DNO, the Norwegian oil and gas operator, has completed the acquisition of a 25% interest in the Arran field on the UK Continental Shelf from ONE-Dyas E&P.
The field is operated by Shell UK (44.57%) and was brought on stream in 2021 as a subsea tie-back to the Shell-operated Shearwater A platform.
DNO’s share of production of gas and liquids from Arran during the first four months of 2024 averaged 3,150 barrels of oil equivalent per day (boepd), up from the 2,000-2,500 boepd projected at the transaction announcement in February 2024.
Since February, drilling of the AN-4 infill well has been completed on time and budget, with the well scheduled to start production later this year.
The consideration paid upon completion was approximately $60 million. The contingent consideration of $5 million that was payable if certain operational targets were met will not be paid.
“Together with our recently announced acquisition of interests in multiple fields in the Norne area offshore Norway, Arran brings balance to our North Sea business by adding production to complement a strong development and exploration portfolio.
“Combined, the two transactions add more than 12 million barrels of oil equivalent and 5,000 boepd of production net to DNO, growing to more than 7,000 boepd by 2026,” said Chris Spencer, DNO’s Managing Director.