Vår Energi has agreed to sell its Norne area assets to DNO Norge, in exchange for a fixed consideration of $51m, and DNO Norge’s stake in the Ringhorne East unit.

Under the terms of the agreement, DNO will assume decommissioning liabilities for the acquired fields, and Vår Energi will receive DNO’s 22.62% stake in the Ringhorne East unit.

The transaction is expected to be completed in the third quarter of this year, subject to customary regulatory approvals and will be effective from 1 January 2024.

Vår Energi said that the transaction is in line with its strategy to dispose of non-core assets to high-grade the portfolio and further support long-term value creation in its core hub areas.

The assets being divested are late life, and the transaction will improve its unit operating costs and emissions intensity, said the Norwegian oil and gas company.

Vår Energi CEO Nick Walker said: “Vår Energi is one of the fastest growing E&P companies in the world and is firmly on track to reach production of around 400 thousand barrels of oil equivalent per day by the end of 2025.

“Following the Neptune transaction, our stated plan was to dispose of non-core assets to high grade the portfolio, and we are pleased to have reached an agreement with DNO for the sale of producing field interests in the Norne area and to receive an increased stake in the Ringhorne East unit.”

The Norne area is located in the Norwegian Sea and comprises the Norne, Urd, Skuld and Marulk fields and the Verdande development project.

Vår Energi produced around three thousand barrels of oil equivalent per day from the Norne area fields in 2023 and the first quarter of 2024.

The fields had net remaining proved plus probable (2P) reserves of seven million barrels of oil equivalent at the end of 2023.

Houlihan Lokey served as exclusive financial advisor and Advokatfirmaet Schjødt as legal advisor to Vår Energi, on this transaction.