Ineos has purchased of Dong Energy's entire oil and gas business in the North Sea for more than £1 billion.

The deal will see the petrochemicals group acquire Ormen Lange, the second largest gas field in Norwegian waters, the Laggan-Tormore oil field located West of Shetland and the Syd Arne oil field in Denmark.

Overall, 440 staff will transfer over to Ineos and work across the portfolio of production, development, exploration and appraisal assets.

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In 2016, Dong produced 100,000 barrels of oil and gas per day in the North Sea. It is also estimated to have around 570 million boe of commercial and potential oil and gas reserves in Denmark, Norway and the UK (West of Shetland).

Jim Ratcliffe, Chairman of Ineos, said Dong Energy's Oil & Gas business is a "natural fit" for the company as it contines to expand its Upstream interests.

"This business is very important to us at this stage of our growth plans and we are delighted with the expertise that comes with it," he said.

"We have been successful in our petro-chemical businesses, focussing on operating our assets safely, efficiently and reliably and we intend to do the same with our oil & gas assets. We are keen on further growth and already see lots of opportunity within this impressive portfolio when it transfers to Ineos."

(LM/MH)