INEOS Energy

Overview

This was the first deal completed by INEOS Energy, a new business which incorporates INEOS’ oil and gas business and its wider energy and new energies operations.

The deal represents a strategically important step for INEOS Energy as it progresses a strategy to position the business strongly in the coming energy transition. The sale rebalances the INEOS portfolio in terms of oil and gas and moves the business towards a more operated position. The acquisition (and increased operated position in Denmark) also supports INEOS’ leadership role in the Greensands carbon storage project, on which we are also advising. If successful, the Greensands carbon storage project will contribute significantly to Denmark’s ambitious 70% CO2 reduction target by 2030.

ACHIEVING INEOS’ STRATEGIC GOALS

The deal represents a major step in reshaping our energy business” and “opens up prospects that can be developed in Denmark’s offshore oil and gas sector, supported by a very promising carbon storage project. Commenting on the acquisition, Brian Gilvary, Executive Chairman of INEOS Energy

INEOS now operates both the Syd Arne oil field and the Siri field area in Denmark, and expects to unlock synergies between the two assets. Those synergies and the increase in commodity prices since the deal was signed mean the transaction has already been a great success for INEOS.

HOW DID WE ADD VALUE?

• As a result of our long-standing relationship with INEOS, spanning more than two decades, we have a nuanced understanding of INEOS’ commercial goals and its operating model which was key to the successful delivery of this acquisition. In particular, it enabled us to get to signing within six weeks on a transaction where speed of execution was a priority.
• We were responsible for all of the deal documentation and led on all of the negotiations, deploying specialists from across the firm (including from our Financing, Environment, Competition, IP, Tax and Employment teams) to deliver the full spectrum of advice INEOS needed.
• The transaction was conditional on certain competition approvals and the approval of the Danish Energy Agency. Working closely with their in-house legal team, we guided INEOS through these approval processes, and as a result of careful planning and coordination, all approvals were obtained speedily, allowing the transaction to close in August 2021, just five months after signing.
• We advised on this transaction in the context of INEOS Energy’s wider strategic plans and financing arrangements. In 2021 we also advised INEOS on a comprehensive refinancing of US$5 billion of debt incurred for the acquisition of BP’s global petrochemicals business and the restructuring of a Reserves Based Loan (RBL) to finance INEOS’ oil and gas business.