DNO completes acquisition of Sval Energi from HitecVision
The deal, which carries a cash consideration of $450m (NKr4.48bn) based on the enterprise value of $1.6bn, will boost DNO's presence in the North Sea.
In March, DNO signed an agreement to acquire 100% of the shares of Sval Energi Group.
The acquisition quadruples DNO's North Sea production to 80,000 barrels of oil equivalent per day (boepd) and increases its proven and probable (2P) reserves to 189 million barrels of oil equivalent (mboe), a fourfold increase.
Additionally, the company's contingent resources (2C) now total 316mboe.
With this strategic move, Norway and the UK now account for nearly 60% of DNO's global production and around 45% of its global reserves.
The remainder is largely concentrated in the Kurdistan region of Iraq.
DNO's executive chairman Bijan Mossavar-Rahmani said: 'The Sval Energi assets provided a rare opportunity to significantly upsize DNO's North Sea operations and, of course, DNO itself. And we moved quickly to seal the deal.'
Halvor Engebretsen, former CEO of Sval Energi, will lead the expanded North Sea business as managing director of DNO Norge.
Backed by ongoing field development projects and several discoveries in the pipeline for project approval, DNO stated that it is strategically positioned to enhance its North Sea production in the coming years.
The combined 2P reserves and 2C resources in the North Sea equal 15 years of production at the current output levels, added the company.
The company stated that it is also actively seeking additional acquisition opportunities and is committed to expediting the development and monetisation of its discoveries in Norway.
Rahmani added: 'It takes most Norwegian oil companies a ridiculously long eight to ten years to bring a discovery to first production, even with simple subsea tiebacks to existing platforms. Compare that to the two to three years, if that, to execute this task in other established basins.'
Last week, to fund the acquisition, DNO raised $400m through hybrid bonds.
In Kurdistan, DNO has maintained production from its Tawke licence at approximately 80,000boepd, with minimal new investment. It holds a 75% interest and operatorship of the licence.
Its Côte d'Ivoire gas assets consistently produce more than 3,000boepd net.
DNO is planning four development wells and one exploration well in the years 2025–26.
"DNO completes acquisition of Sval Energi from HitecVision" was originally created and published by Offshore Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 hours ago
- Yahoo
DNO signs North Sea gas offtake agreement with Engie
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. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
CNBC
2 days ago
- CNBC
London stock market could weather its biggest blow yet if AstraZeneca exits
Pressure is piling on London's stock exchange, with reports that British pharma giant AstraZeneca may move its listing to the U.S. delivering yet another blow this week. CEO Pascal Soriot is considering moving the company's stock listing from London to the U.S., British newspaper The Times reported on Tuesday afternoon, citing anonymous sources. Soriot's frustrations with the U.K.'s regulatory environment — particularly rules around new medicine approvals and drug pricing systems — are said to be driving the move. AstraZeneca declined to comment on the Times report. The company's exit from the U.K. market would spark a major index re-weighting, given AstraZeneca is the most valuable business listed on London's FTSE 100. AstraZeneca's market cap was £161.2 billion ($221.1 billion) as of Tuesday's closing price, according to LSEG data. AstraZeneca's potential transatlantic move would add to concerns around London's weakening status as a global financial hub. A number of companies have delisted from the London market or reconsidered plans to float shares in the city over the past year. Toni Meadows, head of investment at London's BRI Wealth Management, labeled AstraZeneca's rumored listing considerations as "disappointing" for the U.K. equity market — but he conceded that "it is not surprising" given that it would form the latest development in a wider established trend. Earlier this year, reports emerged that Chinese fast fashion giant Shein was looking to list in Hong Kong instead of London, when it goes public. Last week, news agency Reuters reported that the company was planning to file confidentially for a Hong Kong IPO. Metals investor Cobalt Holdings, meanwhile, confirmed to CNBC last month that it had scrapped plans for a London IPO, while British fintech giant Wise announced in June that it was moving its primary listing from London to New York. Kristo Kaarmann, Wise's CEO and co-founder, said in a statement at the time that the move would help raise awareness of the company in the U.S., while giving the firm better access to "the world's deepest and most liquid capital market." Companies listed in London have historically had much lower valuations than their Wall Street counterparts. Research from British investment manager Rathbones last year showed that the forward price-to-earnings ratio for U.K. stocks was 32% lower than those listed in the U.S. on a like-for-like basis. On the flipside, the Financial Times reported last week that Norwegian software giant Visma had chosen London for its upcoming debut on the public market. "Large and important companies like AstraZeneca are seeking a valuation uplift from exposure to a wider investor base and they will get that from moving to a US listing," BRI's Meadows told CNBC via email on Wednesday. "The trend to move listing, or the stream of takeovers for UK listed stocks, highlights value in the UK equity market, but it does nothing to encourage a new supply of companies