Content
Highlights
3
Key figures
4
Board of Directors
5
Board of Directors’ report
7
Introduction
7
Operations review
8
Business development
9
Financial performance
9
Corporate governance
10
Enterprise risk management
13
HSE performance
15
Organization and personnel
16
Parent company
18
Main events since yearend
18
Sustainability statement
20
Responsibility statement
48
Consolidated accounts
51
Parent company accounts
111
Country-by-country report
126
Auditor reports
127
Alternative performance measures
138
Glossary and definitions
141
DNO Annual Report 2025 3
Highlights
Highlights
In March, DNO
1
announced the transformational acquisition of Sval Energi Group AS (Sval Energi) in
Norway. Following closing of the acquisition, DNO’s North Sea production quadrupled to a level above
80,000 barrels of oil equivalent per day (boepd). Boosted by the acquisition, DNO reported a year-on-year
doubling of revenues to USD 1,474 million in 2025. Cash from operations also more than doubled to USD
929 million, while operating profit increased to USD 513 million. Net profit stood at negative USD 25 million
after deducting income tax and net financial expenses. A major milestone was reached in late 2025 with 500
million barrels produced from the Tawke license in the Kurdistan region of Iraq (Kurdistan).
Net production in 2025 rose 43 percent year-on-year to 110,700 boepd, the highest in the Company’s 54-
year history, split between the North Sea (54,800 boepd), Kurdistan (52,600 boepd) and West Africa (3,300
boepd). The figures picked up in the fourth quarter with net production of 88,300 boepd in the North Sea and
58,000 boepd in Kurdistan.
After a 30-month investment hiatus in Kurdistan, which was triggered by the closure of the export pipeline to
the Mediterranean Sea, DNO restarted drilling in December 2025 with a two-rig, eight-well program on the
Tawke license to increase production and add to existing reserves. A third rig was signed up in January 2026
to drill additional wells in the flagship license, solidifying DNO’s position as by far the most active
international operator in the region.
In the North Sea, the Company is on a fast-track trajectory to grow its enlarged portfolio. With the recent
startup of Andvare and Verdande, DNO at yearend 2025 held stakes in 30 producing North Sea fields, four
ongoing field developments and another four scheduled for approval in 2026, as well as a dozen other
discoveries across some 130 licenses. In January 2026, DNO was awarded participating interests in 17
exploration licenses, of which four are operated, under Norway's Awards in Predefined Areas (APA) 2025
licensing round. The Company remains among the most active explorers in Norway.
During 2025, DNO issued new debt to finance the USD 1.6 billion Sval Energi acquisition and refinance
existing debt. The Group raised a total of USD 1 billion in new senior unsecured bonds (DNO06) and hybrid
bonds (DNO07), while redeeming USD 350 million of bonds (DNO04) maturing in 2026, and thereby
strengthening the capital structure and extending the debt maturity profile.
In addition, during the second half of 2025, DNO entered into offtake agreements and related financing
facilities of up to USD 910 million, linked to its North Sea oil and gas production and repaid more than USD
600 million of higher-priced reserve-based lending facilities.
Continuing to prioritize its shareholders, DNO paid USD 130 million in dividends in 2025, up from USD 103
million in 2024.
The Company exited the landmark year with a balance sheet that had doubled in size to USD 6 billion. Net
debt stood at USD 886 million. With the addition of high-margin assets in the North Sea, DNO now has more
stable cash generation and a significant line of credit available from offtake agreements. As the Company
said at the time of the acquisition: Sval Energi’s portfolio fits like a glove on DNO’s hand. The Company is
ready to move quickly when attractive acquisition opportunities appear.
1
DNO ASA and the companies which it directly or indirectly owns are separate and distinct entities. However, in this report, the terms
“DNO”, “Company” and “Group” may be used for convenience where reference is made to those companies. Likewise, the words “we”,
“us”, “our” and “ourselves” may be used with respect to the companies of the DNO Group.
4 DNO Annual Report 2025
Key figures
Key figures
Key financials (USD million)
2025
2024
Revenues
1,474.0
666.8
EBITDAX
980.0
422.2
EBITDA
843.6
333.3
Operating profit/loss (-)
512.8
6.1
Net profit/loss (-)
-25.2
-27.1
Free cash flow
-36.6
58.8
Operational spend
1,282.8
568.0
Net cash/debt (-)
-885.9
99.0
Lifting costs (USD/boe)
9.6
6.5
Key operational data
2025
2024
Gross operated production (boepd)
79,217
80,280
Net production (boepd)
110,667
77,269
Sales volume (boepd)
69,128
33,918
Net 2P reserves (MMboe)
390.1
281.9
Sval Energi is included in the Group accounts from 1 June 2025. For more information about key figures, see the section on alternative
performance measures.
Board of Directors
DNO Annual Report 2025 5
Board of Directors
The Board of Directors consists of seven members with Bijan Mossavar-Rahmani as the Executive Chairman.
BIJAN MOSSAVAR-RAHMANI
Executive Chairman
Bijan Mossavar-Rahmani has served as DNO’s Executive Chairman of the Board of Directors
since 2011. He chairs the Finance and Investment Committee and is a member of the Nomination
and Remuneration committees.
Mr. Mossavar-Rahmani’s full-time role encompasses strategic, managerial and operational
responsibilities at DNO, of which he is the largest shareholder. An experienced industry executive, he
has served as Chairman of the Board of RAK Petroleum plc between 2013-2022, co-founder and
Chairman of Foxtrot International since 1998 and founder and first Chief Executive Officer of Apache
International Inc. between 1988-1992. In addition to his industry positions, he is active in philanthropy,
education and the arts. He is a Trustee of the New York Metropolitan Museum of Art where he chairs
the Visiting Committee on Islamic Art and is a member of the Finance Committee, a Director of the
Persepolis Foundation and a member of Harvard University’s Global Advisory Council and of Princeton
University’s Nassau Hall Society. He has published more than ten books on global energy markets and
was decorated Commandeur de l’Ordre National de la Côte d’Ivoire for services to the energy sector of
that country. Mr. Mossavar-Rahmani is a graduate of Princeton University (AB) and Harvard University
(MPA).
GUNNAR HIRSTI
Deputy Chairman
Gunnar Hirsti was elected to DNO’s Board of Directors in 2007, chairs the Audit and Risk
Committee and is a member of the Remuneration Committee.
Mr. Hirsti has extensive experience from various managerial, executive and board positions in the oil
and gas industry as well as the information technology industry in Norway. He was Chief Executive
Officer of DSND Subsea ASA (now Subsea 7 S.A.) for a period of six years. He also served as
Executive Chairman of the Board of Blom ASA for eight years. Mr. Hirsti holds a degree in drilling
engineering from Tønsberg Maritime Høyskole in Norway.
ELIN KARFJELL
Director
Elin Karfjell was elected to DNO’s Board of Directors in 2015 and is a member of the Audit and
Risk Committee.
Ms. Karfjell has held various management positions across a broad range of industries, including
Director Property Management and Development of Statsbygg, Managing Partner of Atelika AS and
Chief Executive Officer of Fabi Group, Chief Financial Officer of Atea AS and partner of Ernst & Young
AS and Arthur Andersen. Current directorships include North Energy ASA, Contesto AS and Scale Leap
Capital I AS. Ms. Karfjell is a state authorized public accountant with a Bachelor of Science in
Accounting from OsloMet and holds an advanced auditing degree from the Norwegian School of
Economics (NHH).
ANITA MARIE HJERKINN AARNÆS
Director
Anita Marie Hjerkinn Aarnæs was elected to DNO’s Board of Directors in 2022 and is a member
of the Health, Safety, Environment and Cyber Committee.
Ms. Hjerkinn Aarnæs is Managing Partner Nordics at The Board Practice. She has extensive
international experience within strategy development, governance and organizational effectiveness
across several industries and in particular within the energy sector. She held the position as Director of
Human Resources in the Company from 2012 to 2015, prior to which she had served as Managing
Partner at Heidrick & Struggles and as Management Consultant with PA Consulting Group. Ms. Hjerkinn
Aarnæs was a member of the Board of Directors of Norwegian Finans Holding ASA from its inception.
She is a certified EFQM assessor. She holds a degree in Public Law and is a graduate of the University
of Oslo (Cand Mag) and Harvard University (MPA).
Board of Directors
6 DNO Annual Report 2025
Board of Directors’ report
DNO Annual Report 2025 7
Board of Directors’ report
Introduction
2025 results highlights
• Revenues of USD 1,474 million in 2025 (2024: USD 667
million);
• Kurdistan revenues totaled USD 211 million (2024: USD 231
million) and North Sea revenues totaled USD 1,263 million
(2024: USD 436 million);
• Operating profit of USD 513 million in 2025 (2024: USD 6
million);
• Operational spend of USD 1,283 million (2024: USD 568
million in 2024);
• Yearend cash deposits of USD 454 million and USD 886
million in net debt (USD 899 million in cash and USD 99
million in net cash yearend 2024);
• USD 130 million returned to shareholders through quarterly
dividends.
• Across portfolio, net production of 110,667 boepd, up from
77,269 boepd in 2024, of which Kurdistan contributed 52,569
boepd, North Sea 54,811 boepd and equity accounted West
Africa assets in Côte d’Ivoire 3,287 boepd.
• Gross production at the Tawke license in Kurdistan,
containing the Tawke and Peshkabir fields, averaged 70,092
boepd compared to 78,615 boepd in 2024; and
• Net proven and probable (2P) reserves of 390 million barrels
of oil equivalent (MMboe), compared to 282 MMboe at
yearend 2024.
For a detailed financial review, see section on financial
performance.
Our vision and strategic priorities
DNO is a Norwegian oil and gas operator active in the Middle
East, North Sea and West Africa. DNO’s vision is to remain a
leading, growth-oriented exploration and production company
seeking to deliver attractive returns to shareholders by finding
and producing oil and gas at low cost and at an acceptable
level of risk in a socially responsible and environmentally
sensitive manner. To achieve this vision, our strategic priorities
include:
• Increasing production through the development of our
existing reserves base;
• Growing reserves and contingent resources through focused
exploration and appraisal drilling;
• Pursuing a robust dividend policy;
• Fast-tracking the development of discoveries in the North
Sea;
• Maintaining operational control, financial flexibility and the
efficient allocation of capital in line with DNO’s full-cycle
business model to deliver growth at a low unit cost;
• Encouraging an entrepreneurial culture and attracting the
best talent in the industry;
• Pursuing materially accretive acquisitions;
• Recognizing our corporate governance responsibilities and
commitments, upholding high standards of ethics and
compliance with applicable legal and regulatory
requirements, and managing risks to the business;
• Being a leader in health, safety, security and environmental
best practices in our areas of operation; and
• Minimizing gas flaring and eliminating venting to conserve
resources and control emissions.
Production strength and capacity
DNO’s 2025 net production increased 43 percent year-on-year
to 110,667 boepd largely driven by the acquisition of Norwegian
independent Sval Energi Group AS (Sval Energi) completed in
June. The transaction turned the North Sea into the biggest
contributor to DNO’s net production, with output increasing 261
percent year-on-year to 54,811 boepd (pro forma 2025 average
of 81,059 boepd including the acquired assets throughout the
year). Kurdistan net production declined 11 percent year-on-
year to 52,569 boepd, while West Africa net production rose six
percent to 3,287 boepd.
With net 2P reserves increasing 38 percent year-on-year to 390
MMboe across the portfolio, DNO has the asset base to sustain
material levels of production over the long term.
