DNO Norge, a subsidiary of Norwegian oil and gas operator DNO, has struck a deal to acquire stakes in five oil and gas fields in the Norne area of the Norwegian Sea from Vår Energi.  

The transaction, valued at $51m (Nkr556.66m), will enhance DNO’s footprint in the North Sea, establishing a new core area for the company. 

The agreement includes interests in four producing fields: Norne (6.9%), Skuld (11.5%), Urd (11.5%) and Marulk (20%), as well as a 10.5% stake in Verdande, which is under development.  

DNO said this acquisition will add more than eight million barrels of oil equivalent (mboe) in reserves and resources to its portfolio. 

Prior to this acquisition, DNO held stakes in the Marulk field (17%), Alve (32%) and the Andvare development (32%).  

As part of the transaction, DNO Norge will transfer its 22.6% interest in the non-core Ringhorne East field to Vår Energi and will assume decommissioning liabilities for the newly acquired fields. 

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The transaction is expected to increase DNO’s production by approximately 3,000 barrels of oil equivalent per day (boepd) upon closing, with projections to rise above 5,000boepd by 2026 as Verdande starts contributing. 

All fields in the transaction are connected to the Equinor-operated Norne floating production storage and offloading unit, which has been operational since 1997 and has produced more than 900mboe.  

The oil from these fields is exported via tankers, while the gas is transported through the Åsgard Transport System. 

The Norne licence is currently seeking an extension of its operational life until 2036.  

DNO executive chairman Bijan Mossavar-Rahmani said: “This transaction is another step in the rebalancing of our North Sea business on the heels of the acquisition of a 25% stake in [the] UK’s Arran field announced in February.” 

Vår Energi CEO Nick Walker said: “Following the Neptune transaction our stated plan was to dispose of non-core assets to high-grade the portfolio, and we are pleased to have reached an agreement with DNO for the sale of producing field interests in the Norne area and to receive an increased stake in the Ringhorne East unit. This transaction reduces our operating cost and emissions outlook and enhances future value creation.” 

The completion of this acquisition is subject to customary regulatory approvals and is anticipated to close in the third quarter of 2024. 

Last month, Vår Energi announced the discovery of oil in the Balder area in the central North Sea.