DNO Acquires Portfolio of Producing Assets Boosting Position in Norne Area Offshore Norway
May 08 2024 - 1:00AM
DNO Acquires Portfolio of Producing Assets Boosting Position in
Norne Area Offshore Norway
Oslo, 8 May 2024 – DNO ASA, the Norwegian oil and gas operator,
today announced that the Company’s wholly-owned subsidiary DNO
Norge AS has entered into an agreement to acquire stakes in five
oil and gas fields in the Norne area in the Norwegian Sea from Vår
Energi ASA.
The transaction creates a new core area for DNO in the North Sea
as DNO will hold interests in all producing and under development
fields in the greater Norne area, including the Norne
hub.
The transaction includes an interest in four producing fields,
Norne (6.9 percent), Skuld (11.5 percent), Urd (11.5 percent) and
Marulk (20 percent), plus the ongoing Verdande development (10.5
percent). Prior to the transaction, DNO held interests in Marulk
(17 percent), Alve (32 percent) and the ongoing Andvare development
(32 percent).
The cash consideration is USD 51 million. In addition, the
Company will transfer its stake in Ringhorne East (22.6 percent)
located in a non-core area for DNO to Vår Energi.
The transaction adds more than eight million barrels of oil
equivalent (MMboe) in reserves and resources net to DNO. In terms
of production, the transaction (net to DNO, including divestment of
Ringhorne East) is estimated to add 3,000 barrels of oil equivalent
per day (boepd) to DNO’s output at closing, rising to above 5,000
boepd in 2026 as the Verdande contribution kicks in.
“This transaction is another step in the rebalancing of our
North Sea business on the heels of the acquisition of a 25 percent
stake in UK’s Arran field announced in February,” said Executive
Chairman Bijan Mossavar-Rahmani.
Having produced more than 900 MMboe to date, all fields in the
area are tied back to the Equinor operated Norne FPSO that came
onstream in 1997. Oil produced in the area is loaded from the FPSO
to tankers for export, while the gas is exported by pipeline
through the Åsgard Transport System. The Norne license has applied
for lifetime extension until 2036.
The effective date of the transaction is 1 January 2024 and the
transaction is expected to close in the third quarter of 2024,
subject to authorities' approval.
–
For further information, please contact:
Media: media@dno.no
Investors: investor.relations@dno.no
–
DNO ASA is a Norwegian oil and gas operator active in the Middle
East, the North Sea and West Africa. Founded in 1971 and listed on
the Oslo Stock Exchange, the Company holds stakes in onshore and
offshore licenses at various stages of exploration, development and
production in the Kurdistan region of Iraq, Norway, the United
Kingdom, Côte d’Ivoire, Netherlands and Yemen.
This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
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