DNO signs four-year North Sea gas offtake deal with ENGIE

OSLO, July 3, 2025 – DNO has signed a four-year offtake agreement for its natural gas production from the Norwegian continental shelf with France’s ENGIE, DNO announced on Tuesday.

The agreement covers all of DNO’s Norwegian gas production following its March 2025 acquisition of Sval Energi in a deal that quadrupled DNO’s North Sea production. Financial terms for the offtake agreement were not disclosed, but DNO noted that the transaction is structured with “premium pricing.” Offtake is scheduled to begin on October 1, 2025.

 

DNO said that the deal had been facilitated by a USD 500-million offtake financing facility from an unnamed US bank. The financing facility enables DNO to draw the value of up to 270 days of scheduled gas production based on future sales receivables. The interest rate on drawn amounts is significantly below typical reserve-based lending terms, according to DNO’s announcement, and the facility is not subject to financial covenants or fees on undrawn amounts.

Part of the financing will be used to replace similar facilities currently held by Sval Energi. DNO said it has repaid and chosen not to renew more than USD 600 million in existing reserve-based loans across its North Sea subsidiaries, and has taken on a separate USD 300 million one-year bank bridge loan.

“We have received strong interest from buyers to pre-purchase our enlarged North Sea production of 80,000 boepd, 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,” said DNO executive chairman Bijan Mossavar-Rahmani.

DNO said it is also negotiating an offtake agreement and financing for its North Sea oil production on similar terms.