Most of DNO’s operated activity remains concentrated within
the Tawke license in Kurdistan, which represented 88 percent
of the Company’s global gross operated production. Gross
operated production from the license was down from 78,615
boepd in 2024 to 70,092 boepd in 2025 largely as a result of
drone attacks in July 2025. Tawke license drilling restarted after
a two-and-a-half-year hiatus shortly before yearend 2025.
Organic reserves and resource growth
Done in a structured manner, successful exploration can be one
of the most cost-efficient methods of delivering significant
reserves growth and associated value creation. At DNO, we
focus our efforts on areas where we have in-depth subsurface
knowledge, playing to our technical and operational strengths.
We benchmark each prospect so that capital deployed to
exploration is only allocated to those opportunities that meet our
technical, financial and strategic requirements. Looking ahead,
we will continue to pursue opportunities in the North Sea,
potentially complemented by selected targets in high potential
basins across the Middle East and West Africa with the goal of
rapidly transforming resources into reserves at a low unit cost.
Operational control and financial flexibility
In Kurdistan, we operate what continue to be the Group's most
significant producing assets and have an experienced team and
the operational capabilities to deliver our work programs. In the
North Sea, we are an active and challenging partner influencing
license decisions. To maintain the financial strength and
flexibility to fund further growth opportunities, the Company will
rely primarily on cash flow from operations and, when
necessary, to international capital markets to strengthen the
Company’s balance sheet. In addition, our North Sea
subsidiaries have undrawn capacity under their offtake-linked
financing agreements, providing additional liquidity headroom.
Encouraging an entrepreneurial culture
DNO’s growth and success revolve around the quality and
commitment of our people. We are an entrepreneurial company
with a flat organizational structure which means we can make
decisions quickly and execute flexibly. Our employment
practices and policies help our staff realize their full potential.
We are committed to developing local talent in each of our
areas of operations.
Mergers and acquisitions
In addition to organic growth, we continuously evaluate and
take an opportunistic approach to potential new acquisitions.
Corporate governance and managing risk
One of our priorities is to ensure that DNO is a responsible and
transparent enterprise. We are committed to the highest
standards of corporate governance, business conduct and
corporate social responsibility. Recognizing that the success of
an oil and gas company is directly linked to how well risks are
managed, we always seek to improve our systems designed to
identify and effectively manage risks. We respect fundamental
human rights, provide decent working conditions and are
Board of Directors’ report
8 DNO Annual Report 2025
committed to the health, safety and security of our employees,
contractors and the communities in which we operate. In
addition, the Company is continuously working to reduce the
environmental impact of our activities, including with respect to
greenhouse gas (GHG) emissions. Such environmental, social
and governance matters are discussed in the sustainability
statement, which is included in this Annual Report. The
sustainability statement has been prepared in accordance with
the European Sustainability Reporting Standards (ESRS). On
human rights and decent working conditions specifically, DNO
will also report according to the Norwegian Transparency Act
and publish its 2025 statement by 30 June 2026.
Operations review
Annual Statement of Reserves and
Resources
The Company’s Annual Statement of Reserves and Resources
(ASRR) has been prepared in accordance with the Oslo Stock
Exchange listing and disclosure requirements set out in Circular
No. 1/2013. International petroleum consultants DeGolyer and
MacNaughton (D&M) carried out an independent assessment of
the Tawke license in Kurdistan. Baeshiqa license figures,
assessed by D&M a year earlier, are kept unchanged from the
2024 ASRR. International petroleum consultants AGR carried
out an independent assessment of reserves and resources in
DNO’s producing fields and fields under development in
Norway and the United Kingdom (UK). Contingent resources
relating to discoveries in Norway, the UK and Yemen are
reported based on the Company’s own assessment. DNO's CI-
27 license (held through its indirect 33.33 percent interest in the
operating entity) in Côte d’Ivoire was independently assessed
by international petroleum consultants Beicip-Franlab in 2023.
The Dutch acreage held by DNO does not hold any reserves or
resources.
At yearend 2025, DNO’s net 1P reserves stood at 264.1
MMboe, compared to 178.9 MMboe at yearend 2024, after
adjusting for production during the year and changes due to
acquisitions and divestments, reclassifications and technical
revisions. On a 2P basis, DNO’s net reserves stood at 390.1
MMboe, compared to 281.9 MMboe at yearend 2024. On a 3P
basis, DNO’s net reserves were 478.0 MMboe, compared to
340.1 MMboe at yearend 2024. DNO’s net contingent (2C)
resources were 301.6 MMboe, up from 213.4 MMboe at
yearend 2024 after adjusting for new discoveries, volumes
moved to reserves and technical revisions.
The most important event impacting DNO’s reserves, resources
and production in 2025 was the acquisition of Sval Energi,
which held 2P reserves of 141.0 MMboe and 2C resources of
101.2 MMboe in Norway at yearend 2024. The transaction was
completed in June 2025.
2025 pro forma net production totaled 50.0 MMboe (if including
Sval Energi throughout the year). Out of the total, 19.2 MMboe
came from Kurdistan, 28.2 MMboe came from Norway, 1.4
MMboe from the UK and 1.2 MMboe from Côte d'Ivoire.
Out of DNO’s 2024 net production of 28.3 MMboe, 21.6 MMboe
came from Kurdistan, 4.8 MMboe from Norway, 1.1 MMboe
from Côte d’Ivoire and the balance from the UK.
While the addition of Sval Energi and the subtraction of
volumes produced during the year were the two dominant
factors impacting DNO’s reserves in 2025, further volumes
(16.9 MMboe on a 2P basis) were moved up from contingent
resources and added through net positive technical
revisions. Volumes moved from contingent resources to
reserves mainly relate to lifetime extensions of fields in the
Norne area in the Norwegian Sea and maturation of infill drilling
targets in producing assets. Net positive revisions relate to
several North Sea fields, in particular Kvitebjørn, Nova and
Brage.
Using total net production figures including full contribution from
the Sval Energi assets throughout the year, the Company’s net
2025 yearend Reserve Life Index (R/P) stood at 5.3 years on a
1P reserves basis, 7.8 years on a 2P reserves basis and 9.6
years on a 3P reserves basis.
Net reserves
1P
2P
3P
MMboe
2025
2024
2025
2024
2025
2024
Kurdistan
145.4
142.8
199.3
224.9
221.7
257.9
Norway
111.3
27.7
178.8
44.9
240.3
66.0
UK
1.7
1.9
3.0
2.8
4.1
4.1
Côte d'Ivoire
5.8
6.4
9.0
9.4
11.8
12.0
Total
264.1
178.9
390.1
281.9
478.0
340.1
Net contingent resources
2C
MMboe
2025
2024
Kurdistan
55.4
59.5
Norway
215.2
121.9
UK
21.2
22.1
Côte d'Ivoire
5.0
5.0
Yemen
4.8
4.8
Total
301.6
213.4
The ASRR report for 2025 is available on the Company’s
website.
Kurdistan operations
Gross production from the DNO operated Tawke license,
containing the Tawke and Peshkabir fields, averaged 70,092
boepd during 2025 (78,615 boepd in 2024). The Tawke field
contributed 27,452 boepd (29,153 boepd in 2024) and the
Peshkabir field contributed 42,641 boepd (49,462 boepd in
2024). DNO brought no new wells onstream on the Tawke
license in 2025. Notwithstanding, field potential was kept at a
high level by an active program of workovers and interventions,
and by gas injection into the Tawke field. The year-on-year
decline was primarily due to damaging drone strikes in July
2025, which depressed production capacity well into the fourth
quarter. In December 2025, DNO announced that it was
restarting Tawke license drilling.
To ensure predictable cash to support its ongoing spend, DNO
continued to sell its oil on a cash-and-carry basis under existing
contracts with local buyers at a price in the low USD 30s per
barrel.
DNO holds a 75 percent operated interest in the Tawke license
with partner Genel Energy International Limited holding the
remaining 25 percent.
On DNO’s other Kurdistan license, Baeshiqa, no production or
drilling activities took place in 2025 (5 boepd from limited well
testing in 2024). Baeshiqa does not represent any reserves in
DNO’s books, and 2C resources are kept at 38.1 MMboe,
unchanged from yearend 2024. The Company is minimizing
running costs while determining its future work program.
Board of Directors’ report
DNO Annual Report 2025 9
DNO holds a 64 percent operated interest in the Baeshiqa
license (80 percent paying interest) with partners including the
Turkish Energy Company Limited (TEC) with a 16 percent
interest (20 percent paying interest) and the Kurdistan Regional
Government (KRG) with a 20 percent carried interest.
North Sea operations
In 2025, the North Sea business was transformed by the
acquisition of Sval Energi, which added material production to
complement DNO’s already strong exploration and
development portfolio. With volumes from the acquired assets
included from 1 June 2025, reported North Sea net production
increased to an average of 54,811 boepd (15,201 boepd in
2024). Of the total, 51,008 boepd were attributable to Norway
and 3,803 boepd to the UK (13,057 boepd and 2,144 boepd,
respectively, in 2024).
With the startup of Andvare and Verdande shortly before the
end of the year, DNO held stakes in 30 producing North Sea
fields at yearend 2025, as well as four ongoing field
developments.
The Company’s seven-well 2025 exploration program resulted
in five discoveries, of which Kjøttkake (40 percent), Vidsyn (25
percent) and Mistral (10 percent) were the most notable
successes. As the Company works to shorten development
timelines in Norway, Kjøttkake is being fast-tracked for first oil
early in 2028. Kjøttkake is one of four DNO discoveries
scheduled for final investment decisions by license partnerships
in 2026. In addition, a dozen other DNO discoveries in Norway
are being studied for possible fast-track development.
West Africa operations
Net production from the Company's equity accounted
investment in Côte d'Ivoire averaged 3,287 boepd in 2025
(3,103 boepd in 2024). Through a one-third stake in the
operating company, Foxtrot International, DNO holds an indirect
nine percent interest in Côte d’Ivoire’s Block CI-27, which holds
four fields providing most of Côte d’Ivoire’s domestic gas
supply. Drilling of additional production wells is planned in 2026
on one of the four fields. An exploration well drilled in the
license in 2025 was classified as dry.
Yemen
Activity on the Yaalen field at Block 47 license in Yemen
continues to be suspended following the declaration of force
majeure in prior years due to security conditions on the ground.
Business development
In March 2025, DNO announced that it had reached an
agreement to acquire 100 percent of the shares of Sval Energi
from HitecVision for a cash consideration of USD 450 million
based on an enterprise value of USD 1.6 billion. At the time of
the announcement, Sval Energi held non-operated interests in
16 producing fields offshore Norway with net production of
64,100 boepd (2024) and a team of 93 employees. Completed
in June 2025, the acquisition transformed DNO by quadrupling
the Company’s North Sea production and 2P reserves from
yearend 2024 levels. Following the acquisition, Norway and the
United Kingdom represent nearly 60 percent of the Company’s
production and about 45 percent of its reserves.
In November 2025, DNO reported a multi-asset swap with Aker
BP ASA (Aker BP). The non-cash transaction strengthened
DNO’s portfolio by increasing its stake in the Verdande field
development in one of the Company’s core areas, Norne in the
Norwegian Sea, from 10.5 to 14 percent. In exchange, the
Company transferred its stake in the non-core Vilje field and
interests in the Kveikje discovery and three exploration licenses
to Aker BP. The swap was in line with DNO’s strategy of
highgrading its North Sea portfolio following the acquisition of
Sval Energi.
