DNO ASA mentioned Thursday it had signed offtake agreements with Exxon Mobil Corp and Shell PLC for everything of its North Sea oil manufacturing and secured as much as $410 million in “associated offtake financing services”.
“The settlement with ExxonMobil Asia Pacific Pte Ltd, overlaying round half of DNO’s North Sea oil output, has a tenor of two years and a associated revolving credit score facility of as much as $185 million”, the Norwegian oil and gasoline explorer and producer mentioned in a web-based assertion.
“The settlement with Shell Buying and selling and Delivery Co Ltd, overlaying the opposite half of the output, has an preliminary tenor of 1 yr and a associated prepayment facility with a European financial institution of as much as $225 million”.
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DNO govt chair Bijan Mossavar-Rahmani mentioned, “The offtake agreements with ExxonMobil and Shell unlock appreciable financing at very engaging charges, creating alternatives for continued development in nervous markets”.
DNO mentioned it has now “put into place financing services of as much as $910 million tied to its North Sea oil and gasoline manufacturing”.
It earlier secured as much as $500 million in financing from a United States financial institution associated to an offtake settlement with French energy and gasoline utility ENGIE SA for one hundred pc of its Norwegian manufacturing.
“These three-way transactions are made attainable as a result of patrons are wanting to lock in safe provides of Norwegian oil and gasoline and U.S. banks, specifically, have considerably stepped up fossil gasoline lending”, Mossavar-Rahmani mentioned in an announcement July 2.
DNO mentioned of the ENGIE-tied financing, “Proceeds from the offtake financing facility will probably be used to exchange Sval Energi’s related current services in addition to for common company functions”.
Within the second quarter, DNO accomplished its $450 million acquisition of Sval Energi Group AS from HitecVision.
“The acquired portfolio contains 16 producing fields in Norway, quadrupling DNO’s North Sea manufacturing to 80,000 barrels of oil equal per day”, DNO mentioned June 12. “The corporate’s North Sea confirmed and possible reserves swell to 189 million barrels of oil equal (MMboe), additionally a fourfold improve. Contingent assets complete 316 MMboe.
“Following the acquisition, Norway and the UK characterize practically 60 p.c of the corporate’s world manufacturing and about 45 p.c of its world reserves, with the steadiness predominantly within the Kurdistan area of Iraq”.
DNO added, “Supported by ongoing discipline growth initiatives with a number of discoveries at the moment being matured for mission sanction, DNO is nicely positioned to develop North Sea manufacturing organically within the years forward. The mixed North Sea 2P reserves and 2C assets equal 15 years of manufacturing on the present run charge”.
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