Norwegian oil and gas company DNO ASA has agreed to acquire Sval Energi, a portfolio company of private equity firm HitecVision, in a $1.6bn deal that includes a $450m cash payment and assumption of the company’s debt, according to a report by Reuters.
The transaction represents a significant exit for HitecVision, one of Europe’s leading energy-focused private equity firms, with ten firm having built Sval Energi through a series of acquisitions over recent years.
The exit comes at a time when private equity firms are shifting capital toward low-carbon and renewable investments, while still monetising traditional energy holdings in response to rising oil prices and increased demand for North Sea assets.
For DNO, the acquisition represents a strategic pivot back to its North Sea roots, significantly expanding its footprint in the region after decades of operations in the Middle East. The deal will quadruple DNO’s North Sea production to approximately 80,000 barrels of oil equivalent per day (boepd) and boost its total output to around 140,000 boepd, based on pro-forma 2024 data.
While DNO’s share price surged nearly 7% following the announcement, analysts at DNB Markets noted that the deal will also increase DNO’s leverage, as it is being financed through existing cash reserves and additional debt financing.
The acquisition of Sval Energi is part of a broader private equity-led transformation in the North Sea, where firms like HitecVision, Bluewater, and EIG have played an active role in consolidating mid-sized producers before selling them to larger strategic players.
Sval’s 16-field portfolio, which includes a significant stake in ConocoPhillips-operated Ekofisk, will now become a core part of DNO’s growth strategy, with additional acquisitions in Norway and beyond potentially on the horizon.
