Norwegian oil and gas operator DNO ASA has reached an agreement to acquire 100% of its compatriot and rival Sval Energi Group from European private equity firm HitecVision, the parties announced on Friday.
The transaction will command a cash consideration of USD 450 million, based on an enterprise value of USD 1.6 billion. It will be financed with DNO’s cash reserves, which stood at USD 900 million at end-2024, and debt financing.
The acquisition will quadruple DNO’s North Sea production to around 80,000 boepd and increase its global net production by two-thirds to around 140,000 boepd. The company’s 2P reserves will grow to 189 million boe in the North Sea and 423 million boe globally.
“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. Given low unit production costs and limited near-term investment requirements, the Sval Energi portfolio is highly cash generative and will help underpin the development of the numerous discoveries we have made in Norway recently,” said DNO’s Executive Chairman Bijan Mossavar-Rahmani.
Following thr acquisition, the North Sea will become the biggest contributor to DNO’s net production, accounting for around 60% of the total. The balance will proceed mainly from two operated fields in the Kurdistan region of Iraq.
The deal is subject to customary regulatory approvals and is expected to close in mid-2025 with an effective transaction date of January 1, 2025.
Source: theenergyyear.com