DNO to acquire Sval Energi, quadrupling North Sea oil output

Norwegian oil company DNO has reached an agreement to acquire Sval Energi from HitecVision for a cash consideration of $450 million (USD) based on an enterprise value of $1.6 billion. The Sval Energi assets are complementary to DNO’s North Sea portfolio and will add scale and diversification to solidify the company’s position as a top producer in the Norwegian Continental Shelf.

“This is a rare opportunity to acquire a portfolio of high-quality oil and gas assets on the Norwegian Continental Shelf,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani, “and we have moved fast to capture it.” He continued that “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,” he added.

Transaction highlights

• DNO’s global net production will increase by two thirds to around 140,000 barrels of oil equivalent per day (boed) on a 2024 pro forma basis and proven and probable (2P) reserves by 50 percent to 423 million barrels of oil equivalent (boe)
• North Sea 2P reserves will increase from 48 million boe to 189 million boe post-closing and 2C resources from 144 million boe to 246 million boe
• North Sea production will quadruple to around 80,000 boed, propelling DNO to the upper ranks of Norwegian Continental Shelf players
• The North Sea will become the biggest contributor to DNO’s net production with some 60 percent of the total (with the balance coming predominantly from two operated fields in the Kurdistan region of Iraq)
• Allows DNO to capitalize on Sval Energi’s extensive portfolio which includes interests in hubs and existing tiebacks that provide potential development synergies with DNO’s discoveries

The Sval Energi acquired assets include a non-operated interest in 16 producing fields offshore Norway, with net production of 64,100 boepd in 2024, and 141 million boe in net 2P reserves and 102 million boe of net 2C resources.

Image: DNO