DNO Exploration UK has agreed to acquire a 25% stake in the Arran field on the UK Continental Shelf.
DNO Exploration UK, a subsidiary of Norwegian oil and gas operator DNO, is acquiring the stake from ONE-Dyas E&P.
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The deal is valued at $75m (Nkr795.49m) and includes a possible $5m contingent payment based on operational targets.
With the acquisition, DNO expects to bolster its reserves by adding approximately four million barrels of oil equivalent (mboe), predominantly gas.
Operated by Shell UK, Arran is a conventional gas field situated in block 23/11a ALL and 23/16c ALL.
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It began production in 2021 through a subsea tie-back to the Shearwater A platform, which is also operated by Shell UK.
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By GlobalDataThe field’s gas is transported via the Fulmar Gas line to the St Fergus Terminal and liquids are exported to Cruden Bay through the Forties Pipeline System.
Arran has already recovered 24.16% of its total reserves, with peak production occurring in 2022, and is projected to continue until 2045.
Currently, Arran contributes about 2% to the UK’s daily output.
Besides Shell UK and ONE-Dyas E&P, Viaro Energy is a partner in the Arran field.
DNO’s North Sea portfolio, primarily comprising Norwegian fields, produces 14,200 barrels of oil equivalent per day.
The company anticipates further growth with the development of projects such as Trym Restart, Andvare and Berling.
DNO managing director Chris Spencer said: “Arran fits neatly in our strategy of acquiring bolt-on producing assets as we develop our significant discoveries in Norway.
“The company expects financial synergies between Arran and DNO’s existing position in the UK.”
The transaction is expected to close in the second quarter of 2024, pending regulatory approval.
In September 2023, DNO discovered a significant gas condensate reserve in the Norwegian North Sea.
The discovery was made in PL984 and is estimated to hold recoverable resources of up to 130mboe.
