DNO to quadruple North Sea production through Sval Energi deal
Norwegian oil and gas operator DNO ASA has agreed to acquire Sval Energi Group AS from HitecVision for $450 in cash, based on an enterprise value of $1.6 billion.
The deal is expected to quadruple DNO’s North Sea production to around 80,000 boe/d and and offers the operator interests in hubs and existing tiebacks for potential development of the company’s recent discoveries, DNO said in a release Mar. 7.
“This is a rare opportunity to acquire a portfolio of high-quality oil and gas assets on the Norwegian Continental Shelf,” said DNO’s executive chairman Bijan Mossavar-Rahmani.
With “low unit production costs and limited near-term investment requirements, the Sval Energi portfolio is highly cash generative and will help underpin development of the numerous discoveries we have made in Norway recently,” he said.
Sval Energi’s assets include non-operated interest in 16 producing fields offshore Norway, with net production of 64,100 boe/d in 2024, 141 MMboe in net 2P reserves, and 102 MMboe of net 2C resources.
The largest assets (measured by net 2P reserves) are Nova, Martin Linge, Kvitebjørn, Eldfisk, Maria, Symra, and Ekofisk. Additional upside is envisioned through organic growth in producing assets, fields under development (Maria Revitalization, Symra, Dvalin North), and discoveries (Cerisa, Ringhorne North, Beta), as well as redevelopment opportunities (Albuskjell, West Ekofisk), DNO said.
DNO expects to absorb a team of 93 employees with the transaction.
Not included in the sale is the MLK wind farm, which will be carved out prior to closing.
Overall, DNO expects the deal to raise its global net production by two thirds to around 140,000 boe/d on a 2024 pro forma basis, increase proven and probable (2P) reserves by 50% to 423 MMboe/d, and raise North Sea 2P reserves to 189 MMboe from 48 MMboe and 2C resources to 246 MMboe from 144 MMboe.
The deal is expected to close mid-year 2025, subject to customary regulatory approvals from the Norwegian Ministry of Energy, the Norwegian Ministry of Finance, and competition authorities.
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.
