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.