DNO ASA, the Norwegian oil and gas operator, today announced the completion of the acquisition of Sval Energi Group AS from HitecVision for a cash consideration of USD 450 million based on an enterprise value of USD 1.6 billion.

The acquired portfolio comprises 16 producing fields in Norway, quadrupling DNO’s North Sea production to 80,000 barrels of oil equivalent per day (boepd). The Company’s North Sea proven and probable (2P) reserves swell to 189 million barrels of oil equivalent (MMboe), also a fourfold increase. Contingent resources (2C) total 316 MMboe.

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

“The Sval Energi assets provided a rare opportunity to significantly upsize DNO’s North Sea operations and, of course, DNO itself,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani. “And we moved quickly to seal the deal,” he added.

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

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. The combined North Sea 2P reserves and 2C resources equal 15 years of production at the current run rate.

In addition to ferreting out other acquisition targets, the Company is focused like a laser on breaking from the pack and accelerating development and monetization of its numerous discoveries in Norway.

“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,” said Mr. Mossavar-Rahmani. “Compare that to the two to three years, if that, to execute this task in other established basins,” he continued.

DNO last week raised USD 400 million in hybrid bonds towards the acquisition.

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.

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