DNO Quadruples North Sea Production with Sval Energi Acquisition

(Credit: DNO)

Norwegian oil and gas operator DNO has completed the acquisition of Sval Energi Group from HitecVision, picking up 16 producing fields in Norway and quadrupling its North Sea production to 80,000 barrels of oil equivalent per day (boepd).

DNO acquired Sval Energi for a cash consideration of $450 million based on an enterprise value of $ 1.6 billion.

With the newly acquired portfolio, the company said it had quadrupled its production, reaching 80,000 barrels of oil equivalent per day (boepd).

Also, DNO’s North Sea proven and probable (2P) reserves have risen to 189 million barrels of oil equivalent (MMboe), also a fourfold increase. Contingent resources (2C) total 316 MMboe.

Halvor Engebretsen, Sval Energi’s Chief Executive Officer, will lead the enlarged North Sea business as Managing Director, DNO Norge.                 

Following the acquisition, Norway and the United Kingdom represent nearly 60% of the company’s global production and about 45 percent of its global reserves, with the balance predominantly in the Kurdistan region of Iraq.

Earlier in June, DNO raised $ 400 million in hybrid bonds towards the acquisition.

“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,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani.

Supported by ongoing field development projects with multiple discoveries currently being matured for project sanction, DNO is well placed to grow North Sea production organically in the years ahead, with the combined North Sea 2P reserves and 2C resources equal 15 years of production at the current run rate.

Outside of the North Sea, DNO continues to deliver solid operations. In Kurdistan, DNO has maintained production from its flagship Tawke license (75 percent and operator) at about 80,000 boepd (60,000 boepd net working interest) with minimal new investment. Its Côte d’Ivoire gas assets steadily produce over 3,000 boepd net to DNO. Four development wells and one exploration well are planned in 2025-26.