Norwegian oil and gas operator DNO (OSL:DNO) is expanding its UK North Sea portfolio, acquiring a 25% interest in the Arran field from Dutch firm ONE-Dyas.
DNO said the acquisition is expected to add around four million barrels of oil equivalent in production, of which 90 percent is gas.
The company projected net 2024 production of 2,000-2,500 barrels of oil equivalent per day (boepd) from its stake in Arran.
DNO said the cash consideration for the Arran interest is $70 million (£55.4m) plus a contingent consideration of up to $5 million (£3.96) if certain operational targets are met.
DNO managing director Chris Spencer said the company expects financial synergies between Arran and its existing portfolio in the UK.
“Arran fits neatly in our strategy of acquiring bolt-on producing assets as we develop our significant discoveries in Norway.”
Originally discovered in 1985, operator Shell started up production from the Arran field in September 2021 as a subsea tieback to the Shearwater production hub.
The field is expected to pump out about 21,000 barrels of oil equivalent per day, at peak.
Shell UK holds a 44.57% operating stake in Arran, with RockRose Energy holding 30.43% interest.
DNO said the Arran deal continues the expansion of its North Sea portfolio that includes 14,200 boepd of production currently almost exclusively from fields in Norway.
DNO expects that figure to grow as ongoing development projects in Norway, including Trym Restart (50 percent and operator), Andvare (32 percent) and Berling (30 percent) are brought onstream.
DNO North Sea portfolio
Last year, DNO announced a “significant” discovery at the Carmen well, a find believed to be the largest in Norwegian waters for over a decade.
Located in Norwegian North Sea license PL1148, the 35/10-10 S Carmen well was spudded in April 2023 with the Deepsea Yantai semi-sub.
At the midpoint of this range – 175 million boe – the find would rank as the largest discovery on the Norwegian Continental Shelf since 2013, DNO said.