Norwegian oil and gas operator DNO has completed the acquisition of stakes in five oil and gas fields, including an operatorship, in the Norne area in the Norwegian Sea from Vår Energi.
Following the closing of the transaction, DNO’s wholly-owned subsidiary DNO Norge holds interests in all producing and under development fields in the greater Norne area, making it a core area for the company on the Norwegian Continental Shelf.
The transaction includes interests in four producing fields, Norne (6.9%), Skuld (11.5%), Urd (11.5%) and Marulk (20% and operatorship), and the ongoing Verdande development (10%).
Prior to the transaction, DNO held interests in Alve (32%), Marulk (17%), and Andvare development (32%) in the Norne area.
The net cash consideration paid by DNO was approximately $24 million. The transfer of DNO’s 22.6% interest in Ringhorne East to Vår Energi, the other element of the swap, has also been completed, DNO said.
The transaction adds more than 8 million barrels of oil equivalent (MMboe) in reserves and resources net to DNO. In terms of production, the acquired assets delivered approximately 3,000 barrels of oil equivalent per day (boepd) in the first half of 2024, expected to rise to above 5,000 boepd in 2026 as the Verdande contribution kicks in.
All fields in the Norne area are tied back to the Equinor-operated Norne FPSO that came onstream in 1997. Oil produced in the area is loaded from the FPSO to tankers for export, while gas is exported by pipeline through the Åsgard Transport System.
Planned hub lifetime extends to 2036. With its expanded area position, DNO has stepped up studies of near-field exploration targets and infill well opportunities.
Coming on the heels of DNO’s acquisition of a 25% stake in UK’s Arran field completed in May, the new Norne assets are expected to support support a ramp-up in DNO North Sea’s production next year, together with the restart of Trym (DNO 50% and operator) in the fourth quarter of 2024 and start-up of Andvare (DNO 32%) in 2025.
Meanwhile, DNO continues its active exploration in the North Sea with the ongoing drilling of the combined Heisenberg appraisal and Angel exploration well (DNO 49%). Followed by Ringand (DNO 20%) and Falstaff (DNO 50% and operator) which are expected to spud in September.
Also, DNO said it will submit one of the largest applications in the company’s history for the upcoming APA 2024 licensing round, with awards expected during the first quarter of 2025.