The purchase of the cash-generating Sval Energy portfolio could be followed by the acquisition of other assets in Norway and elsewhere to realise DNO's growth ambitions.
The deal will quadruple DNO's North Sea production to approximately 80,000 barrels of oil equivalent per day (boe/d) and increase its total production to approximately 140,000 boe/d based on forecast data for 2024.
DNO's remaining production comes mainly from two fields in Iraqi Kurdistan, where the company has been forced to sell oil at a discount due to a legal dispute over the closure of an export pipeline to Turkey in 2022.
The federal government of Iraq, the Kurdistan Regional Government (KRG), and international oil companies operating in Kurdistan are discussing the possible resumption of exports via the pipeline.
Sval has interests in 16 fields off the coast of Norway, including one operated by ConocoPhillips. Ekofisk’s net total production in 2024 is expected to be 64,100 boe/d, with production roughly equally split between liquids and gas.
DNO added that the acquisition will be financed with available cash and other debt financing.
Source: Reuters
