DNO Secures North Sea Gas Offtake and Related USD 500 Million Financing Facility; Adds Arrows to its Quiver

Core Insights - DNO ASA has entered into an offtake agreement with ENGIE SA for its Norwegian gas production, securing a financing facility of up to USD 500 million with a major US bank [1][2][3] Group 1: Offtake Agreement - The offtake agreement encompasses all of DNO's Norwegian gas production following the acquisition of Sval Energi Group AS, offering premium pricing with a duration of four years starting from October 1, 2025 [2] - DNO's Executive Chairman highlighted strong buyer interest in the company's North Sea production, which is projected at 80,000 barrels of oil equivalent per day, split evenly between oil and gas [5] Group 2: Financing Facility - The financing facility allows DNO to receive payment for up to 270 days of scheduled gas production based on future sales receivables, with an interest rate significantly lower than conventional reserve-based lending terms [3] - Proceeds from the financing will replace existing facilities from Sval Energi and be used for general corporate purposes [4] Group 3: Strategic Financial Moves - DNO has opted to repay and not renew over USD 600 million in reserve-based loans across its North Sea subsidiaries due to attractive financing terms [6] - The company has also secured a USD 300 million one-year bank bridge loan to enhance its financial flexibility [6]