DNO acquires portfolio of producing assets boosting position in Norne Area offshore Norway

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 %), Skuld (11.5 %), Urd (11.5%) and Marulk (20 %), plus the ongoing Verdande development (10.5 %). Prior to the transaction, DNO held interests in Marulk (17 %), Alve (32 %) and the ongoing Andvare development (32 %).

The cash consideration is US$51 million. In addition, the Company will transfer its stake in Ringhorne East (22.6 %) located in a non-core area for DNO to Vår Energi.

The transaction adds more than 8 million boe 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 3000 boe/d to DNO’s output at closing, rising to above 5000 boe/d 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 % stake in UK’s Arran field announced in February,” said Executive Chairman Bijan Mossavar-Rahmani.

Having produced more than 900 million boe 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 3Q24, subject to authorities' approval.

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/08052024/dno-acquires-portfolio-of-producing-assets-boosting-position-in-norne-area-offshore-norway/