Latest news with #offtakeagreement
Yahoo
2 days ago
- Business
- Yahoo
DNO signs North Sea gas offtake agreement with Engie
DNO has entered an offtake agreement with French energy company Engie for its Norwegian North Sea gas production, via DNO's wholly owned Norwegian subsidiaries. This strategic move follows Norwegian oil and gas operator DNO's acquisition of Sval Energi Group. The offtake agreement spans the entire output of DNO's Norwegian gas production and offers premium pricing over a four-year term beginning 1 October 2025. Concurrently, DNO has secured a related offtake financing facility of up to $500m with a major US bank that allows the company to receive payment for up to 270 days of scheduled gas production in advance, based on future sales receivables. The all-in interest rate for the financing facility is notably lower than conventional reserve-based lending (RBL) terms available to DNO, and importantly, there are no charges for undrawn amounts. "There are no financial covenants related to the facility," the company stated, highlighting the favourable terms of the agreement. The proceeds from this facility will serve to replace existing facilities of Sval Energi and for general corporate purposes. DNO executive chairman Bijan Mossavar-Rahmani said: 'We have received strong interest from buyers to pre-purchase our enlarged North Sea production of 80,000 barrels of oil equivalent per day, split about equally between oil and gas. 'These three-way transactions are made possible because buyers are eager to lock in secure supplies of Norwegian oil and gas and US banks, in particular, have significantly stepped up fossil fuel lending.' The financial restructuring of the company includes the repayment and non-renewal of more than $600m in RBLs across DNO's North Sea subsidiaries. Additionally, DNO has taken a $300m one-year bank bridge loan. In a separate development, DNO is engaged in discussions to establish an offtake agreement and a related financing facility for its North Sea oil production, aiming to mirror the favourable terms of its gas production deal. "DNO signs North Sea gas offtake agreement with Engie" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
4 days ago
- Business
- Yahoo
DNO Secures North Sea Gas Offtake and Related USD 500 Million Financing Facility; Adds Arrows to its Quiver
Oslo, 2 July 2025 – DNO ASA, the Norwegian oil and gas operator, today announced that the Company's wholly-owned Norway operating subsidiaries have entered into an offtake agreement with France's ENGIE SA for DNO's Norwegian gas production and secured a related offtake financing facility with a major US bank for up to USD 500 million. The offtake agreement covers the entirety of DNO's Norwegian gas production post acquisition of Sval Energi Group AS, offers premium pricing and has a tenor of four years as from 1 October 2025. Related to the agreement, DNO has entered into an offtake financing facility with a US bank for up to USD 500 million. Under the facility, DNO is paid, by the bank, the value of up to 270 days of scheduled gas production based on future gas sales receivables. The all-in interest rate for drawn amounts under the facility is significantly below conventional reserve-based lending (RBL) terms available to DNO, with no charges for undrawn amounts. There are no financial covenants related to the facility. Proceeds from the offtake financing facility will be used to replace Sval Energi's similar existing facilities as well as for general corporate purposes. 'We have received strong interest by buyers to prepurchase our enlarged North Sea production of 80,000 barrels of oil equivalent per day split about equally between oil and gas,' said DNO's Executive Chairman Bijan Mossavar-Rahmani. 'These three-way transactions are made possible because buyers are eager to lock in secure supplies of Norwegian oil and gas and US banks, in particular, have significantly stepped up fossil fuel lending,' he explained. Given availability of attractive offtake financing terms, DNO has repaid and will not renew over USD 600 million in RBLs across its North Sea subsidiaries. In addition, the Company has borrowed USD 300 million under a one-year bank bridge loan 'to add more arrows to our quiver,' according to Mr. Mossavar-Rahmani. Separately, DNO is in discussions to establish an offtake agreement and related financing facility on comparable terms for its North Sea oil production. – For further information, please contact:Media: media@ – DNO ASA is a leading Norwegian oil and gas operator active in the Middle East, the North Sea and West Africa. Founded in 1971 and listed on the Oslo Stock Exchange, the Company holds stakes in onshore and offshore licenses at various stages of exploration, development and production in the Kurdistan region of Iraq, Norway, the United Kingdom, Côte d'Ivoire and Yemen. More information is available at This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading in to access your portfolio