Also in November 2025, DNO announced a further streamlining
of its Norwegian Continental Shelf (NCS) portfolio through the
divestment of its 7.604 percent stake in the Ekofisk Previously
Produced Fields (PPF) project in license PL018B and PL018F
on the NCS to Orlen Upstream Norway AS (Orlen). DNO further
announced the acquisition from Orlen of a 20 percent interest in
license PL1135, which contains the Cassio prospect, as well as
a 0.8272 percent interest in the Verdande field. These were all-
cash transactions. DNO retained its 7.604 percent in PL018
containing the producing fields Ekofisk, Eldfisk and Embla as
well as a share in the Tor Unit. The acquisition of an additional
interest in Verdande brought DNO’s total interest in the
Verdande unit containing five licenses to 14.8251 percent.
Verdande, located in the Norne area, subsequently came
onstream in December 2025.
The Company continues to develop a pipeline of new business
opportunities to supplement its current positions in the Middle
East, North Sea and West Africa. It actively pursues growth
opportunities across the exploration and production lifecycle,
including exploration, development and production, both
organically as well as through potential mergers and
acquisitions.
Financial performance
Revenues, operating profit and cash
Total revenues in 2025 stood at USD 1,474.0 million (USD
666.8 million in 2024). Kurdistan revenues stood at USD 211.2
million (USD 230.8 million in 2024), while the North Sea
generated revenues of USD 1,262.8 million (USD 436.0 million
in 2024). The reported 2025 revenues were positively impacted
by the sales volumes assumed through the acquisition of Sval
Energi completed in June 2025, partly offset by lower
production in Kurdistan due to the drone strikes in July 2025
and lower realized prices both in Kurdistan and the North Sea.
The Group reported an operating profit of USD 512.8 million
(USD 6.1 million in 2024). The higher operating profit in 2025
was driven by the contribution from Sval Energi from 1 June
2025.
The Group ended the year with USD 453.7 million in cash and
USD 885.9 million in net debt (USD 899.0 million in cash and
USD 99.0 million in net cash at yearend 2024).
Net cash flow from operating activities for the year was USD
589.8 million, up from USD 413.0 million in 2024. The
significant increase in net cash flow from operating activities
was mainly due to a significant increase in EBITDA from the
Sval Energi acquisition, partly offset by higher tax payments in
the North Sea and higher interest paid. The difference between
the cash generated from operations in the cash flow statement
Board of Directors’ report
10 DNO Annual Report 2025
and the operating profit relates mainly to depreciation and
movements in working capital items.
Investing activities of USD 830.6 million (USD 354.2 million in
2024) consist of USD 814.0 million in net organic and inorganic
asset investments and USD 33.2 million in payments for
decommissioning, partly offset by USD 16.7 million cash inflow
from equity accounted investments (West Africa).
Net cash outflow from financing activities of USD 201.4 million
(inflow of USD 123.2 million in 2024) was mainly related to
repayment of debt and distribution of dividends, offset by
proceeds from borrowings.
Cost of goods sold
In 2025, the total cost of goods sold was USD 875.3 million,
compared to USD 406.9 million in 2024. The increase reflects
higher net production following the inclusion of Sval Energi,
which contributed to higher revenues as well as increased lifting
costs, depreciation and tariff expenses in the North Sea.
Impairment charges and reversals
The Group’s net impairment reversal stood at USD 56.4 million
in 2025 (net impairment charges of USD 146.0 million in 2024),
of which USD 134.9 million related to the impairment reversal of
the Bestla field in the North Sea offset by impairment charges of
USD 78.5 million in the North Sea (USD 57.0 million in 2024).
There was no impairment charge related to Kurdistan (USD
89.0 million in 2024).
Exploration costs expensed
Total expensed exploration costs for the year were USD 136.5
million, up from USD 88.9 million in 2024, mainly driven by
expensing of the Page and Horatio dry wells, higher exploration
activity and seismic acquisitions.
Capital expenditures
Total capital expenditures for the year were USD 618.0 million
in 2025 (USD 287.0 million in 2024), of which USD 21.9 million
were in Kurdistan and USD 595.9 million in the North Sea (USD
46.8 million and USD 239.3 million in 2024, respectively). Of the
total, USD 130.3 million (USD 87.2 million) were related to
exploration drilling activities. The reduction in Kurdistan capital
expenditures was a result of the Company’s cost reduction
measures, following the shutdown of Iraq-Türkiye Pipeline (ITP)
in March 2023. The increase in the North Sea followed from the
acquisition of Sval Energi.
Assets, liabilities and equity
At yearend 2025, total assets stood at USD 5,998.3 million,
compared to USD 2,966.1 million at yearend 2024. The
increase in total assets compared to last year was mainly due
to increase in goodwill, property, plant and equipment (PP&E),
intangible assets and trade and other receivables assumed
through the acquisition of Sval Energi, partly offset by reduced
cash balance. Total PP&E, intangible assets and goodwill
increased from USD 1,440 million at yearend 2024 to USD
4,686.6 million at yearend 2025.
Total liabilities were USD 4,669.8 million, compared to USD
1,886.1 million at yearend 2024. The equity ratio stood at 22.1
percent at yearend 2025 (36.4 percent at yearend 2024). The
equity ratio dropped primarily due to the Sval Energi acquisition
resulting in increased total assets and liabilities, partly offset by
increased equity from the USD 400 million hybrid bond.
Going concern
The Company regularly evaluates its financial position, cash
flow forecasts and its compliance with financial covenants by
considering multiple combinations of oil and gas prices,
production volumes and operational spend scenarios.
As required under the Norwegian Accounting Act, the
Company’s Board of Directors has conducted a review of the
going concern assumption considering all relevant information
available up to the date the DNO consolidated and Company
accounts are issued and taking into account all available
information about the future covering at least 12 months from
the end of the reporting period. The Board of Directors’ review
included, in particular, an assessment of the Group’s projected
cash reserves and access to financing arrangements, debt
maturities, operational outlook and work programs, while
maintaining appropriate headroom in respect of sound equity,
liquidity and financial covenant compliance throughout the
assessment period.
Following its review, the Board of Directors confirmed, pursuant
to the Norwegian Accounting Act section 3-3a, that the
requirements of the going concern assumption are met and that
these financial statements have been prepared on that basis.
Corporate governance
DNO’s corporate governance policy is based on the
recommendations of the Norwegian Code of Practice for
Corporate Governance.
The Articles of Association and the Norwegian Public Limited
Liability Companies Act form the corporate legal framework for
DNO’s business activities. DNO is also subject to and complies
with the requirements of Norwegian securities legislation.
The Group regularly reports on its strategy and the status of its
business activities, including through annual reports, quarterly
results and other market presentations and releases.
Equity and dividends
SHAREHOLDERS’ EQUITY
It is DNO’s policy to maintain a strong credit profile and robust
equity level. The financial covenants of the bonds issued by
DNO require that the Group maintains either an equity ratio of
30 percent or a total equity of a minimum of USD 600 million.
As of 31 December 2025, the equity ratio was 22.1 percent and
total equity was USD 1,328.5 million.
DIVIDEND POLICY AND DISTRIBUTIONS
The Board of Directors assesses on an annual basis whether
authorizations to the Board to distribute dividend should be
proposed for approval by the shareholders at the Annual
General Meeting (AGM). The assessment is based on planned
operational spend, cash flow projections and DNO’s objective of
maintaining a strong credit profile and robust capital ratios.
Based on the authorizations granted, the Board also assesses
dividend capacity prior to each resolution on dividend payment.
At the 2024 AGM, 100 percent of the votes cast approved of the
resolution to authorize the Board of Directors to approve
dividend distributions at its discretion from the date of the 2024
AGM until the date of the 2025 AGM. Following this, the Board
of Directors decided to distribute quarterly dividends of NOK
Board of Directors’ report
DNO Annual Report 2025 11
0.3125 in August and November 2024, as well as in February
and May 2025.
At the 2025 AGM, 100 percent of the votes cast approved of the
resolution to authorize the Board of Directors to approve
dividend distributions at its discretion from the date of the 2025
AGM until the date of the 2026 AGM. Following this, the Board
of Directors decided to distribute quarterly dividends of NOK
0.375 in August and November 2025, as well as in February
2026.
OTHER AUTHORIZATIONS TO THE BOARD OF
DIRECTORS
Going into 2025, the Board of Directors had authorizations from
the 2024 AGM to acquire treasury shares, increase the share
capital and raise convertible bonds until 2025 AGM, but no later
than 30 June 2025. These authorizations were not utilized.
A new authorization to acquire treasury shares was approved
by the 2025 AGM, as the Board of Directors was given the
authority to acquire treasury shares with a total nominal value of
up to NOK 24,375,000 which corresponds to 97,500,000
shares. The maximum amount that can be paid for each share
is NOK 100 and the minimum is NOK 1. The acquisition and
sale of treasury shares may take place in any way the Board
may find appropriate other than by subscription of treasury
shares. The authorization is valid until the 2026 AGM, but not
beyond 30 June 2026.
The 2025 AGM also authorized the Board of Directors to
increase the Company’s share capital by up to NOK 24,375,000
which corresponds to 97,500,000 new shares. The
authorization is time-limited until the 2026 AGM, but not beyond
30 June 2026.
In addition, the Board of Directors was given the authority to
raise convertible bonds with an aggregate principal amount of
up to USD 300,000,000. Upon conversion of bonds issued
pursuant to the authorization, the Company’s share capital may
be increased by up to NOK 24,375,000. The authorization is
valid until the 2026 AGM, but not beyond 30 June 2026.
As of the date of this report, the authorizations above have not
been utilized.
Equal treatment of shareholders and
transactions with related parties
The Company has one class of shares, and each share
represents one vote. We are committed to treating all
shareholders equally.
All transactions between the Company and related parties shall
be on arm’s length terms. Members of the Board of Directors
and senior management are required to notify the Board if they
have any direct or indirect material interest in any transaction
entered into by the Company.
Freely negotiable shares
The Company’s shares are listed on the Oslo Stock Exchange
(Euronext Oslo Børs) and are freely negotiable.
General meetings
The AGM, usually held in late May or early June each year, is
the highest authority of the Company. The minutes of the
meetings are available on the Company’s website.
AGMs are convened by written notice to all shareholders with a
known address and published on the Company’s website
together with all appendices, including the recommendations of
the nomination committee. The notice is sent and published no
later than 21 days prior to the date of the meeting. Any person
who is a shareholder at the time of the AGM can attend and
vote, provided they have been registered as a shareholder no
later than the fifth working day before the meeting.
Shareholders unable to attend a general meeting may vote
through a proxy.
In accordance with the Norwegian Public Limited Liability
Companies Act, the external auditor of DNO, or shareholders
representing at least five percent of the share capital, may
request an extraordinary general meeting to deal with specific
matters. The Board of Directors must ensure that such meeting
is held within one month after the request has been submitted.
Board of Directors’ composition
The Company’s Articles of Association require that the Board of
Directors consist of three to seven members. All members,
including the Executive Chairman, are elected with an election
period until the 2027 AGM. As of 31 December 2025, the Board
of Directors consisted of seven members, all of whom have
relevant and broad experience.
The board members’ shareholdings are specified in the notes to
the consolidated accounts.
The Board of Directors’ work
The role of the Board of Directors is to supervise the
Company’s overall management and strategic development in
accordance with the long-term interests of the Company’s
shareholders and other stakeholders.
The Board of Directors is subject to a set of procedural rules
that, among other things, define its responsibilities and the
matters to be discussed at board level. The Board of Directors
also regularly establishes work directives for the Managing
Director.
Directors’ and officers’ insurance
The Company has directors’ and officers’ liability insurance
which covers the cost of compensation claims made against the
Company’s directors and key managers (officers) for alleged
wrongful acts.
The Board of Directors’ committees
AUDIT AND RISK COMMITTEE
The Audit and Risk Committee consists of three members: Mr.
