Vår Energi is selling its Norne area assets in the Norwegian Sea to DNO Norge and upping its stake in DNO’s Ringhorne East unit in the central North Sea, the companies announced May 8.
Vår Energi is selling the Norne producing assets for $51 million after tax and 22.6% interest in Ringhorne East in a deal effective Jan. 1, 2024.
Vår said selling the late life Norne area assets will improve the company’s unit operating costs and emissions intensity outlook. The assets include 6.9% interest in Norne, 11.5% in Urd, 11.5% in Skuld, 20% in Marulk and 10.49% in the Verdande project. They contributed about 3,000 boe/d net to Vår in the most recent quarter. Net remaining proved plus probable (2P) reserves for the fields is 7 MMboe at year end 2023.
The fields, tied back to the Equinor-operated Norne FPSO, have produced more than 900 MMboe to date.
DNO said the transaction, which is subject to customary regulatory approvals and expected to close in third-quarter 2024, creates a new core area for DNO. The transfer of the Ringhorne East stake is from one of DNO’s non-core areas.
Houlihan Lokey acted as exclusive financial adviser to Vår Energi on the transaction and Advokatfirmaet Schjødt as legal adviser.
Recommended Reading
Freshly Public New Era Touts Net-Zero NatGas Permian Data Centers
2024-12-11 - New Era Helium and Sharon AI have signed a letter of intent for a joint venture to develop and operate a 250-megawatt data center in the Permian Basin.
Huddleston: Haynesville E&P Aethon Ready for LNG, AI and Even an IPO
2025-01-22 - Gordon Huddleston, president and partner of Aethon Energy, talks about well costs in the western Haynesville, prepping for LNG and AI power demand and the company’s readiness for an IPO— if the conditions are right.
ChampionX Completes Improvements to Odessa Chemical Hub
2024-11-18 - The Odessa chemical manufacturing facility in the Permian Basin will increase ChampionX’s capacity by almost 10%, or 10 million kilograms annually.
ADNOC Contracts Flowserve to Supply Tech for CCS, EOR Project
2025-01-14 - Abu Dhabi National Oil Co. has contracted Flowserve Corp. for the supply of dry gas seal systems for EOR and a carbon capture project at its Habshan facility in the Middle East.
Tethys Oil Suspends Kunooz-1 Well in Oman
2024-12-13 - The decision to suspend its Kunooz-1 exploration well comes after flow testing failed to confirm the presence of commercially-viable hydrocarbons, Tethys said.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.