KEY POINTS
- DNO has agreed to sell all of its North Sea oil to Shell and ExxonMobil subsidiaries from January 2026
- The offtake deals are linked to financing facilities of up to $410 million, split between the two agreements
- Combined with a prior gas offtake deal, DNO has now secured up to $910 million in funding tied to North Sea production
Norwegian oil and gas producer DNO has struck new oil offtake agreements with subsidiaries of Shell and ExxonMobil, securing long-term buyers for its North Sea output and unlocking fresh financing at a time of heightened volatility across global Energy markets.
The agreements, which take effect from January 1, 2026, will see DNO place all of its North Sea oil production with the two international majors. Alongside the sales contracts, the company has arranged offtake-linked financing facilities totalling up to $410 million, strengthening its balance sheet and providing additional headroom for growth.
DNO said the deals provide certainty over revenue while offering flexible funding terms, a combination that has become increasingly attractive for independent producers navigating tighter credit conditions.
Financing tied to output splits between majors
Under the arrangement with ExxonMobil Asia Pacific, roughly half of DNO’s North Sea oil production will be sold under a two-year offtake contract. The agreement is backed by a revolving credit facility of up to $185 million, giving the company access to liquidity over the life of the deal.
The remaining half of production will be delivered to Shell Trading and Shipping Company, known as STASCO, under an agreement with an initial tenor of one year. That contract is supported by a prepayment facility of up to $225 million, arranged with a European bank.
DNO’s executive chairman, Bijan Mossavar-Rahmani, said the agreements unlock financing at attractive rates and create opportunities to pursue further growth despite unsettled market conditions. He added that the terms offer a degree of flexibility that is particularly valuable in periods of price uncertainty.
The latest deals build on a gas offtake agreement signed with France’s Engie in July 2025, which was also linked to financing. Taken together, DNO has now put in place funding facilities of up to $910 million secured against its North Sea oil and gas production.
The offtake agreements follow closely on the heels of an asset exchange deal with Aker BP, under which DNO swapped several positions on the Norwegian Continental Shelf to sharpen its portfolio and increase exposure to core assets nearing production.
The moves underscore a broader strategy by the Oslo-listed company to lock in cash flows and secure funding through commercial partnerships, as North Sea operators seek to balance investment discipline with the need to sustain output in a maturing basin.