Gunnar Hirsti (chair), Ms. Elin Karfjell and Ms. Grethe Kristin
Moen. The Audit and Risk Committee monitors the financial
accounting and reporting process, including sustainability
reporting. Its responsibilities by law include monitoring the
systems for internal control, risk management and the internal
audit function, as well as reviewing and monitoring the
appointment, independence, and performance of the external
auditor.
HEALTH, SAFETY, ENVIRONMENT AND CYBER (HSEC)
COMMITTEE
The HSEC Committee consists of Dr. Najmedin Meshkati
(chair) and Ms. Anita Marie Hjerkinn Aarnæs. Its mandate is to
Board of Directors’ report
12 DNO Annual Report 2025
review the Company’s management of operational HSEC risks
and performance.
FINANCE AND INVESTMENT COMMITTEE
The Finance and Investment Committee consists of Mr. Bijan
Mossavar-Rahmani (chair) and Mr. Ferris J. Hussein. Its
purpose is to assess the Company’s financing and investment
strategies.
REMUNERATION COMMITTEE
The Remuneration Committee consists of two members: Mr.
Bijan Mossavar-Rahmani and Mr. Gunnar Hirsti. Its mandate is
to consider matters relating to the compensation of senior
management.
NOMINATION COMMITTEE
The Company’s Nomination Committee consists of Mr. Bijan
Mossavar-Rahmani, Mr. Ferris J. Hussein and one external
member, Mr. Kåre Tjønneland. All members are elected with an
election period until the 2026 AGM. Its mandate is to propose
candidates for the Board of Directors to the AGM. It also
proposes the level of remuneration for the Board of Directors
and committee members.
It is the Company’s assessment that it is in the interest of DNO
and its shareholders that the largest shareholder is represented
on the Nomination Committee. The Company will review the
composition of the Nomination Committee and consider
proposing adjustments in connection with the 2026 AGM.
REMUNERATION OF DIRECTORS
The remuneration of the Board of Directors and its committees
is decided by the AGM based on a recommendation from the
Nomination Committee. Fees reflect the Board of Directors’
responsibility, competence, workload and the complexity of the
business and are determined separately for the Executive
Chairman, the Deputy Chairman and other members. Additional
fees are applied on a uniform basis for each director’s
participation in the committees. Further information about the
Board of Directors’ remuneration is presented in the parent
company accounts (see Note 3).
Remuneration of senior management
The remuneration of the Company’s senior management,
including the Managing Director, is subject to the evaluation
and recommendation of the Remuneration Committee. The
remuneration of the Company’s Managing Director is evaluated
annually and approved by the Board of Directors.
The remuneration of senior management is presented in the
parent company financial statements (see Note 3).
Responsibility for risk management and
internal control
Risk management is integral to all the Group’s activities. Each
member of senior management is responsible for continuously
monitoring and managing risk within the relevant business
areas. Every material decision is preceded by an evaluation of
applicable business risks.
Reports on the Group’s risk exposure and reviews of its risk
management are regularly undertaken and presented to senior
management and to the Board of Directors through the Audit
and Risk Committee. The Company has an internal audit
function and a compliance function whose responsibilities
include ensuring that regulatory requirements and internal
policies are followed.
Information and communication
Our policy is to provide material information to all shareholders
in a timely manner.
DNO’s consolidated financial statements are prepared in
accordance with IFRS Accounting Standards as adopted by the
EU and additional disclosure requirements in the Norwegian
Accounting Act. Interim reports and other relevant information
are published on DNO’s website and through the Euronext Oslo
Stock Exchange.
DNO also publishes an annual financial calendar setting out key
dates and events, such as regular market presentations. The
DNO investor relations policy encourages open communication
with capital markets and shareholders. In addition to scheduled
quarterly presentations, we regularly hold presentations for
investors and analysts.
Takeover
The Board of Directors has a responsibility to ensure that, in the
event of a takeover bid, business activities are not disrupted
unnecessarily. The Board of Directors also has a responsibility
to ensure that shareholders have sufficient information and time
to assess any such bid. Should a takeover situation arise, the
Board of Directors would undertake an evaluation of the
proposed bid terms and provide a recommendation to the
shareholders as whether or not to accept the proposal. The
recommendation statement would clearly state whether the
Board of Directors’ evaluation is unanimous and the reasons for
any dissent.
Auditor
DNO’s external auditor is elected at the AGM, which also
approves the auditor’s fees for the parent company. The auditor
annually presents an audit plan to the Audit and Risk
Committee and participates in audit committee meetings. The
auditor also participates in board meetings when considered
appropriate, including an annual session with the Board of
Directors without management present.
Information about the auditor’s fees, including a breakdown of
audit related fees and fees for other services, is included in the
notes to the financial statements in accordance with the
Norwegian Accounting Act.
DNO’s external auditor is Ernst & Young AS.
Board of Directors’ report
DNO Annual Report 2025 13
Enterprise risk management
The objective of DNO’s risk management is to identify potential
exposures that may impact the Group and to manage identified
risks within strict guidelines while pursuing our business
objectives. We continuously review our risk profile,
incorporating industry-recognized risk identification and
quantification processes. The Board of Directors and its
committees also regularly monitor the Group’s risk management
systems and internal controls.
Financial risk
The Group is exposed to financial risks related to oil and gas
prices, interest rates, foreign exchange rates, liquidity and
credit. These risks are managed by the Group finance function
based on guidelines set by the Board of Directors.
In the first half of 2025, the Group completed a combined
refinancing and new debt issuance partly to fund the Sval
Energi acquisition. The Group raised USD 600 million in five-
year senior unsecured bonds (DNO06) and USD 400 million in
subordinated hybrid bonds (DNO07), the majority of which are
classified as equity under IFRS, while redeeming USD 350
million of bonds (DNO04) maturing in 2026 and repaying more
than USD 600 million of reserve-based lending facilities. This
strengthened the capital structure and extended the Group’s
debt maturity profile. In the second half of 2025, the Group also
entered into offtake-related financing agreements of up to USD
910 million linked to North Sea production.
Following the completion of the acquisition of Sval Energi in
June 2025, the Group’s debt increased, which could make the
Group more vulnerable to shifts in capital market conditions.
Interest rate risk is limited, as the Group’s bond financing
carries fixed interest rates. The offtake-related financing
facilities carry a fixed margin plus a variable reference rate and
are therefore exposed to changes in market interest rates.
However, the Group holds cash deposits that also earn floating
interest, and these deposits exceed the amount of floating-rate
debt. As a result, the Group’s net exposure to floating rates is
positive, and overall interest rate risk remains low.
In the North Sea, the Group is exposed to foreign exchange
rate risk as a considerable share of the costs and payments,
including tax payments, are denominated in NOK whereas
revenues from sale of oil and NGL are USD denominated and
gas is sold in GBP and EUR.
The Group’s activities, particularly in the North Sea, require
continued capital investment. The ability to refinance existing
debt or raise new financing, and the terms thereof, depend on
factors such as capital market conditions, investor confidence,
Group operating and financial performance and the regulatory
environment.
The Group is subject to customary covenants under its bond
facilities, including a minimum liquidity requirement of USD 40
million and a requirement to maintain either an equity ratio of at
least 30 percent or total equity of at least USD 600 million.
These covenants are considered manageable based on the
Group’s current financial position.
Offtake-related financing facilities are uncommitted, and
availability depends on production levels and commodity prices.
These facilities typically have shorter tenors than bond
financing and therefore require more frequent renewals.
Further information on financial risk management is provided in
Note 23 to the consolidated financial statements.
Entitlement risk
DNO has interests in two licenses in Kurdistan through
Production Sharing Contracts (PSCs) and has based its
entitlement calculations on the terms of these PSCs.
On 15 February 2022, the Company learned from public reports
that the Federal Supreme Court of Iraq (FSCI) had inter alia
ruled that the Kurdistan Oil and Gas Law No. 27/2007 (KOGL)
was unconstitutional, that the KRG was to hand over all oil
production from areas located in Kurdistan to the Federal
Government of Iraq (FGI) and that the FGI had the right to
pursue the nullity of the oil contracts concluded by the KRG.
DNO was not a party to these proceedings. Media thereafter
reported that on 4 July 2022, the Karkh commercial court in
Baghdad ruled that PSCs signed between the KRG and four
international oil companies (including DNO) should be voided.
Similar cases involving four other international oil companies
were reported over the ensuing weeks. The KRG reportedly
filed third party objections to these rulings (including those
understood to concern DNO) on 21 August 2022. The Company
learnt, again from media reports, that on 18 December 2024 the
Karkh Court of Appeal ruled in favor of inter alia the KRG,
confirming that the PSCs in question were valid. Thereafter,
media reported that the FGI appealed the rulings of the Karkh
Court of Appeal to the Court of Cassation and that the Court of
Cassation dismissed the appeal on 22 January 2025 and thus
confirmed that the PSCs are valid. On 23 April 2025, there were
reports in the media that during a meeting on 20 April 2025,
Federal Ministry of Oil officials conceded that federal courts
have effectively ruled that Kurdistan PSCs held by international
oil companies (IOCs) are valid, or at least, cannot be
invalidated.
In 2014, the FGI initiated an arbitration case against the
Government of Türkiye and its state-owned pipeline operator
BOTAS relating to the ITP and transportation of Kurdish oil. The
ruling of the arbitration tribunal in that matter became publicly
known on or around 24 March 2023. The ruling was in parts in
favor of Iraq. The ITP closed for export of Kurdish oil on 25
March 2023. In October 2023 Türkiye announced that the ITP
was ready to resume operations. However, the ITP remained
closed for export of Kurdish oil until 27 September 2025,
reportedly due to continued disagreements between the FGI
and the KRG on inter alia export of Kurdish oil.
With effect from 17 February 2025, the 2023-2025 Federal Iraqi
Budget Law (Budget Law) was amended. The amendment
addressed some issues of disagreement between the FGI and
the KRG and effectively facilitated the resumption of export of
Kurdish oil produced under the Kurdistan PSCs. On 26
September 2025, the Company announced that it had been
instructed to prepare for commencement of oil exports through
the ITP on 27 September 2025, following interim agreements
reached between the FGI, the KRG and a group of IOCs
(Interim Tri-Party Export Arrangement). The Company stated
that it would deliver the KRG’s share of sales from the Tawke
license for export, while the Tawke Contractors’ share would
continue to be sold to local buyers under existing contracts. On
27 September 2025, export of Kurdish oil through ITP resumed.
The Company notes that the term of the Interim Tri-Party Export
Arrangement ended at yearend 2025. Payment levels are
Board of Directors’ report
14 DNO Annual Report 2025
reportedly to be adjusted in 2026 based on an evaluation of
“commercial models and contracts” by a Baghdad-designated
consultant. On 7 January 2026, there were reports that the
arrangement had been extended to 31 March 2026 and that the
SOMO had signed a contract with a consulting firm to carry out
the evaluation.
To ensure steady and predictable cash in support of new
investments to raise production, DNO continued post export
resumption to sell its entitlement oil to local buyers under
existing contracts at a price in the low USD 30s per barrel on a
cash-and-carry basis. These buyers, in turn, delivered the oil to
the export pipeline under arrangements negotiated with
Kurdistan.
Due to the disagreements between the FGI and the KRG,
economic conditions in Kurdistan and limited oil export
channels, DNO has historically faced constraints in fully
monetizing the oil it produces in Kurdistan. There is no
guarantee that oil can be exported or sold locally in sufficient
quantities or at prices required to sustain DNO’s operations and
investment plans or that the Group will promptly receive its full
entitlement payments for any oil it delivers. Export sales have
not always followed the PSC terms. Furthermore, there has also
previously been uncertainty related to receipt of payments for
oil sold to the KRG but notwithstanding sometimes lengthy
delays, payments have ultimately been received by DNO.
