DNO Exploration UK, a subsidiary of the Norwegian oil and gas operator DNO, has finalised the acquisition of a 25% interest in the Arran field on the UK Continental Shelf.
The acquisition, valued at $75m (Nkr795.49m) with a potential additional $5m contingent on operational targets, was initially announced by DNO in February this year.
After adjustments for interim cash flow from 1 January 2024 to the completion date of 15 May 2024, the final payment was approximately $60m.
Operated by Shell UK with a 44.57% stake, the Arran field was brought on stream in 2021 as a subsea tie-back to the Shell-operated Shearwater A platform.
It is situated in block 23/11a ALL and 23/16c ALL, with its gas transported to the St Fergus Terminal via the Fulmar Gas line, and liquids exported through the Forties Pipeline System to Cruden Bay.
Having recovered more than 41% of its total reserves, with peak production in 2022, Arran is expected to continue production until 2045, according to GlobalData.
The field currently contributes around 2% to the UK's daily output.
DNO's share of production from Arran, mainly gas and some liquids, averaged 3,150 barrels of oil equivalent per day (boepd) during the first four months of 2024, exceeding the initial projection of 2,000–2,500boepd.
Earlier this month, DNO Norge, another subsidiary of DNO, agreed to acquire stakes in five oil and gas fields in the Norne area of the Norwegian Sea from Vår Energi, including interests in four producing fields and a 10.5% stake in the under-development Verdande field.
DNO managing director Chris Spencer said: “Together with our recently announced acquisition of interests in multiple fields in the Norne area offshore Norway, Arran brings balance to our North Sea business by adding production to complement a strong development and exploration portfolio.
“Combined, the two transactions add more than 12 million barrels of oil equivalent and 5,000boepd of production net to DNO, growing to more than 7,000boepd by 2026.”
