Latest news with #SvalEnergi
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.
Yahoo
02-07-2025
- Business
- 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
Yahoo
13-06-2025
- Business
- Yahoo
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. 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.
Yahoo
10-03-2025
- Business
- Yahoo
DNO to acquire Sval Energi for $1.6bn, expanding North Sea portfolio
DNO, a Norwegian oil and gas operator, has announced the signing of an agreement to acquire all shares of Sval Energi Group from HitecVision for an enterprise value of $1.6bn (Nkr17.24bn). The deal, which includes a cash consideration of $450m, is set to enhance DNO's North Sea assets and bolster its position as a 'leading' independent oil and gas company. DNO plans to finance the acquisition with existing cash, debt financing facilities, new bond and reserve-based lending debt, as well as offtake-based financing. Sval Energi holds non-operated interests in 16 producing fields offshore Norway, with a net production of 64,100 barrels of oil equivalent per day (boepd) as of 2024. Some of the largest assets in terms of net proven and probable (2P) reserves are Nova, Martin Linge, Eldfisk and Ekofisk. The company's portfolio includes 141 million barrels of oil equivalent (mboe) in net 2P reserves and 102mboe in net contingent (2C) resources. DNO executive chairman Bijan Mossavar-Rahmani said: 'This is a rare opportunity to acquire a portfolio of high-quality oil and gas assets on the Norwegian Continental Shelf (NCS) and we have moved fast to capture it. 'Given 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.' The deal is expected to increase DNO's net production by two-thirds to approximately 140,000boepd on a 2024 pro forma basis, with 2P reserves rising by 50% to 423mboe. Furthermore, North Sea production for DNO will quadruple to around 80,000boepd, surpassing its production in the Kurdistan region of Iraq. The company's 2P reserves in the North Sea will increase from 48mboe to 189mboe, while 2C resources will grow from 144mboe to 246mboe. The transaction is also expected to bring tax synergies, general and administrative savings, and reduced borrowing costs, improving DNO's financial position. DNO's successful exploration track record on the NCS, with 14 discoveries since 2020, will be further strengthened by the acquisition. Completion of the transaction is anticipated by mid-year 2025, pending customary regulatory approvals from the Norwegian Ministry of Energy. In December 2024, DNO announced an oil discovery in licence PL1086 offshore Norway, indicating the possibility of a new play in the area. "DNO to acquire Sval Energi for $1.6bn, expanding North Sea portfolio" 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.
