DNO buys Sval Energi in cash for $450 mln, enhancing North Sea portfolio
Norwegian oil group DNO announced on Friday that it had agreed to purchase rival Sval Energi Group, which is focused on the North Sea from private equity group HitecVision. The cash consideration was $450 million based on a $1.6 billion enterprise value.
It said that the transaction would quadruple DNO’s North Sea production, to around 80,000 barrels equivalent per day (boepd), and raise its total output to approximately 140,000 boepd on the basis of pro-forma data for 2024.
The remaining production of DNO is primarily sourced from two fields operated in the Kurdistan Region of Iraq.
The Sval Energi assets complement DNO's North Sea Portfolio and will add scale to the company and diversify its portfolio to further solidify it as a leading independent European oil and gas company, DNO stated in a press release.
DNO said that the acquisition would be financed by existing cash and debt financing options available to it.
Sval Energi has stakes in 16 fields producing offshore Norway with a net production of 64.100 boepd by 2024, divided roughly equally between liquids, and gas.
DNO expects the deal to be completed by mid-year, subject to regulatory approvals. (Reporting and editing by Anna Ringstrom, Terje Solsvik)
(source: Reuters)
