U.S. oil and gas company Hess Corporation has completed the previously announced sale of its subsidiary Hess Denmark ApS to Ineos E&P.
Hess announced the completion of the deal on Monday. Hess Denmark ApS holds a 61.5 per cent interest in the South Arne field. The transaction is effective from 1 January 2021.
“The sale of our Denmark asset enables us to further focus our portfolio and strengthen our cash and liquidity position”, CEO John Hess said.
“Proceeds will be used to fund our world-class investment opportunity in Guyana”.
In a separate statement on Monday, Executive Chairman of Ineos Energy, Brian Gilvary, said: “I am pleased we have been able to complete the acquisition. The deal represents a major step in reshaping our energy business. It also opens up prospects that can be developed in Denmark’s offshore oil and gas sector, supported by a very promising carbon storage project”.
Hess entered into the agreement to sell its subsidiary Hess Denmark to Ineos E&P for a total consideration of $150 million in March 2021.
The South Arne field produced an average of 5,800 barrels of oil equivalent per day net to Hess in the fourth quarter of 2020. Approximately 60 people were expected to transfer to Ineos following the completion of the deal.
The purchase of Hess’ stake in the South Arne field complements the 36.8 per cent share Ineos already holds and 4.8 per cent in the Ineos-operated Solsort field.
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