DNO ASA has accomplished the acquisition of stakes in 5 oil and gasoline fields within the Norne space of the Norwegian Sea from Var Energi ASA.
The transaction contains pursuits in 4 producing fields, Norne (6.9 %), Skuld (11.5 %), Urd (11.5 %) and Marulk (20 % and operatorship), in addition to the continuing Verdande improvement (10 %), DNO stated in a brand new launch.
As a part of the transaction, DNO transferred its 22.62 % curiosity within the Ringhorne East unit to Vår Energi, taking Vår Energi’s curiosity to 92.6 %.
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DNO stated its wholly owned subsidiary DNO Norge AS now holds pursuits in all producing and fields underneath improvement within the larger Norne space, making it a core space for the corporate on the Norwegian Continental Shelf. Previous to the transaction, DNO held pursuits in Alve (32 %), Marulk (17 %), and Andvare improvement (32 %) within the Norne space.
DNO paid web money consideration of roughly $24 million, “adjusting for money circulation between efficient transaction on 1 January 2024 and completion on 30 August 2024,” it stated.
DNO famous that the transaction provides greater than eight million barrels of oil equal (MMboe) in reserves and assets web to the corporate. By way of manufacturing, the acquired property delivered roughly 3,000 barrels of oil equal per day (boepd) within the first half of 2024, anticipated to rise to over 5,000 boepd in 2026 because the Verdande contribution kicks in.
All fields within the Norne space are tied again to the Equinor-operated Norne floating manufacturing, storage, and offloading unit (FPSO) that got here onstream in 1997, in line with the discharge. Oil produced within the space is loaded from the FPSO onto tankers for export, whereas gasoline is exported by pipeline by way of the Åsgard Transport System. The hub lifetime extends to 2036.
With its expanded space place, DNO stated it has “stepped up research of near-field exploration targets and infill nicely alternatives”.
Approaching the heels of DNO’s acquisition of a 25 % stake in UK’s Arran subject accomplished in Might, the brand new Norne property will help a ramp-up in DNO North Sea’s manufacturing subsequent 12 months, along with the restart of Trym within the fourth quarter and the start-up of Andvare in 2025, the corporate said.
Var Energi stated in a separate assertion that the transaction is according to its technique to “get rid of non-core property to high-grade the portfolio, supporting additional development and long-term worth creation within the firm’s core hub areas”.
The assigned property are late life, and the transaction will enhance the corporate’s unit working prices and emissions depth outlook. DNO will assume the related decommissioning liabilities for the Norne space subject pursuits, Var Energi added.
Vår Energi famous that the web remaining proved plus possible (2P) reserves for the fields was 7 million boe on the finish of 2023.
DNO stated it continues its lively exploration within the North Sea with the continuing drilling of the mixed Heisenberg appraisal and Angel exploration nicely,adopted by Ringand and Falstaff, that are anticipated to spud in September.
DNO added that it’s set to submit “one of many largest functions within the firm’s historical past for the upcoming APA 2024 licensing spherical, with awards anticipated throughout the first quarter of 2025”.
Final 12 months, the corporate stated it was the third most lively exploration driller on the Norwegian Continental Shelf in variety of wells drilled and ranked second in found volumes with an estimated 100 MMboe web to DNO.
To contact the creator, e mail rocky.teodoro@rigzone.com
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