DNO bulks up Norwegian oil and gas assets with Norne acquisitions, offshore exploration success
(WO) – Norway’s DNO has announced the completion of the acquisition of stakes in five oil and gas fields, including an operatorship, in the Norne area in the Norwegian Sea from Vår Energi ASA.
DNO’s wholly owned subsidiary DNO Norge holds interests in all producing and under development fields in the greater Norne area, making it a core area for the company on the Norwegian Continental Shelf.
The transaction includes interests in four producing fields, Norne (6.9%), Skuld (11.5%), Urd (11.5%) and Marulk (20% and operatorship) plus the ongoing Verdande development (10%). Prior to the transaction, DNO held interests in Alve (32%), Marulk (17%), and Andvare development (32%) in the Norne area.
The transaction adds more than 8 MMboe in reserves and resources net to DNO. In terms of production, the acquired assets delivered approximately 3,000 boed in the first half of 2024, expected to rise to above 5,000 boed in 2026 as the Verdande contribution kicks in.
All fields in the Norne area are tied back to the Equinor-operated Norne FPSO that came onstream in 1997. Oil produced in the area is loaded from the FPSO to tankers for export, while gas is exported by pipeline through the Åsgard Transport System. Planned hub lifetime extends to 2036. With its expanded area position, DNO has stepped up studies of near-field exploration targets and infill well opportunities.
Coming on the heels of DNO’s acquisition of a 25% stake in UK’s Arran field completed in May, the new Norne assets will support a ramp-up in DNO North Sea’s production next year, together with the restart of Trym (DNO 50% and operator) in the fourth quarter of 2024 and start-up of Andvare (DNO 32%) in 2025.
Meanwhile, DNO continues its active exploration in the North Sea with the ongoing drilling of the combined Heisenberg appraisal and Angel exploration well (DNO 49%). Followed by Ringand (DNO 20%) and Falstaff (DNO 50% and operator) which are expected to spud in September.
Last year, DNO was the third most active exploration driller on the Norwegian Continental Shelf in number of wells drilled and ranked second in discovered volumes with an estimated 100 MMboe net to DNO.
Having prioritized near-infrastructure exploration, DNO has been an early mover in acquiring substantial acreage positions in selected areas which have since become hotspots.
