Norwegian oil and gas company DNO ASA agreed to acquire Sval Energi, a portfolio company of private equity firm HitecVision, in a $1.6bn deal. 

The transaction includes a $450m cash payment and the assumption of Sval’s existing debt.

The deal marks a major exit for HitecVision, one of Europe’s leading energy-focused private equity firms, which has built Sval Energi through a series of acquisitions. The divestment comes amid a broader trend of private equity firms monetising traditional energy assets while shifting capital toward low-carbon and renewable investments.

For DNO, the acquisition signals a strategic return to its North Sea roots, significantly expanding its regional footprint after decades of Middle East operations. The transaction will quadruple DNO’s North Sea production to approximately 80,000 barrels of oil equivalent per day (boepd), bringing its total output to around 140,000 boepd, based on pro-forma 2024 data.

DNO’s share price jumped nearly 7% following the announcement. However, analysts at DNB Markets noted that the deal increases DNO’s leverage, as it is being financed through existing cash reserves and additional debt.

The acquisition underscores a growing private equity-led transformation in the North Sea, where firms such as HitecVision, Bluewater, and EIG have played a key role in consolidating mid-sized producers before selling them to larger strategic players. Sval’s 16-field portfolio, which includes a significant stake in the ConocoPhillips-operated Ekofisk field, will now form a core part of DNO’s expansion strategy, with further acquisitions in Norway and beyond potentially on the horizon.