Norwegian oil and gas company Vår Energi has sold stakes in five oil and gas fields in the Norne area in the Norwegian Sea for $51 million to DNO Norge, which in turn will transfer its stake in the Ringhorne East unit to Vår Energi.

The transaction with DNO is in line with Vår Energi’s stated strategy to dispose of non-core assets to high grade the portfolio, supporting further growth and long-term value creation in its core hub areas.

The assets being sold are late life, and the transaction will improve Vår Energi’s unit operating costs and emissions intensity outlook, the company said.

At the same time, the transaction creates a new core area for DNO in the North Sea as DNO will hold interests in all producing and under development fields in the greater Norne area, including the Norne hub.

The agreement covers an interest in four producing fields, Norne (6.9%), Skuld (11.5%), Urd (11.5%) and Marulk (20%), plus the ongoing Verdande development (10.5%). Prior to the transaction, DNO held interests in Marulk (17%), Alve (32%) and the ongoing Andvare development (32%).

As part of the transaction, DNO will transfer its stake in Ringhorne East (22.6%) located in a non-core area for the company to Vår Energi.

According to DNO, the deal adds more than eight million barrels of oil equivalent (MMboe) in reserves and resources net to the company.

In terms of production, the transaction (net to DNO, including divestment of Ringhorne East) is estimated to add 3,000 barrels of oil equivalent per day (boepd) to DNO’s output at closing, rising to above 5,000 boepd in 2026 as the Verdande contribution kicks in.

Having produced more than 900 MMboe to date, all fields in the area are tied back to the Equinor operated Norne FPSO that came onstream in 1997.

Oil produced in the area is loaded from the FPSO to tankers for export, while the gas is exported by pipeline through the Åsgard Transport System. The Norne license has applied for lifetime extension until 2036.

“Vår Energi is one of the fastest growing E&P companies in the world and is firmly on track to reach production of around 400 thousand barrels of oil equivalent per day by the end of 2025.

“Following the Neptune transaction our stated plan was to dispose of non-core assets to high grade the portfolio, and we are pleased to have reached an agreement with DNO for the sale of producing field interests in the Norne area and to receive an increased stake in the Ringhorne East unit,” said Nick Walker, Vår Energi CEO.

“This transaction is another step in the rebalancing of our North Sea business on the heels of the acquisition of a 25% stake in UK’s Arran field announced in February,” added Executive Chairman Bijan Mossavar-Rahmani.