DONG & ConocoPhillips Swap North Sea Licenses

DONG and ConocoPhillips have entered into a deal in which DONG takes over ConocoPhillips' shares in the UK licenses P.911, P.912 and P.967 and the Faroese license F003. At the same time, ConocoPhillips takes over part of DONG's share in the Norwegian license PL273. The deal gives DONG a share in several gas discoveries, including 20 percent of the Laggan discovery north-west of the Shetland Islands, where an appraisal well is just being completed. All the licenses lie in an area in which DONG already has substantial interests.

President Søren Gath Hansen from DONG Exploration and Production says, "The area is one of most promising in Northern Europe with respect to the possibility of finding oil and gas, and besides the well on Laggan we expect this year to participate in three exploration and appraisal wells in this area. The discoveries will make a good contribution to our future gas production but will require new process facilities and pipelines. We are thus talking about a long-term investment – according to present plans, it will be five to ten years before the discoveries go on stream."

When the deals have been approved by the authorities, DONG's shares will be:

UK license P.911: 20 percent
UK license P.912: 5.66 percent
UK license P.967: 22.5 percent
Faroese license F003: 30 percent
Norwegian license PL273: 10 percent