denmark business will be transferred to Ineos.