At yearend 2025, the Company was owed a total of USD 291.5
million, excluding interest, by the KRG mainly related to export
oil sales to the KRG for the months October 2022 through
March 2023. These receivables are past due (see Note 14).
The KRG has repeatedly stated that it is and remains
committed to its PSCs.
Timing of payments for previous oil sales by the KRG is
uncertain and is influenced by several factors, including the
overall financial and political environment in Kurdistan. The
Company continues to engage with the KRG regarding
recovery of the arrears and payment terms and conditions for
its possible participation in future oil exports. DNO believes the
restart of pipeline exports represents an important step towards
normalizing the operating environment and aims to access
export markets or export prices later in the year. Historically,
DNO has successfully recovered overdue receivables, including
through the 2017 Receivable Settlement Agreement and the
2021 arrangements implemented following the Covid-related
payment suspension.
The Company’s PSCs include rights for the host government to
audit the PSC accounts (PSC audits) and there is uncertainty
relating to the outcome and impact of any such audit on the
Company’s recovery of costs and financial results. During 2024
in Kurdistan, PSC audits were carried out with respect to the
Baeshiqa 2018-2019 Accounts and the Tawke 2021 Accounts.
In 2025, PSC audits on the Baeshiqa 2020-2022 Accounts and
the Tawke 2023 Accounts were initiated.
Operational risk
DNO is exposed to operational risks across its portfolio.
Operational risk applies to all stages of upstream operations,
including exploration, development and production. Failure to
manage operations safely and efficiently can manifest itself in
project delays, cost overruns, higher-than-estimated operating
costs and lower-than-expected oil and gas production and/or
reserves. Exploration activities are capital intensive and involve
a high degree of geological risk. Sustained exploration failure
can affect the future growth and upside potential of DNO. Our
ability to effectively manage and deliver value from our
exploration, development and production activities is dependent
on the quality of our staff and contractors. Inefficiency or
interruption to our supply chain or the unwillingness of service
contractors to engage in our areas of operation may also
negatively affect operations.
DNO seeks to mitigate its operational risk through diligent
follow-up and management of both operated and partner-
operated assets. Defined targets and milestones are set for all
exploration and development projects, against which progress
is continuously monitored, allowing for early identification of
complications and timely remedial action. Risks of inefficiency
or interruption in the value chain are managed through close
monitoring of operational progress, efforts to eliminate the
probability of occurrence, as well as plans to mitigate adverse
consequences of such incidents should they occur.
In July 2025, explosive drone strikes by unidentified parties
impacted the facilities and operations of a number of IOCs in
Kurdistan. On 16 July 2025, DNO announced a temporary
suspension of operations at the Tawke license following three
explosions in the Tawke and Peshkabir fields. No individuals
were injured, but surface processing equipment at Peshkabir
and an oil storage tank at Tawke were hit. On a test basis, DNO
restarted production from Tawke in early August 2025, while
Peshkabir restarted later in the month. As of early December
2025, production capacity had been fully restored following
repairs. The safety and security of personnel is paramount to
DNO, and the Company has upgraded physical protection (for
example, blast walls) and implemented new procedures and
additional oversight to safeguard staff and operations in
Kurdistan. In parallel, the Company is coordinating closely with
the KRG to ensure that all necessary steps are taken to
maintain a secure and stable operating environment for DNO
employees and contractors.
The Company’s exposure to operational disruptions at any
single asset has been reduced by the broadening of the
portfolio following the 2025 acquisition of Sval Energi.
Political risk
Parts of our portfolio are located in countries where political,
social and economic instability may adversely impact our
business. Relevant political developments on both the federal
and regional level in Iraq and otherwise in the Middle East are
closely monitored by the Group, although the impact on our
operations has been limited.
The Company notes the implications for commodity prices and
potential interruptions of supply chains and third-party services
from the ongoing conflicts. DNO is monitoring international
sanctions and trade control legislation to ensure compliance
and mitigate the potential impact on the Company’s operations.
The June 2025 acquisition of Sval Energi in Norway increased
the diversification of the Group’s asset base and reduced the
relative exposure to operations in Kurdistan.
Cybersecurity risk
DNO is exposed to cybersecurity risks due to the increasing
digitalization of its operations and reliance on IT and operational
technology systems. Cyber incidents such as unauthorized
access, malware or ransomware attacks could disrupt
operations, compromise sensitive information and result in
financial loss or reputational damage. Some cyber attacks are
Board of Directors’ report
DNO Annual Report 2025 15
driven by political, financial or ideological motives and may be
more sophisticated and persistent as a result. The Company
seeks to mitigate these risks through established governance
structures, risk assessments, technical security controls,
monitoring and incident response procedures, as well as
employee awareness training and oversight of key suppliers.
Stakeholder risk
In order to operate effectively, the Company is maintaining
productive and proactive relationships with its stakeholders,
host governments, business partners and the communities in
which we operate. Failure to do so can result in difficulties in
progressing initiatives as well as delays to ongoing operations.
Other risks
Environmental, climate-related, security and compliance risks
are described in the sustainability statement.
HSE performance
Our HSE standards, procedures and protocols are based on the
following principles:
• Avoid harm to all involved in, or affected by, our operations;
• Minimize and where possible eliminate the impact of our
operations on the environment;
• Comply with all applicable legal and regulatory requirements;
and
• Achieve continuous improvement in HSE performance.
During 2025:
• Our Total Recordable Injury Frequency (TRIF) was 1.18,
compared to 1.06 in 2024;
• There were zero Lost Time Injuries during the year,
compared to two in 2024;
• There was no Serious Vehicle Accident recorded with
distances driven of 2.2 million kilometers;
• At the operated Tawke license, the Company has been
operating gas capture and injection facilities since 2020. In
2025 these facilities contributed to avoidance of CO
2
e
emissions through capturing and injecting associated gas
that would otherwise have been flared;
• In 2025, the Tawke license completed a waste heat recovery
project. The initiative was fully commissioned and operational
ahead of the winter season in 2025 and achieved a crude
inlet temperature increase of about 16 degrees Celsius (4
MW gain), saving around 1.5 million liters of diesel annually,
cutting CO₂e emissions by roughly 4,000 tonnes per year.
The project is also expected to reduce demulsifier usage by
up to 55,000 liters per year, improving operational efficiency
and reducing chemical handling and disposal requirements;
• The number of oil spills stood at six, compared to four in
2024;
• The total volume of spills was 707 barrels compared to 38
barrels in 2024. All were cleaned up, ensuring no lasting
environmental impact;
A key metric for assessing and benchmarking the Company’s
safety performance is the Total Recordable Injury Frequency
(TRIF). In 2025, DNO had a TRIF of 1.18 in its operated
activities, up from 1.06 in 2024. The 2025 figure is above the
industry average TRIF of 0.81, based on data from International
Association of Oil and Gas Producers (IOGP) for 2024, the
latest year for which data is available. The increase is mainly
due to a rise in medical treatment cases involving contractors.
Over the past two years, DNO has focused safety programs on
employees, including How We Work Safely and the Behavioral
Safety Program which contributed to zero work-related
accidents among employees in Kurdistan in 2025. To reduce
accidents among contractors, the 2026 plan is to strengthen
support through line management and extend behavioral safety
training, including the rollout of How We Work Safely Phase II.
In 2025, DNO continued the roll-out of initiatives to improve
traffic safety at its Kurdistan sites. Driving represents a
considerable personnel risk within onshore oil and gas
operations, especially in the value chain (e.g., contractors). To
improve driving safety, portable In-Vehicle Monitoring System
(IVMS) units, already installed in all DNO vehicles, were also
introduced in contractor vehicles entering DNO sites. The IVMS
gives the driver feedback in real-time about driving behaviors
and allows DNO to monitor speed, acceleration and harsh
braking, which are linked directly to at-risk driving habits. This
and other initiatives contributed to improvement in road safety,
leading to zero serious driving incidents in 2025.
In 2025, DNO continued its “Being Safe 24/7 – Work Safe, Safe
Home” campaign in Kurdistan, which aims to bridge work and
home life by making safety a central part of employees’
everyday activities both at work and with their families.
Going forward, DNO seeks to further improve HSE training in
the field in Kurdistan. To improve retention and overcome
language barriers, the Company is moving away from text-
based training and has recently introduced virtual training
methods.
Further information about HSE performance can be found in the
sustainability statement under Environment and Social sections.
Board of Directors’ report
16 DNO Annual Report 2025
Organization and personnel
At yearend 2025, DNO had a workforce of 1,159 employees, of
which 15 percent were women. 67 of these were based at the
Company’s headquarters in Oslo and 1,092 were engaged
across our international operations, including in business unit
offices in Dubai, Erbil and Stavanger.
At yearend 2025, the Board of Directors consisted of seven
members, three of whom are women (43 percent). Senior
management consisted of six men and three women (33
percent).
The Company is committed to maintain a working environment
with equal opportunities for all based on qualifications,
irrespective of gender, ethnicity, sexual orientation, or disability.
DNO continues to recruit and promote women, who
represented 15 percent of the Group’s overall workforce and 33
percent of employees in managerial, administrative and other
non-field operational positions as of yearend 2025 (14 and 33
percent, respectively, in 2024).
There were no incidents of discrimination reported through the
internal mechanisms for raising concerns in 2025.
Sickness absence in the Group in 2025 was 1.84 percent,
compared to 1.77 percent in 2024.
Gender diversity at DNO in Norway
In Norway, DNO had a workforce of 293 employees at yearend
2025, of which 37 percent were women. A total of three
employees worked part time during 2025, of which two were
women. No employees in DNO work part time unless they have
initiated or proposed it themselves. During 2025, a total of 17
employees were on parental leave. Women had an average of
18.5 weeks of parental leave and men had an average of 7.8
weeks of parental leave.
Salary mapping of 2025 average women’s salaries and
bonuses compared to those of their male colleagues in the
same job category is shown below in descending order of
seniority for Norway-based employees:
Women's compensation as percentage of those of
men's:
Base salary
Bonus
Level 1
83%
73%
Level 2
101%
95%
Level 3
99%
95%
Level 4
91%
84%
Level 5
98%
119%
All employees
84%
79%
Men and women with the same level of jobs, with equal
professional experience and who perform equally receive the
same pay in DNO. The complexity of the job, discipline area
and work experience affect the pay level of individual
employees.
Securing gender diversity and diversity in general is an
important part of our human resources processes such as
recruitment, succession planning, promotions, performance
management and employee development.
DNO working environment in Norway
In Norway, DNO has a Working Environment Committee (WEC)
at each location as required under the Norwegian Working
Environment Act. The committees have an important role in
monitoring and improving the working environment and in
ensuring that the Company complies with laws and regulations
in this area. The Company is committed to maintaining an open
and constructive dialogue with the employee representatives
and arranged meetings on a regular basis throughout the year.
In the Board of Directors’ view, the working environment in DNO
during 2025 was good. For Norwegian locations, this was
confirmed through WEC meetings and employee satisfaction
surveys.
More information about organization and personnel can be
found in the sustainability statement under the Social section.
Leading personnel remuneration policy
The 2025 remuneration of the Company’s senior management
was based on the latest approved remuneration guidelines at
the 2023 AGM, as published on the Company’s website. The
Remuneration Report for 2025 is available on the Company’s
website.
Board of Directors’ report
DNO Annual Report 2025 17
Senior management
CHRIS SPENCER
Managing Director
Mr. Spencer joined DNO in 2017. Mr. Spencer previously served as the CEO of Rocksource ASA and in various
commercial and technical roles at Royal Dutch Shell and BP. He is a Chartered Engineer with the Institution of
Chemical Engineers in the United Kingdom.
