Denmark's Dong Energy has reached an agreement to divest its oil and gas business to privately held chemicals group INEOS, saying it has reached its goal announced in November of transforming itself "into a leading, pure play renewables company."
Copenhagen-based Dong Energy says the deal means "an unconditional payment" of $1.05 billion on a cash and debt-free basis.
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Dong Energy said Wednesday the deal also includes contingent payments of $150 million related to a western Denmark plant and up to $100 million subject to the development of an oil and gas field off Shetland.
The deal is subject to regulatory approvals.
The Danish government has a 50.1-percent share in Dong Energy.