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Yahoo
03-07-2025
- Business
- 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.
Reuters
02-07-2025
- Business
- Reuters
DNO sells four years of Norwegian gas output to Engie
OSLO, July 2 (Reuters) - DNO ( opens new tab has sold its entire gas production over a four-year period from the Norwegian continental shelf to French utility Engie ( opens new tab for an undisclosed sum, the Norwegian company said on Wednesday. It said the deal had been facilitated by a loan from a U.S. bank as U.S. lenders step up funding to the fossil fuel industry, adding it was in discussions over a similar offtake agreement and related financing facility for its North Sea oil production. The offtake agreement takes effect from October 1 and covers DNO's increased gas production after its acquisition of assets from Sval Energi in March, DNO said in a statement. Sval's acquisition quadrupled DNO's North Sea production to about 80,000 barrels of oil equivalent per day, about half of it natural gas. Engie did not immediately respond to a request for comment. While DNO did not disclose the volume of the four-year contract with Engie, last year DNO and Sval Energi produced 1.82 bcm of gas from the Norwegian continental shelf. DNO has entered into a financing facility with an unnamed U.S. bank for up to $500 million, which will be used to repay Sval Energi's debts and for general corporate purposes. "We have received strong interest by buyers to prepurchase our enlarged North Sea production," DNO's Executive Chairman Bijan Mossavar-Rahmani said in a statement.
