DNO, the Norwegian oil and gas operator, has announced it has reached agreement to acquire 100 per cent of the shares of rival Sval Energi Group AS from HitecVision for a cash consideration of $450 million based on an enterprise value of $1.6 billion.

The Sval Energi assets are complementary to DNO’s North Sea portfolio and will add scale and diversification to solidify the Company’s position as a leading listed European independent oil and gas company.

The acquisition will be financed from existing liquidity including available credit facilities, said a statement from DNO.

The company will set in place the optimal capital structure prior to completion, it added.

"This is a rare opportunity to acquire a portfolio of high-quality oil and gas assets on the Norwegian Continental Shelf," said DNO’s Executive Chairman Bijan Mossavar-Rahmani.

"And we have moved fast to capture it. Given low unit production costs and limited near-term investment requirements, the Sval Energi portfolio is highly cash generative and will help underpin development of the numerous discoveries we have made in Norway recently," he added.