DNO ASA is buying 100% of the shares of Sval Energi Group AS from HitecVision for a money consideration of $450 million, based mostly on an enterprise worth of $1.6 billion.
The Sval Energi property are complementary to DNO’s North Sea portfolio and can add scale and diversification to the corporate, it stated in a information launch.
The property will increase DNO’s international web manufacturing by two-thirds to round 140,000 barrels of oil equal per day (boepd) on a 2024 professional forma foundation, and confirmed and possible (2P) reserves by 50 % to 423 million barrels of oil equal (boe).
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The corporate’s North Sea 2P reserves will improve from 48 million boe to 189 million boe post-closing and 2C assets from 144 million boe to 246 million boe, based on the discharge. The acquisition will even flip the North Sea into the largest contributor to the corporate’s web manufacturing, with round 60 % of the entire, with the steadiness coming predominantly from two operated fields within the Kurdistan area of Iraq.
The efficient date of the transaction is January 1, 2025, with anticipated completion mid-year 2025, topic to customary regulatory approvals from the Norwegian Ministry of Vitality, the Norwegian Ministry of Finance and competitors authorities, the corporate stated. A crew of 93 staff can be built-in into the DNO group.
DNO stated it plans to finance the acquisition with current money and different debt financing services obtainable to the corporate. At year-end 2024, the corporate held $900 million in money and $100 million in liquidity below its reserve-based lending facility. Extra funding sources embrace new bonds and RBL debt in addition to offtake-based financing, it famous.
The MLK wind farm can be carved out previous to closing and isn’t a part of the transaction, DNO stated.
“This can be a uncommon alternative to amass a portfolio of high-quality oil and gasoline property on the Norwegian Continental Shelf, and now we have moved quick to seize it,” DNO Govt Chairman Bijan Mossavar-Rahmani stated. “Given low unit manufacturing prices and restricted near-term funding necessities, the Sval Energi portfolio is very money generative and can assist underpin [the] improvement of the quite a few discoveries now we have made in Norway just lately”.
The acquisition will “strengthen [its] presence in core areas on the Norwegian Continental Shelf the place the corporate has unparalleled exploration success since 2020 with 14 discoveries together with Bergknapp/Åre, Bergknapp, Carmen, Cuvette, Heisenberg, Kveikje, Mistral, Norma, Ofelia, Othello, Overly, Ringand, Røver Nord and Røver Sør,” it stated.
DNO stated it plans to capitalize on Sval Energi’s in depth portfolio, which incorporates pursuits in hubs and current tiebacks that present potential improvement synergies with its discoveries.
Sval Energi has non-operated pursuits in 16 producing fields offshore Norway, with web manufacturing of 64,100 boepd in 2024, and 141 million boe in web 2P reserves and 102 million boe of web 2C assets. Its largest property, measured by web 2P reserves, are Nova, Martin Linge, Kvitebjørn, Eldfisk, Maria, Symra and Ekofisk.
With a balanced portfolio break up about equally between liquids and gasoline, there may be extra upside and manufacturing potential from natural development in producing property, fields below improvement, equivalent to Maria Revitalization, Symra, and Dvalin North; and discoveries equivalent to Cerisa, Ringhorne North, and Beta; and redevelopment alternatives equivalent to Albuskjell and West Ekofisk, DNO stated.
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