DONG Energy concludes strategic review of E&P business
In connection with the announcement of DONG Energy’s IPO roadmap on 18 September 2015, it was announced that DONG Energy would undertake a strategic review of the Exploration & Production (E&P) business. DONG Energy has now concluded the strategic review with the following key conclusions:
- DONG Energy confirms its intention to build a world-class clean energy company with a portfolio based on leading competences in offshore wind, bioenergy and green distribution and customer solutions.
- DONG Energy has decided to keep E&P as part of the planned IPO. Going forward, the cash flows from E&P will be part of funding DONG Energy’s investments in renewable energy.
- The E&P business consists of a high-quality portfolio of oil and gas assets in Denmark, Norway and the UK with attractive lifting costs.
- In line with the rest of the industry, E&P needs to adapt to the significant decline in oil and gas prices. Actions are being undertaken to de-risk the E&P portfolio and focus on cash generation within the new market reality.
- With this revision of DONG Energy’s portfolio strategy, investments to support future growth will be focused on renewable energy. This will further reinforce DONG Energy’s position as a global leader in renewables. …