ONE-Dyas E&P Limited has sold a 25% interest in the Arran field to DNO, enabling the firm to get its hands on an average of 3,150 barrels of oil equivalent per day (boepd), as its share of production of gas and liquids from the field during the first four months of 2024, up from the 2,000-2,500 boepd projected at the original announcement in February.
Since then the Norwegian player claims that the drilling activities at the AN-4 infill well have been completed on time and budget, thus, the well is scheduled to start production later this year. The Arran field was brought on stream in 2021 as a subsea tie-back to the Shell-operated Shearwater A platform.
Located in 22/30b in the Central North Sea, approximately 225 km (140 miles) East of Aberdeen, in a water depth of 295 ft (90 m), Shearwater is a normally manned integrated process, utilities, and quarters (PUQ) platform, which is bridge linked to a wellhead (WH) platform.
Gas from Arran is exported via the Fulmar Gas line to the St. Fergus Terminal while liquids are exported to Cruden Bay via the Forties Pipeline System. The consideration paid upon completion of the acquisition was approximately $60 million, adjusting for interim cash flow from the effective date of January 1, 2024, to the completion date of May 15, 2024.
As Arran is expected to have a short payback period, DNO is anticipating financial synergies between this asset and its existing position in the UK. According to the company, the contingent consideration of $5 million, payable if certain operational targets were met, will not be paid.
Chris Spencer, DNO’s Managing Director, commented: “Together with our recently announced acquisition of interests in multiple fields in the Norne area offshore Norway, Arran brings balance to our North Sea business by adding production to complement a strong development and exploration portfolio.
“Combined, the two transactions add more than 12 million barrels of oil equivalent and 5,000 boepd of production net to DNO, growing to more than 7,000 boepd by 2026.”
hearwater platform in the North Sea; Source: Shell
