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.