Norwegian oil and gas operator DNO announced that it has agreed to a multi-asset transaction with Vår Energi to acquire a five per cent stake in the Gjøa field and the Gjøa Nord discovery.
Under the terms of the agreement, the company will exchange a five per cent interest in the Nova subsea field, reducing its holding in that asset to 40 per cent.
DNO will also divest its 15 per cent stake in PL956, which contains the Ringhorne Nord discovery, to Vår Energi. Further consideration for the asset exchange will include a post-tax cash payment of $17.5 million, the company announced.
Executive Chairman Bijan Mossavar-Rahmani stated that the company has previously held a stake in every field tied back to Gjøa but not in the host platform itself. "With Kjøttkake, Cuvette, Ofelia, Cerisa and now Gjøa Nord, we have five Gjøa tie-backs heading for final investment decisions this year," he added.
By accelerating the development of discoveries, DNO said it is confident it can reach its North Sea production target of 100,000 barrels of oil equivalent per day by 2030.
The company added that the transaction remains subject to customary government approvals and will have a largely neutral effect on near-term production and reserves.
