13-06-2025
DNO completes acquisition of Sval Energi from HitecVision
Norwegian oil and gas operator DNO has completed the 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.
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