ERLEND WOLLAN EINUM
Chief Business Development Officer
Mr. Einum joined DNO in 2024, coming from an executive position at a privately owned E&P independent. Prior to
this, he spent 16 years at Pareto Securities, where he was a senior partner in the firm’s investment banking division.
He holds a finance degree from the Norwegian School of Economics.
HALVOR ENGEBRETSEN
Managing Director DNO Norge AS
Mr. Engebretsen joined DNO in 2025 from Sval Energi, where he served as CEO. He previously held various senior
roles at Equinor. Engebretsen holds a master’s degree in biology from The Arctic University of Norway (UiT) and has
received management training at BI Norwegian Business School.
TONJE PARELI GORMLEY
Group General Counsel
Ms. Gormley joined DNO in 2018. She was previously a partner in Arntzen de Besche law firm. She holds a law
degree from the University of Oslo and a diploma in law from the London Metropolitan University.
SAMEH HANNA
General Manager Middle East
Mr. Hanna joined DNO in 2022. He previously served as President of MI-SWACO worldwide and in various senior
roles at SLB. Mr. Hanna holds a Bachelor of Science in Electronics from Ain Shams University, Cairo, and has
completed management education programs at MIT Sloan, Lausanne School of Economics and Harvard University.
LINN HOEL
Chief Commercial Officer
Ms. Hoel joined DNO in 2024, coming from a position as corporate advisor with MP Energy Advisory. She previously
served in managerial roles at Wintershall Dea and Equinor. Ms. Hoel holds a law degree from the University of Oslo.
BIRGITTE WENDELBO JOHANSEN
Chief Financial Officer
Ms. Johansen joined DNO in 2025. She previously served as CFO of Reach Subsea and has a background in
banking and finance. Ms. Johansen holds a Master of Science in business from BI Norwegian Business School and
the Blue MBA from Copenhagen Business School.
GEIR ARNE SKAU
Chief Human Resources and Corporate Services Officer
Mr. Skau joined DNO in 2019. Mr. Skau previously served in the Norwegian Armed Forces and in various human
resources leadership roles at TechnipFMC. He holds an Executive Master of Management in Energy from BI
Norwegian Business School-IFP School and trained at the Norwegian Military Academy.
ERLING MOEN SYNNES
Chief Information Officer
Mr. Synnes joined DNO in 2019 having previously held managerial roles in various IT companies, most recently as
Vice President Global IT in PGS. Mr. Synnes has a Master of Science degree in Technical Cybernetics from the
Norwegian University of Science and Technology (NTNU).
Board of Directors’ report
18 DNO Annual Report 2025
Parent company
The parent company, DNO ASA, reported a net profit of
USD 231.6 million in 2025, up from a net profit of USD 14.1
million in 2024. Total assets as of 31 December 2025 stood at
USD 2,256.9 million, up from USD 1,432.7 million at yearend
2024. The parent company’s cash balance at yearend 2025
was USD 228.8 million, down from USD 746.2 million at
yearend 2024. Total liabilities increased from USD 936.5 million
at yearend 2024 to USD 1,294.6 million at yearend 2025. Total
equity at yearend 2025 was USD 962.4 million, up from USD
496.2 million in 2024. The equity ratio was 42.6 percent (34.6
percent at yearend 2024).
Total dividend of USD 129.7 million was paid in 2025. In
addition, a dividend of USD 36.3 million was accrued at
yearend 2025 in the parent company accounts following board
approval in February 2026. The Board of Directors will
recommend that the shareholders approve the transfer of the
net profit of USD 231.6 million to retained earnings at the
forthcoming AGM.
Main events since yearend
On 5 February 2026, the Company announced that pursuant to
the authorization granted at the 2024 AGM, the Board of
Directors approved a dividend payment of NOK 0.375 per
share. Payment of the dividend was made on 25 February
2026.
Following the U.S.-Israeli air war on Iran that started on 28
February 2026, DNO temporarily shut down production and
drilling operations on the Tawke license in the Kurdistan region
of Iraq and evacuated its staff. The Company continues to
monitor developments closely to assess when it can safely and
securely resume operations.
Sustainability statement
The following section contains a sustainability statement as
required by the Norwegian Accounting Act, section 2-3. The
consolidated financial statements begin on page 51.
Oslo, 11 March 2026
Bijan Mossavar-Rahmani
Executive Chairman
Gunnar Hirsti
Deputy Chairman
Elin Karfjell
Director
Anita Marie Hjerkinn Aarnæs
Director
Najmedin Meshkati
Director
Grethe Kristin Moen
Director
Ferris J. Hussein
Director
Christopher Spencer
Managing Director
Board of Directors’ report
DNO Annual Report 2025 19
Sustainability statement
20 DNO Annual Report 2025
Sustainability statement
Table of Content
1. General Information 20
1.1 Basis for preparation 20
1.2 Governance 20
1.3 Strategy 21
1.4 IRO management 23
2. Environment 24
2.1 Taxonomy disclosure 24
2.2 Climate change 25
2.3 Pollution 28
2.4 Biodiversity and ecosystems 30
2.5 Resource use and circular economy 31
2.6 Reporting policies and methodology 32
3. Social 33
3.1 Own workforce 33
3.2 Working conditions 35
3.3 Health, safety and security 36
3.4 Equal treatment 37
3.5 Reporting policies and methodology 38
3.6 Workers in the value chain 38
3.7 Affected communities 40
4. Governance 41
4.1 Business conduct 41
5. Appendices 44
1. General information
1.1 Basis for preparation
General basis for preparation of the sustainability
statement
DNO’s sustainability statement has been prepared in
accordance with the Norwegian Accounting Act and the
European Sustainability Reporting Standards (ESRS). It
covers DNO’s own operations and material upstream and
downstream value chain, as defined in section 1.3 Strategy.
DNO is a Norwegian oil and gas group active in the Middle
East, North Sea and West Africa. In the Middle East and North
Sea, the Group holds interests in both operated and partner-
operated licenses, while in West Africa its interest is held
through a joint venture and is treated as an investment for the
purpose of financial and sustainability reporting. Unless
otherwise stated, the method of consolidation is equity share,
in line with the financial statement. Additionally, for certain
metrics related to climate change and pollution, DNO also
reports the partners’ share in licenses where it has operational
control of the activities. DNO completed the acquisition of 100
percent of the shares of Sval Energi in June 2025, which is
included in the consolidated group from 1 June 2025.
Metrics were collected from DNO's business units through the
Group’s reporting systems and were based on direct
measurements for the majority of Scope 1 and 2 greenhouse
gas (GHG) emissions and energy consumption. For certain
metrics – primarily those related to the value chain, where
DNO has limited access to reliable data – estimates were
made using secondary sources and industry averages
resulting in an approximate level of accuracy. Where
applicable, we disclose information on measurement
uncertainties and the assumptions made by DNO.
1.2 Governance
The role of the administrative, management and
supervisory bodies
The Board of Directors consists of seven members, three of
whom are women (43 percent). The Group’s largest
shareholder, Bijan Mossavar-Rahmani, serves as Executive
Chairman and all other members of the Board are independent
(86 percent). The Board has five advisory committees: Audit
and Risk (two women, one man); Health, Safety, Environment
and Cyber (HSEC) (one woman, one man); Finance and
Investment (two men); Nomination (three men); and
Remuneration (two men). There are no executives or
representatives elected by the employees on the Board or any
of the advisory committees. Together, the Board of Directors
holds extensive industry and financial experience and uses
outside experts when needed to complement skills and
experience relevant to, for instance, sustainability matters. The
Board of Directors and the advisory committees have oversight
of all material impacts, risks and opportunities (IROs) in the
Group.
The Group’s senior management, which consists of nine
members (six men, 67 percent and three women, 33 percent),
is responsible for the overall conduct of DNO’s business
activities, including managing material IROs. Each member of
DNO’s senior management team has extensive experience
within the oil and gas industry and their area of responsibility.
To ensure regional and operational expertise in the team, the
Kurdistan and North Sea region each have a dedicated
business unit head, holding the titles of General Manager and
Managing Director, respectively. For convenience, both
positions are referred to as General Manager for the remainder
of this statement. The rest of the members are responsible for
areas such as finance, human resources, commercial,
business development, information technology and legal and
compliance. Regarding responsibilities for sustainability
reporting and targets, each member follows up their area of
expertise and responsibility, and the Group’s Managing
Director has overall responsibility. Senior management had
meetings to discuss, align and conclude on IROs of the Group.
In addition, specialists within the fields of environmental, social
and governance (ESG) are employed to ensure proper
knowledge and internal controls within the Group.
Sustainability matters addressed by the administrative,
management and supervisory bodies
Corporate and operational risks are reported to the Board of
Directors through the HSEC and Audit and Risk committees on
a quarterly basis. The HSEC committee is, amongst other
things, responsible for overall supervision of the environmental
performance of the Group while the Audit and Risk committee
focuses on regulatory and financial compliance as well as
sustainability reporting. Senior management and other senior
managers participate in the HSEC and Audit and Risk
committee meetings. Senior management and employees
present at the HSEC committee include the Managing
Director, the Board Secretary, the General Managers and the
HSE managers of DNO’s two business units (i.e., Kurdistan
and the North Sea) and the Chief Information Officer. Senior
management and employees present on the Audit and Risk
committee include the Managing Director, Chief Financial
Officer, Head of Finance and Accounting, Head of Internal
Audit and Risk Management and the Board Secretary. The
Head of Compliance is also present at these meetings on a
regular basis.
Sustainability statement
DNO Annual Report 2025 21
The HSEC committee is a forum in which the Group’s HSEC
performance is monitored, forward plans and strategies related
to HSEC are discussed and the Group's HSSE policy is
adjusted if necessary. The topics covered at these meetings
during the reporting period included GHG, water and
biodiversity related data. GHG emissions related topics
discussed in the committee included GHG emissions
management policy, projects to reduce the Group’s GHG
emissions, GHG verification standards and methodologies and
developments in the regulatory environment applicable to
DNO’s operations. During 2025, the Audit and Risk committee
supervised the work associated with DNO’s Double Materiality
Assessment (DMA), as described in section 1.3 below.
DNO’s external auditor performs limited assurance procedures
over DNO’s sustainability report. The assurance activities
performed are described in the assurance statement.
Integration of sustainability-related performance in
incentive schemes
DNO’s guidelines on remuneration of senior personnel were
approved by the Group’s Annual General Meeting in May
2023. The main purpose of the Group’s remuneration policy is
to contribute to the implementation of the Group’s overall
business strategy in order to achieve the Group’s long-term
objectives and maximize value creation for the Group and its
shareholders by attracting, retaining and motivating highly
qualified employees.
Environmental performance, including GHG and climate
change related topics, is evaluated as part of the annual
appraisal and compensation process for the General
Managers of the Group’s two business units, with the result of
the appraisal influencing their bonuses. The share of their
bonuses related to this topic is about five percent. The Chief
Supply Chain Officer also has performance targets tied to
climate-related engagement with suppliers. As environmental
performance is included in an overall judgement, the
percentage of variable remuneration due to sustainability
factors cannot be specified. The Group does not have other
incentive schemes specifically linked to sustainability matters.
Statement on due diligence
The mapping of the sustainability statement to the due
diligence process is included in Appendix 1.
Risk management and internal controls over sustainability
reporting
Our risk management and internal control systems cover all of
our operations to effectively identify, assess and mitigate risks.
The Group has implemented a structured approach to
sustainability reporting, with quarterly updates provided to the
HSEC and Audit and Risk committees. Key risks related to
sustainability reporting include data completeness and
accuracy, as well as alignment with the reporting framework.
