DNO signs North Sea gas offtake agreement with Engie

Yahoo

17 hours ago

DNO has entered an offtake agreement with French energy company Engie for its Norwegian North Sea gas production, via DNO's wholly owned Norwegian subsidiaries.
This strategic move follows Norwegian oil and gas operator DNO's acquisition of Sval Energi Group.
The offtake agreement spans the entire output of DNO's Norwegian gas production and offers premium pricing over a four-year term beginning 1 October 2025.
Concurrently, DNO has secured a related offtake financing facility of up to $500m with a major US bank that allows the company to receive payment for up to 270 days of scheduled gas production in advance, based on future sales receivables.
The all-in interest rate for the financing facility is notably lower than conventional reserve-based lending (RBL) terms available to DNO, and importantly, there are no charges for undrawn amounts.
"There are no financial covenants related to the facility," the company stated, highlighting the favourable terms of the agreement.
The proceeds from this facility will serve to replace existing facilities of Sval Energi and for general corporate purposes.
DNO executive chairman Bijan Mossavar-Rahmani said: 'We have received strong interest from buyers to pre-purchase our enlarged North Sea production of 80,000 barrels of oil equivalent per day, split about equally between oil and gas.
'These three-way transactions are made possible because buyers are eager to lock in secure supplies of Norwegian oil and gas and US banks, in particular, have significantly stepped up fossil fuel lending.'
The financial restructuring of the company includes the repayment and non-renewal of more than $600m in RBLs across DNO's North Sea subsidiaries. Additionally, DNO has taken a $300m one-year bank bridge loan.
In a separate development, DNO is engaged in discussions to establish an offtake agreement and a related financing facility for its North Sea oil production, aiming to mirror the favourable terms of its gas production deal.
"DNO signs North Sea gas offtake agreement with Engie" was originally created and published by Offshore Technology, a GlobalData owned brand.
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