Norwegian oil and gas operator DNO ASA has announced the completion of the asset swap agreement between Equinor and Faroe Petroleum, a wholly owned subsidiary of DNO, following approval by Norwegian authorities.
To remind, Norwegian oil and gas giant Equinor and UK-based Faroe Petroleum agreed a number of transactions in the Norwegian Sea and the North Sea region of the Norwegian Continental Shelf (NCS) back in December 2018. These transactions were calibrated as a balanced swap when it comes to value with no cash consideration.
DNO announced the completion of this deal on Tuesday, April 30, and added that the effective date of the transaction was January 1, 2019.
DNO said that, as part of the transaction, Faroe Petroleum’s interests in the non-producing Njord and Hyme redevelopment and Bauge development assets were exchanged for interests in four Equinor-held producing assets on a cashless basis, including interests in the Alve, Marulk, Ringhorne East and Vilje fields.
In a separate statement on Tuesday, Equinor said: “As a result of these transactions Equinor has strengthened its operated position in the Njord area and remains operator and majority equity holder in Alve, while reducing its exposure to non-core and partner-operated assets.”
It is worth reminding that, back when the Equinor-Faroe deal was made, DNO was amid a hostile takeover of Faroe Petroleum and DNO questioned the value of the deal between Faroe and Equinor. DNO claimed that Faroe’s assets, the substantial part of which are Norwegian, “are better placed in the bosom of DNO, Norway’s oldest independent oil and gas company.”
The saga between DNO and Faroe ended early this year, resulting in DNO taking over the controlling interest in Faroe. Namely, Faroe’s board, after weeks of resisting to DNO’s hostile bid of 150p a share, finally yielded in early January 2019. Days later, Faroe’s executive directors gave notice of resignation.