Fossil Energy – Acquisition
Norwegian oil and gas operator DNO has completed the acquisition of stakes in five oil and gas fields, including an operatorship, in the Norne area in the Norwegian Sea from Vår Energi.
Following the closing of the transaction, DNO’s wholly-owned subsidiary DNO Norge holds interests in all producing and under development fields in the greater Norne area, making it a core area for the company on the Norwegian Continental Shelf.
The transaction includes interests in four producing fields, Norne (6.9%), Skuld (11.5%), Urd (11.5%) and Marulk (20% and operatorship), and the ongoing Verdande development (10%).
Prior to the transaction, DNO held interests in Alve (32%), Marulk (17%), and Andvare development (32%) in the Norne area.
The net cash consideration paid by DNO was approximately $24 million. The transfer of DNO’s 22.6% interest in Ringhorne East to Vår Energi, the other element of the swap, has also been completed, DNO said.
The transaction adds more than 8 million barrels of oil equivalent (MMboe) in reserves and resources net to DNO. In terms of production, the acquired assets delivered approximately 3,000 barrels of oil equivalent per day (boepd) in the first half of 2024, expected to rise to above 5,000 boepd in 2026 as the Verdande contribution kicks in.
All fields in the Norne 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 gas is exported by pipeline through the Åsgard Transport System.
Planned hub lifetime extends to 2036. With its expanded area position, DNO has stepped up studies of near-field exploration targets and infill well opportunities.
