Norwegian oil group DNO said on Friday it has agreed to buy North Sea-focused rival Sval Energi Group from private equity group HitecVision for a cash consideration of $450 million, based on an enterprise value of $1.6 billion.
The transaction will quadruple DNO's North Sea production to around 80,000 barrels of oil equivalent per day (boepd) and lift its total output to around 140,000 boepd based on pro-forma 2024 data, it said.
DNO's remaining production comes primarily from two operated fields in the Kurdistan region of Iraq.
"The Sval Energi assets are complementary to DNO's North Sea portfolio and will add scale and diversification to solidify the company's position as a leading listed European independent oil and gas company," DNO said in a statement.
The acquisition will be financed with existing cash and other debt financing facilities available to DNO, it added.
Sval Energi holds stakes in 16 producing fields offshore Norway, with net production of 64,100 boepd in 2024, split about equally between liquids and gas.
DNO said it expects to close the deal by mid-year, contingent on regulatory approvals.
(Reporting by Terje Solsvik, editing by Anna Ringstrom)