DNO Acquires Sval Energi for $450M, Expands North Sea Production

Norwegian oil company DNO ASA has announced its acquisition of Sval Energi Group for $450 million from HitecVision, with the deal based on an enterprise value of $1.6 billion. This acquisition is expected to significantly enhance DNO's operations in the North Sea, quadrupling its production to approximately 80,000 barrels of oil equivalent per day and increasing its total output to around 140,000 boepd. DNO described the Sval Energi assets as complementary to its existing portfolio, aiming to solidify its position as a leading independent oil and gas company in Europe. The deal will be financed through existing cash resources and debt financing options available to DNO. The acquisition is part of DNO's strategy to shift its focus toward Norway from its previous operations in Iraq, reflecting a broader trend in the industry toward North Sea production. The transaction is seen as a strategic move to boost the company's energy yield and reserves by 50% to 423 million barrels of oil equivalent.