DNO, the Norwegian oil and gas operator, has completed the acquisition from Vår Energi of interests in five oil and gas fields, including an operatorship, in the Norne area of the Norwegian Sea.
This acquisition, initially announced in May 2024, positions DNO as a key player in the region.
Following the acquisition, DNO Norge, a wholly owned subsidiary of DNO, now holds interests in all producing and under-development fields within the broader Norne area, establishing it as a central area for the company on the Norwegian Continental Shelf (NCS).
The transaction includes stakes in four producing fields: Norne (6.9%), Skuld (11.5%), Urd (11.5%) and Marulk (20% and operatorship), as well as a 10% stake in the Verdande development.
Prior to this acquisition, DNO held stakes in Alve (32%), Marulk (17%) and the Andvare development (32%) in the Norne area.
The net cash consideration for the transaction, adjusted for cash flow from the effective date of 1 January 2024 to the completion date of 30 August 2024, was approximately $24m (Nkr255.9m). Concurrently, the transfer of DNO’s 22.6% interest in Ringhorne East to Vår Energi was also finalised.
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By GlobalDataThe newly acquired assets contribute more than 8mboe to DNO’s reserves and resources.
In H1 2024, these assets produced around 3,000boepd, with a projected increase to more than 5,000boepd by 2026 as production from the Verdande field begins.
All fields in the Norne area are connected to the Equinor-operated Norne FPSO, which has been in service since 1997. Oil is exported via tankers, while gas is transported through the Åsgard Transport System. The planned hub lifetime is expected to extend until 2036.
With the expanded asset base, DNO is advancing its exploration studies of nearby targets and opportunities for infill drilling. This acquisition follows DNO’s recent purchase of a 25% stake in the UK’s Arran field, completed in May.
The new Norne assets are expected to enhance DNO’s production in the North Sea in 2025, alongside the restart of the Trym field (with a 50% stake and operatorship) in the fourth quarter (Q4) of 2024 and the start-up of Andvare (with a 32% stake) in 2025.
Additionally, DNO continues its active exploration efforts in the North Sea, with ongoing drilling at the Heisenberg appraisal and Angel exploration well (DNO holds a 49% stake). Plans are also under way for drilling the Ringand (DNO holds a 20% stake) and Falstaff (DNO holds a 50% stake and operatorship) wells in September.
DNO is preparing to submit one of the largest applications in its history for the APA 2024 licensing round, with awards expected in Q1 2025.
In the past year, DNO was the third most active exploration driller on the NCS by the number of wells drilled and ranked second in terms of discovered volumes, with an estimated 100mboe net to the company. DNO’s strategy has focused on near-infrastructure exploration and securing significant acreage positions in emerging hotspots.
