DONG Energy to exit oil and gas business

DONG Energy to exit oil and gas business

by Big Mac

offshore-wind-farm

DONG Energy has announced plans to quit the oil and gas industry to focus solely on offshore wind.

It is offloading its entire North Sea oil and gas assets, which are now up for sale.

The Danish firm’s decision follows similar steps made by European utilities E.ON and RWE.

Henrik Poulsen, CEO and President of DONG Energy said: “We have decided to initiate a process with the aim of ultimately exiting from our oil and gas business.

“This should be seen in the context of DONG Energy’s strategic transformation towards becoming a global leader in renewables and a wish to ensure the best possible long term development opportunities for our oil and gas business.”

The company saw its wind business make a huge profit in the first half of 2016, overtaking oil and gas.

However, it expects the fossil fuel arm to be “cash flow positive” in 2016, a year earlier than previously expected.

It currently has seven large offshore wind farms under construction, totalling 4.4GW.