Our internal control procedures seek to address these risks by
ensuring data accuracy, reliability and compliance through
clearly defined roles and responsibilities, guidelines for data
collection and validation processes. In 2025, our focus has
been on ensuring a consistent interpretation of the ESRS
requirements with our peers and the wider industry and on
preparing for the announced changes from regulatory bodies.
We also integrated the Sval Energi business into the
sustainability statement. We continuously seek to improve our
control framework and data quality to ensure continued reliable
reporting in the future.
1.3 Strategy
Strategy, business model and value chain
DNO’s vision is to remain a leading, growth-oriented oil and
gas exploration and production group seeking to deliver
attractive returns to shareholders by finding and producing oil
and gas at low cost, at an acceptable level of risk and in a
socially responsible and environmentally sensitive manner. To
achieve this vision, the Group’s strategic priorities with respect
to ESG factors include:
• Encouraging an entrepreneurial culture and attracting the
best talent in the industry;
• Recognizing corporate governance responsibilities and
commitments to managing environmental impacts and
risks to the business;
• Being a leader in HSSE best practices in all areas of
operation; and
• Minimize GHG emissions in both operated and partner-
operated assets.
We seek to meet our commitments efficiently and
transparently, and expect the same of our host governments,
partners, employees, contractors and local communities. We
treat all stakeholders fairly and respectfully. DNO, Norway’s
oldest oil and gas company, is today an international one, with
more than one-half of our shares owned by non-Norwegians
and with a Board of Directors and senior management
representing six nationalities. Even so, we proudly fly the
Norwegian flag and apply our home country’s best practices
wherever we operate, including high health and safety
standards, minimizing our environmental footprint, active
engagement with local communities and zero tolerance for
corruption. We are dedicated to the health and safety of our
people, to the development of our host communities and to
responsible environmental practices. We adhere to high
standards of corporate governance and business conduct. We
foster an open, inclusive and diverse culture. We are
responsive to our employees’ needs. We want to build on
DNO’s success story, and we also want to help our employees
create their own success stories.
In 2025, DNO reported revenues of USD 1,474 million, of
which USD 577 million was related to gas-oriented activities
and USD 802 million was related to oil-oriented activities. DNO
has no revenue from EU Taxonomy-aligned economic
activities. At yearend 2025, DNO had a workforce of 1,159
employees, of which 67 were based at the Company’s
headquarters in Oslo and 1,092 were engaged across our
international operations, including in business unit offices in
Dubai, Erbil and Stavanger.
Our value chain ranges from material extraction to the delivery
of energy. DNO is dependent on inputs such as raw materials
for construction of drilling rigs, wellheads, pipelines, separation
units, storage tanks and processing plants, among other
things, which we define as upstream activities. In our own
operations we utilize resources, including energy and water
and occupy physical space for operations onshore and
offshore. The Group’s main outputs are oil and gas. The
downstream activities are defined as sale and distribution of oil
and gas produced through our own and partners’ operations.
Partnerships and constructive relationships with our key
stakeholders in the value chain are crucial to our value
creation.
Sustainability statement
22 DNO Annual Report 2025
Interests and views of stakeholders
Wherever DNO operates, we make a concerted effort to create
mutually beneficial relationships, balancing stakeholders’
interests with our own as a 54-year-old public company with
some 16,000 shareholders. Our most relevant stakeholders
are shareholders and other investors, authorities, suppliers,
license partners, banks, insurance companies, employees and
local communities. DNO engages with stakeholders in
meetings organized with each group. In addition, formal
correspondence as well as informal contact with stakeholders
occurs on an almost daily basis. The Group uses such
opportunities not only to inform stakeholders of business
performance, but also to gain feedback needed to reflect each
stakeholder’s interests and views when identifying IROs. By
actively engaging stakeholders across its value chain, DNO
ensures that their perspectives influence priorities and risk
management and strengthen the relevance of sustainability
statement. The main concerns of the stakeholders are
business performance and compliance with regulations.
Material IROs and their interaction with strategy and
business model
Being an oil and gas operator with activities in the Middle East,
North Sea and West Africa, a number of the identified material
IROs are closely linked to the Company’s strategy and
business model, while others are inherent to the nature and
geography of the business. Across the value chain, different
areas have been identified where the Group has potential and
actual negative impacts on the environment and on society. At
the same time, DNO also has areas where the Group
contributes with potential and actual positive impacts,
particularly related to social topics. Through the DMA process,
DNO has also identified some financial risks and opportunities.
DNO has assessed its resilience against the scenarios from
the International Energy Agency (IEA) World Energy Outlook
(WEO) report and will consider conducting a more detailed
resilience analysis during 2026. This is described in more
detail within section 2.2 Climate change.
In 2025, our material ESG risks and opportunities have not
materially affected our financial position and we do not expect
significant adjustments related to these matters in the next
reporting period. DNO has not allocated any financial
resources to the strategy over the short, medium or long term.
However, the IROs listed below will continue to be monitored
for potential impacts on strategy and decision-making.
The table below presents the IROs DNO identified and
assessed as material as a result of the DMA process. A brief
description, including the type of IRO, time horizon, where in
the value chain the IRO is relevant and DNO’s involvement
with the material IROs, is included in the table. Information on
the relevant topics and how the Group responds to the effects
of the impacts and risks are included in the relevant topical
sections.
Material ESRS
topics
Impact, risk or opportunity description
Type of
materiality
Part of the
value chain
Time horizon
DNO’s
involvement
with the IRO
GHG emissions in own operations, i.e., from oil and gas exploration and production activities from DNO’s
onshore (Kurdistan) and offshore (North Sea) activities.
Actual negative
impact
Own operations
Long term
Caused by
GHGs released into the atmosphere as petroleum produced by DNO is consumed by end customers.
Actual negative
impact
Further use
Long term
Contribute
indirectly
GHG emissions from upstream and downstream value chain, e.g., purchased goods and services, use of
steel, cement and chemicals, waste generation, downstream transport and processing etc.
Actual negative
impact
Supply chain
Long term
Contribute
indirectly
Energy consumption from oil and gas production (i.e., burning of gas, use of diesel and use of power from
shore) in DNO's own operations.
Actual negative
impact
Own operations
Short-Long
term
Caused by
Regulations and policies may be introduced at regional, national and global levels, adversely affecting
DNO’s financial results.
Financial risk
Own operations
Long term
N/A
E1: Climate
change
As a first mover in reduced flaring emissions in Kurdistan, DNO may have an advantage in seeking new
opportunities.
Financial
opportunity
Own operations
Short term
N/A
SOx, NOx, and NMVOC emissions to air from oil and gas exploration and production activities and from
use of DNO petroleum products when consumed by end customers.
Actual negative
impact
Supply chain,
own operations,
further use
Medium term
Caused by
Discharges of treated produced water from DNO's North Sea fields contain residual oil and chemicals
(within regulatory threshold) that pose potential negative environmental impact.
Potential
negative impact
Own operations
Short/
medium term
Caused by
Risk of acute incidents causing discharges to air and sea. This could e.g., be due to blow-out during drilling
or unintentional events during production.
Potential
negative impact
Own operations
Short/
medium term
Caused by
E2: Pollution
Accidental discharge with major impact on living organisms and food resources can lead to loss of license
to operate, fines, liabilities or major reputational damage.
Financial risk
Own operations
Short/
medium term
Caused by
Potential negative impacts on biodiversity from accidental discharges to sea, also in areas of high
biodiversity value (ref. DNO fields in or near particularly valuable and vulnerable areas).
Potential
negative impact
Own operations
Short term
Caused by
Incidents or non-compliance with rules and regulations for operations in biodiversity sensitive areas can
lead to legal, financial and reputational risks for DNO.
Financial risk
Own operations
Short term
Caused by
E4: Biodiversity
and ecosystems
GHG emissions contribute to global warming, which is widely recognized as a driver of biodiversity and
ecosystem loss.
Actual negative
impact
Own operations
Further use
Long term
Contribute
indirectly
Large resource inflows for constructing new wells and infrastructure (exploration and field developments in
the North Sea).
Actual negative
impact
Supply chain
Medium term
Contribute
indirectly
Use of raw materials in DNO’s own operations represents a cost risk as material prices may be volatile.
Financial Risk
Own operations
Medium term
N/A
Large resource outflows associated with decommissioning oil and gas installations with material amounts
of steel and other materials to be recycled and reused.
Potential positive
impact
Own operations
Medium term
Contribute
directly
E5:
Circular
Economy
Construction, repair, maintenance, drilling and decommissioning activities generate hazardous and non-
hazardous waste across the supply chain.
Actual negative
impact
Own operations
Short/medium
term
Caused by
Due to the 24/7 nature of oil and gas operations and potentially high-consequence of some decisions,
work-induced stress may impact some employees’ health.
Potential
negative impact
Own operations
Short term
Caused by
DNO operates in an industry that is exposed to a potentially high risk of personnel injuries. These injuries
range from minor to major.
Potential
negative impact
Own operations
Short term
Caused by
S1: Own
workforce
The industry and our areas of operations are male dominated. There is an inherent risk of gender disparity
in some of DNO’s operations.
Potential
negative impact
Own operations
Short term
Caused by
Sustainability statement
DNO Annual Report 2025 23
1.4 IRO management
Description of the process to identify and assess material
IROs
During 2025, DNO refreshed the DMA conducted in 2024. The
DMA has identified, among other things, sustainability matters
that may significantly impact DNO’s financial performance (i.e.,
financial materiality) and the Group’s actual and potential
impact on people, the environment and society (i.e., impact
materiality). Identified matters are not limited to the Group’s
operations but also include supply chain activities and export,
use and end-of-life activities. The process encompasses all
DNO's operations, including operated and partner-operated
assets. In connection with this year’s assessment, two new
environmental topics, Biodiversity and Pollution to Sea, were
deemed material because of an increased presence on the
NCS through the acquisition of Sval Energi.
DNO conducted the process in four phases following
guidelines from the European Financial Reporting Advisory
Group (EFRAG). The Group identified impacts using a bottom-
up approach, preparing a long list of IROs based on DNO's
value chain activities, business model and strategy. DNO then
connected the IROs to the relevant ESRS topics and included
entity-specific IROs relevant to the oil and gas industry. After
receiving feedback from stakeholders, the list was adjusted
accordingly. The views of stakeholders collected during the
DMA were presented to senior management and the Audit and
Risk committee to support the assessment of the identified
IROs.
Participants across the Group have been involved in
identifying and selecting which IROs to report. This process
included DNO’s senior management led by the Managing
Director, supported by guidance and feedback from the
Board’s Audit and Risk committee.
DNO’s four-phase methodology for identifying the IROs
Phase 1: Understand
In Phase 1, DNO's value chain and activities were mapped in
a sustainability context. The value chain was divided into main
activities, each containing various IROs within all ESG topics.
Phase 2: Identify
In Phase 2, actual and potential IROs across DNO's entire
value chain and locations were identified leveraging
knowledge and information from DNO’s previous sustainability
work, as well as dialogue with internal and external
stakeholders.
Phase 3: Evaluate
In Phase 3, we evaluated and scored the identified IROs
based on consequence and likelihood, following the
methodology outlined in the ESRS. Each score determined
whether the IRO is of low, medium or high significance.
We based the scoring system on our enterprise risk
management (ERM) system, but this was conducted as a
separate exercise independent of other risk assessments.
We assessed the score of an impact by averaging effect, scale
and irreversibility, which was multiplied by likelihood. We
evaluated the significance of risk or opportunity by selecting
and qualitatively scoring the appropriate category for
consequence (reputational, resource dependency or financial
effect) and multiplying it by the likelihood of occurrence. Both
consequence and likelihood had numerical scales from one to
five. For actual negative impacts, materiality is based on the
severity of the impact. For human rights related impacts, the
severity of the impact was weighted higher than the likelihood.
