Wedoany.com Report-Nov. 19, Orlen SA has agreed to sell 20 percent of its Norwegian North Sea production license (PL) containing the Cassio prospect, as well as approximately 0.83 percent of the under-development Verdande field, to DNO ASA. The deal was announced by DNO on Tuesday, with the transaction covering a significant portion of the license and a key asset in the region.

DNO will also divest its stake of around 7.6 percent in the Ekofisk Previously Produced Fields project, part of efforts to 'high-grade' its North Sea portfolio.

The Cassio prospect, located in PL1135, lies directly north of DNO's operated PL1086, which includes the Othello oil discovery announced in December 2024. DNO indicated that an exploration well on the Cassio field is expected by late 2026. At present, Orlen holds an 80 percent stake in PL1135, with Source Energy AS owning the remaining 20 percent. The license is valid through 2031, according to the Norwegian Offshore Directorate.

Additionally, DNO will divest its 7.6 percent stake in the Ekofisk Previously Produced Fields (PPF) project in PLs 018B and 018F to Orlen. However, DNO will retain its 7.6 percent interest in PL018, which includes the producing fields Ekofisk, Eldfisk, and Embla, as well as a share in the Tor Unit.

In a further strategic move, DNO is increasing its interest in the Verdande Unit, which is located in the Norne area and is in advanced stages of development. DNO's total stake in the Verdande Unit will increase to 14.83 percent, including a 3.5 percent stake acquired through a recent asset swap with Aker BP. The Verdande project is scheduled to begin production later this year.

DNO's executive chair, Bijan Mossavar-Rahmani, commented on the deal, saying: "As we continue to high-grade our North Sea portfolio, our focus is on increasing near-term cash flow with less spend and more barrels more quickly." He also emphasized that the Ekofisk PPF project, which covers the redevelopment of older, shut-in fields with an expected production start in 2029, fits better within other companies' portfolios. DNO intends to allocate its capital expenditure to projects more in line with its strengths, particularly exploration and rapid development of existing discoveries.

Earlier this month, DNO and Aker BP entered into swap agreements under which DNO raised its stake in the Verdande project by 3.5 percent. As part of the swap, Aker BP will take over operatorship of the Kjottkake discovery until production begins, after which DNO will resume operatorship. The production of Kjottkake is now expected for the first quarter of 2028, a notably quick timeline for such projects on the Norwegian continental shelf.

The swap agreements also include the transfer of DNO's 28.9 percent stake in the producing Vilje field to Aker BP, which will increase its stake to 75.76 percent. DNO will retain stakes in other assets, including the Kveikje discovery and exploration assets, following the transfer.

These moves are in line with DNO's strategy to optimize its North Sea portfolio, a strategy bolstered by the acquisition of Sval Energi AS in June 2025. The agreements, which do not involve cash, are subject to regulatory and partner approvals.