DNO to acquire Sval Energi for $1.6bn, expanding North Sea portfolio

DNO, a Norwegian lipid and state operator, has announced the signing of an statement to get each shares of Sval Energi Group from HitecVision for an endeavor worth of $1.6bn (Nkr17.24bn).

The deal, which includes a currency information of $450m, is acceptable to heighten DNO's North Sea assets and bolster its presumption arsenic a “leading” autarkic lipid and state company.

DNO plans to concern the acquisition with existing cash, indebtedness financing facilities, caller enslaved and reserve-based lending debt, arsenic good arsenic offtake-based financing.

Sval Energi holds non-operated interests successful 16 producing fields offshore Norway, with a nett accumulation of 64,100 barrels of lipid equivalent per time (boepd) arsenic of 2024.

Some of the largest assets successful presumption of nett proven and probable (2P) reserves are Nova, Martin Linge, Eldfisk and Ekofisk.

The company’s portfolio includes 141 cardinal barrels of lipid equivalent (mboe) successful nett 2P reserves and 102mboe successful nett contingent (2C) resources.

DNO enforcement president Bijan Mossavar-Rahmani said: “This is simply a uncommon accidental to get a portfolio of high-quality lipid and state assets connected the Norwegian Continental Shelf (NCS) and we person moved accelerated to seizure it.

“Given debased portion accumulation costs and constricted near-term concern requirements, the Sval Energi portfolio is highly currency generative and volition assistance underpin improvement of the galore discoveries we person made successful Norway recently.”

The woody is expected to summation DNO's nett accumulation by two-thirds to astir 140,000boepd connected a 2024 pro forma basis, with 2P reserves rising by 50% to 423mboe.

Furthermore, North Sea accumulation for DNO volition quadruple to astir 80,000boepd, surpassing its accumulation successful the Kurdistan portion of Iraq.

The company's 2P reserves successful the North Sea volition summation from 48mboe to 189mboe, portion 2C resources volition turn from 144mboe to 246mboe.

The transaction is besides expected to bring taxation synergies, wide and administrative savings, and reduced borrowing costs, improving DNO's fiscal position.

DNO's palmy exploration way grounds connected the NCS, with 14 discoveries since 2020, volition beryllium further strengthened by the acquisition.

Completion of the transaction is anticipated by mid-year 2025, pending customary regulatory approvals from the Norwegian Ministry of Energy.

In December 2024, DNO announced an lipid find successful licence PL1086 offshore Norway, indicating the anticipation of a caller play successful the area.

"DNO to get Sval Energi for $1.6bn, expanding North Sea portfolio" was primitively created and published by Offshore Technology, a GlobalData owned brand.