Ineos has agreed to acquire the oil and gas business unit of Dong Energy in a deal worth $1.05bn. 

The company will also make a contingent payment of $150m for Fredericia stabilisation plant and up to $100m, subject to the development of offshore Rosebank field.  

The oil and gas business complements the existing upstream activities of Ineos, which were established in 2015 following the purchase of DEA, plus a portion of Fairfield's UK portfolio. 

Ineos chairman Jim Ratcliffe said: “Dong Energy's oil and gas business is a natural fit for Ineos as we continue to expand our upstream interests. 

“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.”  

Last year, all Dong Energy’s fields produced an average of 100,000boepd.

"Dong Energy's oil and gas business is a natural fit for Ineos as we continue to expand our upstream interests."

Its portfolio of assets includes Ormen Lange field in Norwegian waters, Laggan-Tormore gasfield west of Shetland, UK, and Syd Arne oilfield in Denmark.

After completion of the transaction, Dong's oil and gas unit will become a part of the Ineos Upstream business division, and around 440 jobs will be moved to the acquiring company. 

Dong Energy 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.”

The acquisition is subject to regulatory and other third-party approvals and is slated for completion by the third quarter of this year.