DNO International has reached an agreement to acquire Norwegian E&P independent Sval Energi Group from owner HitecVision for $450 million.
“This is a rare opportunity to acquire a portfolio of high-quality oil and gas assets on the Norwegian Continental Shelf, and we have moved fast to capture it," said Bijan Mossavar-Rahmani, DNO’s executive chairman. “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.”
Subject to approvals from the Norwegian government and competition authorities, the transaction should close in mid-2025. It will lift DNO’s global net production by two-thirds to about 140,000 boe/d and raise its proven and probable (2P) reserves in the North Sea from 48 MMboe to 189 MMboe.
Since 2020, DNO has participated in 14 discoveries offshore Norway: Bergknapp/Åre, Bergknapp, Carmen, Cuvette, Heisenberg, Kveikje, Mistral, Norma, Ofelia, Othello, Overly, Ringand, Røver Nord and Røver Sør. These have delivered net contingent (2C) resources of about 100 MMboe.
(Earlier this week, Equinor discovered gas-condensate in the PL1119 Mistral exploration well 6406/6-7S in the southern Norwegian sea.)
Sval Energi’s portfolio comprises interests in producing hubs and tiebacks that could bring development synergies with some of DNO’s discoveries. Sval has shares in 16 producing fields (net 64,100 boe/d in total in 2024). The largest fields are Nova, Martin Linge, Kvitebjørn, Eldfisk, Maria, Symra and Ekofisk.
(Earlier this week, Harbour Energy said it expects to start production this summer from its Maria Phase 2 oil and gas project in the Norwegian Sea.)
DNO sees additional upside and production potential from fields under development (Maria Revitalization, Symra, Dvalin North); the Cerisa, Ringhorne North, Beta discoveries; and redevelopment opportunities (Albuskjell, West Ekofisk).
Sval’s 93 employees will be integrated into the DNO organization. The company’s interest in the onshore MLK wind farm in Finland is not part of the transaction.
Late last year, OKEA and DNO Norge agreed to swap interests in two licenses offshore Norway where exploration drilling is imminent. Pending approval, DNO will transfer 10% of its share in PL 1119 containing the Mistral prospect in the Norwegian Sea, in exchange taking 10% of OKEA’s interest in PL 1109 containing the Horatio prospect.
