DNO ASA has signed an settlement with Var Energi ASA to amass the Norwegian compatriot’s minority pursuits in 5 fields within the Norwegian Sea, 4 of that are producing, for $51 million.
The property would give over eight million barrels of oil equal reserves and assets to DNO, which is shopping for the stakes by way of subsidiary DNO Norge AS, DNO mentioned in a press launch Wednesday.
“The transaction creates a brand new core space for DNO within the North Sea as DNO will maintain pursuits in all producing and below growth fields within the higher Norne space, together with the Norne hub”, DNO mentioned.
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“The transaction consists of an curiosity in 4 producing fields, Norne (6.9 p.c), Skuld (11.5 p.c), Urd (11.5 p.c) and Marulk (20 p.c), plus the continued Verdande growth (10.5 p.c)”, the announcement said. “Previous to the transaction, DNO held pursuits in Marulk (17 p.c), Alve (32 p.c) and the continued Andvare growth (32 p.c)”.
Anticipated to shut within the third quarter, the transaction would end in DNO elevating its stake in Var Energi-operated Marulk to 37 p.c. Equinor ASA holds a 33 p.c stake within the subject, whereas the opposite associate is PGNiG Upstream Norway AS with a 30 p.c stake.
Marulk, which sits 25 kilometers (15.5 miles) southwest of Norne at a water depth of 370 meters (1,213.9 ft), began producing 2012. Together with the Alve, Skuld and Urd fields, Marulk makes use of a subsea template tied again to the Norne floating manufacturing, storage and offloading (FPSO) vessel.
In Norne, which is situated 80 km (49.7 miles) north of the Heidrun subject at a water depth of 380 meters (1,246.7 ft), Equinor ASA is the operator with a 39.1 p.c stake, whereas 54 p.c is held by Petoro AS. It was put onstream 1997.
Skuld, operated by majority state-owned Equinor with a 64 p.c stake, got here on-line 2013. It’s 20 km (12.4 miles) north of Norne and has a water depth of 340 meters (1,115.5 ft). The opposite co-venturer is Petoro with a 24.5 p.c stake.
Urd, which sits 5 km (3.1 miles) northeast of Norne at a water depth of 380 meters, began manufacturing 2005. Equinor can be the operator with a 64 p.c stake, whereas Petoro owns 24.5 p.c.
The non-producing Verdande was found 2017 at 10 km (6.2 miles) north of Norne at a water depth of 380 meters. Operator Equinor (59.1 p.c) obtained authorities approval for the event plan final 12 months. The plan entails putting in a subsea template tied again to FPSO Norne. The opposite companions are Petoro (22.4 p.c), Aker BP ASA (seven p.c) and PGNiG (0.8 p.c).
As a part of the deal, DNO would switch its 22.6 p.c stake within the producing Ringhorne East subject to Var Energi. After the completion of the transaction, Var Energi will enhance its stake to 92.58 p.c, whereas Kistos Power (Norway) AS will retain 7.5 p.c.
The North Sea subject, which sits six km (3.7 miles) northeast of the Balder subject at a water depth of 130 meters (426.5 ft), began manufacturing 2006. It has remaining reserves of 1.5 million cubic meters (53 million cubic ft) of oil equal, in keeping with info on authorities web site Norskpetroleum.no.
“By way of manufacturing, the transaction (internet to DNO, together with divestment of Ringhorne East) is estimated so as to add 3,000 barrels of oil equal per day (boepd) to DNO’s output at closing, rising to above 5,000 boepd in 2026 because the Verdande contribution kicks in”, DNO mentioned.
“This transaction is one other step within the rebalancing of our North Sea enterprise on the heels of the acquisition of a 25 p.c stake in UK’s Arran subject introduced in February”, DNO govt chair Bijan Mossavar-Rahmani mentioned in an announcement.
To contact the writer, electronic mail jov.onsat@rigzone.com