listing here to support the future standing of the index in a Global context," Meadows added. Claire Trachet, founder of M&A advisory Trachet, said AstraZeneca shifting its listing to New York would represent "a memorable loss" for the London Stock Exchange. "Given the complexity of the company, this isn't simply because of liquidity or valuation advantages often cited by departing firms, rather a trifecta of underperforming capital markets, regulatory constraints, and misaligned incentives that make it harder to scale and reward innovation at home," she told CNBC by email. Trachet added that London-listed companies with a combined value in excess of $100 billion had already made the move to New York in recent years — and AstraZeneca's departure alone would more than double that figure. "The potential move makes it painfully clear to global markets that the UK is losing its edge on the needs of world-class, scale-driven companies," she said. "This isn't an isolated story — and that's the biggest issue. It's part of a broader shift, where founders and boards are increasingly looking to the US for deeper capital, stronger support, and a more ambitious investor base." Tom Bacon, a London-based partner at global law firm BCLP — which has a division dedicated to M&A and corporate finance — labeled reports of AstraZeneca's Soriot's desire to shift away from London "very worrying." "I think this should sound the alarm for the UK government that they need to do more both to support the city and our stock market together with our critical industries like life sciences and pharmaceuticals," he said. Dan Coatsworth, investment analyst at AJ Bell, on Wednesday said that AstraZeneca's reported plans appeared to be driven by business needs rather than chasing a higher valuation — but he added that moving the company's listing across the Atlantic "won't be an easy move to pull off." "Unlike many other UK market 'defectors' with a dominant US shareholder base like CRH and Flutter, AstraZeneca has a more geographically diverse pool of investors," he explained in an email. However, Coatsworth noted that AstraZeneca generates around 42% of its sales from the U.S., and already has plans to increase its operational footprint in the country. Earlier this year, CEO Soriot told CNBC AstraZeneca was "very committed to the United States," where the company has two large research and development centers. AJ Bell's Coatsworth told CNBC that AstraZeneca's CEO could also see a full U.S. stock listing as a "stepping stone to receiving better treatment Stateside." European pharmaceutical companies are facing uncertainty around their future in the American market, where U.S. President Donald Trump has threatened to impose sector-specific tariffs on drug imports. While the industry was exempted from Trump's so-called reciprocal tariffs plans when they were unveiled in April, the White House leader has since placed the sector under investigation by the U.S. Commerce Department, warned tariffs on pharma are "coming soon," and signed an executive order directing medicine manufacturers to lower the price of some drugs in line with costs paid overseas.
Yahoo
2 days ago
- Yahoo
DNO Secures North Sea Gas Offtake and Related USD 500 Million Financing Facility; Adds Arrows to its Quiver
Oslo, 2 July 2025 – DNO ASA, the Norwegian oil and gas operator, today announced that the Company's wholly-owned Norway operating subsidiaries have entered into an offtake agreement with France's ENGIE SA for DNO's Norwegian gas production and secured a related offtake financing facility with a major US bank for up to USD 500 million. The offtake agreement covers the entirety of DNO's Norwegian gas production post acquisition of Sval Energi Group AS, offers premium pricing and has a tenor of four years as from 1 October 2025. Related to the agreement, DNO has entered into an offtake financing facility with a US bank for up to USD 500 million. Under the facility, DNO is paid, by the bank, the value of up to 270 days of scheduled gas production based on future gas sales receivables. The all-in interest rate for drawn amounts under the facility is significantly below conventional reserve-based lending (RBL) terms available to DNO, with no charges for undrawn amounts. There are no financial covenants related to the facility. Proceeds from the offtake financing facility will be used to replace Sval Energi's similar existing facilities as well as for general corporate purposes. 'We have received strong interest by buyers to prepurchase our enlarged North Sea production of 80,000 barrels of oil equivalent per day split about equally between oil and gas,' said DNO's Executive Chairman Bijan Mossavar-Rahmani. '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,' he explained. Given availability of attractive offtake financing terms, DNO has repaid and will not renew over USD 600 million in RBLs across its North Sea subsidiaries. In addition, the Company has borrowed USD 300 million under a one-year bank bridge loan 'to add more arrows to our quiver,' according to Mr. Mossavar-Rahmani. Separately, DNO is in discussions to establish an offtake agreement and related financing facility on comparable terms for its North Sea oil production. – For further information, please contact:Media: media@ – DNO ASA is a leading Norwegian oil and gas operator active in the Middle East, the North Sea and West Africa. Founded in 1971 and listed on the Oslo Stock Exchange, the Company holds stakes in onshore and offshore licenses at various stages of exploration, development and production in the Kurdistan region of Iraq, Norway, the United Kingdom, Côte d'Ivoire and Yemen. More information is available at This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading in to access your portfolio
