DNO presses Faroe for ‘transparency’ after downgrade

The Oda field will be tied-back to Aker BP's Ula platform.
The Oda field will be tied-back to Aker BP's Ula platform.

Norwegian firm DNO has urged its takeover target, Faroe Petroleum, to provide “transparent and timely” operations updates.

Oslo-based DNO said an independent expert’s valuation report prepared for Faroe made no reference to a reserves downgrade at the Oda field offshore Norway.

Yesterday, the Norwegian Petroleum Directorate said reserves had been lowered to 32.7 from 47.2 million barrels of oil equivalent.

Aberdeen-headquartered Faroe owns 15% of Oda, which has been approved for start-up in the first quarter of this year.

DNO said: “Coming on the back of three unsuccessful exploration wells and the questionable Equinor swap, this previously undisclosed reserves downgrade at Oda raises concerns over Faroe’s future expected production profiles, and should have been accurately reflected in the independent expert’s report, a glossy version of which was posted to shareholders on 4 January 2019.”

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