The deal is expected to create a combined company worth more than $10bn including debt, Reuters reported citing sources familiar with the matter.
A Dong Energy spokesman was quoted by the publication as saying: "We are in the very early stages of the sales process.
“There will be no sale before the end of the year and it is far too early to speculate over timing and indeed potential buyers."
In October, Dong Energy announced that it was reviewing strategic options regarding the future of the oil & gas business.
It also roped in JP Morgan to conduct a preliminary market assessment of its assets.
Dong Energy confirmed “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.”
The company has oil & gas operations in the waters around Denmark, Norway, the UK (West of Shetland) and the Faroe Islands.
It said that it would run its oil & gas business for cash, which will be used to fund its investments in renewable energy.
In November, Maersk said it is considering different solutions for future development of its oil and oil businesses including separation of entities individually or in combination in the form of joint-ventures, mergers or listings.
Image: Maersk has oil and gas operations in the North Sea. Photo: courtesy of Maersk Group.
