DNO, the Norwegian oil and gas operator, has announced an agreement with Equinor Energy AS under which selected non-core license interests will be transferred to Equinor in return for a significantly reduced decommissioning deposit and a corresponding improvement in near-term liquidity.
As part of its 2025 acquisition of Sval Energi AS, DNO assumed an obligation to pay a post-tax deposit for decommissioning liabilities to Equinor this month relating to the Ekofisk and Martin Linge assets. The deposit would be held by Equinor until the fields have been decommissioned long into the future.
Under the terms of the new agreement, the deposit is reduced to a one-time payment, improving near-term liquidity including tax effects by more than USD 35 million.
In exchange, DNO will transfer the following license interests to Equinor:
- 20 percent in PL293B and 293 CS (Kveikje discovery)
- 29 percent in PL827 S (Heisenberg discovery)
- 10 percent in PL1245 (exploration license containing the Romsås prospect)
While fully exiting Kveikje, DNO will retain 20 percent interest in Heisenberg and 20 percent in PL1245.
'Divesting selected non-core license interests offers an alternative route to fast-track monetization of exploration discoveries, releasing value early and strengthening DNO’s near-term financial muscle,' said DNO’s Executive Chairman Bijan Mossavar-Rahmani. 'Reserves and output are unchanged, and DNO remains on track to raise North Sea production to 100,000 barrels of oil equivalent per day by 2030,' he added.
The transaction is subject to customary government approvals.
Source: DNO
