DONG Energy has divested yet more fossil fuel projects from its fleet of energy projects, this time five oil and gas fields in Norwegian waters.
The Danish integrated energy company is known primarily these days for its mammoth offshore wind projects, but it is also Denmark’s largest energy company, providing oil and gas to millions. As of 2015, the company’s capital was made up of 75% wind power, 3% bioenergy & thermal power, 13% distribution & customer service, and 9% oil & gas.
That last figure, however, will likely have decreased somewhat, following DONG Energy’s announcement that it had completed the divestment of its ownership in five Norwegian oil and gas fields to independent oil and gas company Faroe Petroleum.
According to Faroe Petroleum, the total consideration is worth $70.2 million, and includes oil and gas fields in the southern part of the Norwegian North, specifically, fields Trym, Oselvar, Tambar (including Tambar East), and Ula. Faroe Petroleum expects completion of the acquisition to take place by the end of the year.
“It is very satisfying that we have reached an agreement with Faroe in respect of these five assets,” said David Cook, Executive Vice President in DONG Energy. “This transaction is an important step towards optimizing our oil and gas asset portfolio with a focus on high quality, low-cost assets.”
DONG Energy has made several moves of late to consolidate and optimize its holdings. A few days before 2014 came to a close, DONG Energy announced that it had completed the divestment of all onshore wind projects, in favor of focusing on offshore wind. While only a few months ago, DONG Energy announced that it had divested its Danish gas distribution business to Energinet.dk, in a move required for DONG Energy to move ahead with its wildly successful initial public offering (IPO).