DNO Swaps Non-Core Assets with Aker BP for Larger Stake in Norwegian Field
Norwegian oil and gas operator DNO has agreed to exchange multiple assets with compatriot Aker BP on the Norwegian Continental Shelf (NCS). This transaction is expected to enhance DNO's portfolio by increasing its stake in the Verdande field from 10.5% to 14%.
The Verdande field, operated by Equinor and located in a core area for DNO, is in advanced development stages and set to begin production later this year. It lies 10 kilometers north of the Norne field in the Norwegian Sea at a depth of 380 meters. Discovered in 2017, its plan for development and operation (PDO), approved in 2023, includes a subsea template with three production wells tied back to the floating production, storage, and offloading (FPSO) vessel Norne.
In return, DNO will transfer its entire 28.9% stake in the non-core Vilje field to Aker BP, along with a 9% interest in the Kveikje discovery, reducing DNO’s interest in Kveikje to 20% after the deal. The agreement also covers interests in three exploration permits:
- PL1171 (Sunndal), decreasing DNO’s interest from 50% to 34%
- PL1175 (Reka), decreasing from 30% to 20%
- PL1204 (Abel), decreasing from 60% to 40%
DNO believes the transaction will strengthen its portfolio by increasing its stake in the Verdande field from 10.5 to 14%.
This asset swap strategically positions DNO to focus on core assets with promising production prospects while divesting from less central holdings.
Summary: DNO's asset swap with Aker BP increases its stake in the high-potential Verdande field, optimizing its portfolio for upcoming production and focusing on core Norwegian Continental Shelf assets.