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
Energy Transition in Motion (Week of May 10, 2024)
2024-05-10 - Here is a look at some of this week’s renewable energy news, including $1.5 billion in investment commitments for low-carbon energy initiatives.
US Geothermal Sector Gears Up for Commercial Liftoff
2024-04-17 - Experts from the U.S. Department of Energy discuss geothermal energy’s potential following the release of the liftoff report.
Could Concentrated Solar Power Be an Energy Storage Gamechanger?
2024-03-27 - Vast Energy CEO Craig Wood shares insight on concentrated solar power and its role in energy storage and green fuels.
Markman: Want CO2 Gone Now? Well, You Don’t Always Get What You Want
2024-04-29 - A slew of scenarios shows that climate goals can be achieved with the use of fossil fuels and CCUS.
Bill Gates: ‘A Heroic Effort’ is Beginning, but Climate Goals Still Won’t be Hit
2024-03-26 - Bill Gates said during CERAWeek by S&P Global that the energy transition was picking up speed but still wouldn’t be able to achieve the climate goals established under the Paris Agreement of 2015.