Norwegian player’s expansion expected to more than double its daily output

Norway’s oil and gas company Pandion Energy has inked an agreement to acquire ONE-Dyas’s subsidiary holding the company’s Norwegian assets in a bid to secure further growth on the Norwegian Continental Shelf (NCS) and more than double its daily production.

Pandion Energy reported on Wednesday that it has signed an agreement with ONE-Dyas Holdings to acquire ONE-Dyas Norge, aiming to not just double its daily production but go beyond this target. This goal is expected to be achieved following this transaction, which includes a 10 per cent share in the Wintershall Dea-operated Nova field and a total of 11 exploration licenses.

Pandion Energy; Nova field development
Source: Pandion Energy

Jan Christian Ellefsen, CEO of Pandion Energy, remarked: “This transaction represents a new leap in the Pandion story and secures the foundation for further growth. Our asset base is strengthened and, with Nova on stream, our daily production will more than double.”

Located in the northern part of the North Sea, the Nova field is being developed with two subsea templates tied back to the existing Gjøa platform and is expected to start production in the second half of 2022.

The Nova consortium includes Wintershall Dea as the operator and Sval Energi, Spirit Energy, and ONE-Dyas as project partners. 

The Nova field – former Skarfjell – was discovered in 2012 and the plan for development and operation (PDO) was approved in 2018. The use of existing infrastructure enables effective extraction of the resources and Nova will be sustainably operated with hydropower from shore through Gjøa, which is electrified with power from shore.

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To remind, drilling on Nova originally started at the end of October 2020 but was paused following an incident with one of the x-mas trees and the West Mira rig. As a result of the incident, the contract for the drilling rig West Mira was terminated in May 2021 and Wintershall Dea hired the Saipem-owned rig for the drilling of three production wells and three water injection wells through two subsea templates.

As previously reported, Wintershall Dea started the last part of the Nova drilling campaign from the Scarabeo 8 semi-submersible rig in November 2021.

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In its statement confirming the sealing of the deal for the acquisition of ONE-Dyas’ operations in Norway, Pandion Energy informed it currently produces over 5,000 barrels of oil equivalent per day through its 10 per cent ownership in the Valhall and Hod fields, anticipating a further increase as the new Hod B platform comes on stream in 2022.

Furthermore, as the Valhall area has been fully electrified from shore since 2013, Pandion Energy believes that the combined Valhall and Nova production will, in line with the company’s net-zero carbon strategy, have among the lowest CO2 intensity levels on the NCS.

“During the first five years, Pandion Energy has earned its reputation as a trusted partner in exploration and field development on the Norwegian Continental Shelf. ONE-Dyas Norge fits well with our existing portfolio and organisation and will strengthen our position as an active, full-cycle partner driving value in high-quality assets on the NCS,” added Ellefsen.

Pandion Energy Norwegian player expanding its portfolio with ONE-Dyas’ assets to boost daily production
The Nova field is tied back to the Gjøa platform, extending the economic lifetime of the existing infrastructure; Credit: Neptune Energy/Jan Inge Haga

The company explained that this transaction is subject to customary conditions for completion, including but not limited to approval by the Norwegian Ministry of Petroleum and Energy. In addition, Ellefsen further elaborated that Pandion Energy has previously indicated plans for further expansion on the Norwegian Continental Shelf.

“M&A activity on the NCS was slow during the first half of 2021, but more opportunities started to occur as we approached 2022. We are still actively searching for and evaluating additional opportunities to further grow our portfolio,” concluded Ellefsen.