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DNO, Equinor Reach Agreement Over Non-Core Licenses, Decommissioning Deposit

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Norwegian oil and gas operator DNO on Tuesday said it has reached an agreement to transfer select non-core license interests to energy major Equinor (EQNR) in exchange for a significantly reduced decommissioning deposit related to its 2025 acquisition of Sval Energi.

As part of the acquisition, DNO had agreed to make a post-tax decommissioning deposit to Equinor this month for the Ekofisk and Martin Linge assets. The deposit was to be held by Equinor until the fields are eventually decommissioned.

"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 [$35] million," DNO said in a statement.

DNO will transfer to Equinor 20% interests in exploration licenses PL293B and 293 CS, which cover the Kveikje discovery; 29% in PL827 S, covering the Heisenberg discovery; and 10% in PL1245, which contains the Romsas prospect.

It will fully exit the Kveikje but retain 20% interests in Heisenberg and 20% in PL1245, the statement added.

DNO's reserves and production will remain unchanged following the agreement, with the company still on track to increase North Sea output to 100,000 barrels of oil equivalent per day by 2030, Executive Chairman Bijan Mossavar-Rahmani said.

The agreement is contingent upon necessary government approvals.

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