Phase 4: Decide
In Phase 4, we established the threshold for material topics
using a matrix. This matrix identified IROs with high
consequences and low likelihood scores as material and IROs
with high likelihood and low consequence as immaterial, which
resulted in a more nuanced and precise analysis. The IROs
were discussed with and approved by senior management and
the Audit and Risk committee.
Additional topical IRO process disclosures
Climate change
Identifying IROs related to climate change followed the four-
phase methodology described above. DNO has assessed its
value chain to ensure all material activities related to GHG
emissions and identified IROs have been covered, including
upstream and downstream emissions. DNO has a well-
established process for identifying and assessing climate-
related risks based on a Risk Assessment Matrix (RAM), which
is included in our group-wide risk and opportunity assessment
process. Our assessments include climate-related physical risk
and transitional risk. The assessment is conducted quarterly
DNO’s supply chain, including partner operated facilities in the North Sea, is concentrated within industries
with high risk of personnel juries and exposure injuries.
Potential
negative impact
Supply chain,
further use
Short term
Contribute
directly
S2: Workers in
the value chain
DNO is dependent on sectors and industries that are traditionally male dominated.
Potential
negative impact
Supply chain,
further use
Short term
Contribute
directly
DNO uses local suppliers in Kurdistan when relevant and technically and commercially feasible, both within
its own operations and supply chain.
Actual positive
impact
Supply chain,
own operations
Short term
Caused by
The majority of staff in DNO’s own operations are local hires, supporting local economy and “social license
to operate.”
Actual positive
impact
Supply chain,
own operations
Short term
Caused by
DNO funds initiatives to benefit Kurdistan communities, such as construction of schools and roads.
Actual positive
impact
Own operations
Short term
Caused by
DNO uses land in Kurdistan that could alternatively have been used to directly benefit the local
communities.
Actual negative
impact
Own operations
Short term
Caused by
S3: Affected
communities
As a large employer in Kurdistan, DNO creates positive direct and indirect effects, positioning it to capture
further business.
Financial
opportunity
Own operations
Medium term
N/A
Non-compliance with rules and regulations regarding management of suppliers can lead to legal, financial
and reputational risks for DNO.
Financial risk
Supply chain,
own operations,
further use
Short term
N/A
Non-compliance with rules and regulations to protect whistleblowers can lead to legal, financial and
reputational risks for DNO.
Financial risk
Supply chain,
own operations,
further use
Short term
N/A
G1: Business
conduct
Non-compliance with rules and regulations regarding corruption can lead to legal, financial, and
reputational risks for DNO.
Financial risk
Supply chain,
own operations,
further use
Short term
N/A
Sustainability statement
24 DNO Annual Report 2025
based on a bottom-up risk identification, assessment and
review process. Both risks and opportunities associated with
current and future emissions and climate change are identified
and analyzed, following which relevant mitigations are put in
place. The results and insights from these assessments were
integrated into our work in developing the DMA.
In addition, DNO has conducted a climate-related sensitivity
analysis to assess the financial resilience of our portfolio under
the three climate-focused scenarios from the IEA’s WEO
report, namely the IEA’s Net Zero Emissions by 2050, Stated
Policies and Current Policies scenarios.
Pollution
Identifying IROs related to pollution followed the same four-
phase methodology as described above. To ensure that all
pollution-related IROs were identified, DNO assessed its site
locations related to business activities in its operations and in
the value chain. No specific consultations were conducted with
affected communities related to pollution IROs.
Water and marine resources
Identifying IROs related to water and marine resources
followed the same four-phase methodology as described
above. To ensure that all water and marine resources-related
IROs were identified, DNO assessed its assets and activities
related to business activities in its operations and in the value
chain. No specific consultations were conducted with affected
communities related to water and marine resources IROs.
Biodiversity and ecosystems
Our process of identifying risks and opportunities related to
biodiversity and ecosystems also followed the four-phase
methodology described above. In accordance with the
Biodiversity Management Policy, DNO identifies and assesses
potential impacts on biodiversity and ecosystems associated
with its business model. No specific consultations were
conducted with affected communities related to biodiversity
and ecosystem IROs.
To ensure that all biodiversity and ecosystem-related IROs
were identified, DNO assessed site locations across its own
operations as well as specific sites in the value chain. In our
business model, we are committed to identifying material
dependencies on biodiversity and ecosystems, engaging with
relevant stakeholders and making best efforts to minimize any
adverse effects. During the reporting period, DNO had no sites
located in or near UNESCO World Heritage Sites (WHS),
protected areas or Key Biodiversity Areas (KBA), as defined by
the International Union for Conservation of Nature. While DNO
has conducted exploration drilling in or near areas of high
biodiversity value on the NCS, all operations have been
conducted in compliance with applicable regulations and in
accordance with relevant industry best practices.
Resource use and circular economy
The identification of IROs related to resource use and circular
economy followed the four-phase methodology described
previously. No consultations, besides the general stakeholder
engagement described in the methodology, were conducted
related to resource use and circular economy.
Business conduct
The identification of IROs related to business conduct followed
the four-phase methodology described previously. In order to
identify IROs related to our operations, we assessed our main
locations, suppliers and activities where we do transactions
and have operations to identify potential heightened IROs.
Based on this information, we used nationally and
internationally recognized guidelines to identify structurally
heightened risks.
Disclosure requirements in ESRS covered by the
sustainability statement
Based on the results of the DMA, DNO assessed the
materiality of information to determine which disclosure
requirements under the ESRS were relevant to our IROs. First,
we included the mandatory disclosure requirements related to
policies, actions and targets for all material ESRS topics.
Second, we reviewed the list of disclosure requirements and
assessed which ones referred to relevant elements in our
material IROs. If we found no such information, we marked the
disclosure requirement as not relevant. The list of disclosure
requirements is included in Appendix 3 to this sustainability
statement.
2. Environment
2.1 Taxonomy disclosure
The EU Taxonomy Regulation, which came into effect in
Norway on 1 January 2023, aims to promote environmentally
sustainable economic activities within the European Economic
Area (EEA) by providing a standardized framework for
classifying activities as environmentally sustainable. The
regulation sets specific criteria and thresholds that companies
must meet to qualify their activities as environmentally
sustainable. The assessment has been prepared in
accordance with the amended EU Taxonomy framework
introduced by the Commission Delegated Regulation (EU)
2026/73.
EU Taxonomy eligibility and alignment assessment
An economic activity qualifies for taxonomy eligibility when it is
included with the activity description in the EU Taxonomy
Regulation. To determine eligible activities within DNO, we
reviewed the Group’s operations, products and sustainability
initiatives, comparing them to the descriptions of economic
activities outlined in the EU Taxonomy Regulation.
It was determined that the Group's activities, which are all
related to the core activity of extracting and selling oil and gas,
do not meet the eligibility criteria under the EU Taxonomy
Regulation.
As DNO does not have any eligible activities, it does not have
any activities that meet the alignment criteria under the EU
Taxonomy Regulation.
EU Taxonomy KPIs
The mandatory key performance indicators (KPIs) comprise
the portion of taxonomy eligible and aligned economic
activities for the total turnover (revenue), capital expenditures
(capex) and operational expenditures (opex) in accordance
with the EU Taxonomy Regulation. KPIs presented below are
derived from the figures reported in DNO’s consolidated
accounts prepared in accordance with IFRS as adopted by the
EU.
The components of the financial KPIs can be reconciled with
the consolidated accounts as follows:
• Turnover corresponds to Revenues (see Note 3 to the
consolidated accounts).
Sustainability statement
DNO Annual Report 2025 25
• Capex corresponds to additions to Property, plant and
equipment and Intangible assets (see Note 8 and Note
9). Additions to Exploration assets recognized in
accordance with IFRS 6 are excluded as these are not
mentioned in the EU Taxonomy Regulation.
• Opex is narrowly defined in the EU Taxonomy Regulation
and consists of maintenance, other direct expenditure
related to day-to-day servicing of assets and short-term
leases. These items are included in Cost of goods sold in
the consolidated income statement.
2025
Turnover
CAPEX
OPEX
USD
%
USD
%
USD
%
Environmentally sustainable
(taxonomy-aligned) activities
-
-
-
-
-
-
Taxonomy-eligible, but not
taxonomy-aligned activities
-
-
-
-
-
-
Taxonomy-non-eligible
activities
1,474.0
100.0
570.8
100.0
98.1
100.0
Total
1,474.0
570.8
98.1
2024
Turnover
CAPEX
OPEX
USD
%
USD
%
USD
%
Environmentally sustainable
(taxonomy-aligned) activities
-
-
-
-
-
-
Taxonomy-eligible, but not
taxonomy-aligned activities
-
-
-
-
-
-
Taxonomy-non-eligible
activities
666.7
100.0
226.4
100.0
58.6
100.0
Total
666.7
226.4
58.6
In 2025, there was no significant change from the previous
year as 100 percent of turnover, capex and opex in 2024 were
also reported as taxonomy non-eligible activities.
The disclosure in accordance with Annex II to the EU
Taxonomy Regulation is included in Appendix 2.
2.2 Climate change
Transition plan for climate mitigation
Oil and gas are needed in the energy mix for the foreseeable
future. As a responsible producer, DNO is dedicated to
minimizing its GHG emissions from production. We actively
explore ways to reduce the carbon footprint from our
operations, and our approach is guided by principles of
responsible and sustainable oil and gas operations, which
prioritize safety, environmental protection and health of our
workers and people in our value chain. The majority of GHG
emissions relating to our activities stem from Scope 3
emissions, more specifically related to the use of sold products
(i.e., combustion of oil and gas produced by DNO and
associated products by end users). These emissions are
considered to be incompatible with a transition to a carbon-
neutral economy and abatement of these emissions is beyond
DNO’s direct control. Given the nature of the industry, we do
not have a net zero by 2050 transition plan and currently we
have no plans for adopting such a plan. DNO’s production and
therefore emissions from the current portfolio are expected to
be near zero by 2050, as the vast majority of the Group’s
licenses under which it extracts oil and gas will have expired
by then. We continue to monitor the regulatory environment
and will adjust our approach, if needed.
Material IROs and interaction with strategy and business
model
The DMA identified our material impacts related to climate
change. The extraction, production, processing and
transportation of oil and gas results in direct GHG emissions
from our supply chain and own operations. Additionally, the
further transportation, downstream processing, refining and
end use of our products result in the release of GHGs from
downstream value chains and further use. We recognize the
importance of managing our climate-related impacts, risks and
opportunities, and our risk management system includes a
process for identifying, assessing and following up all types of
business risks, including those related to emissions. We
conduct a bottom-up risk identification, assessment and review
process on a quarterly basis. We assign all risks and
opportunities to competent owners, monitor our progress and
report substantive risks to the HSEC and Audit and Risk
committees.
Resilience analysis
DNO has carried out a resilience assessment based on the
IEA’s WEO scenarios, Net Zero Emissions by 2050, Stated
Policies and Current Policies to test the robustness of the
Group’s financial performance under alternative long term
commodity price trajectories. These scenarios represent
different outlooks for global oil and gas demand as the energy
system transitions: the Net Zero scenario reflects a rapid
decline in demand aligned with a 1.5°C pathway, the Stated
Policies scenario assumes a gradual decline driven by policies
already announced by governments, while the Current Policies
scenario assumes continued demand growth based on today’s
policy settings. In this way, the scenario analysis incorporates
climate related transition risk through demand driven price
outcomes.
Oil and gas price assumptions for 2035 and 2050 have been
sourced from the IEA in real 2024 terms. For the sensitivity
calculations, price paths were interpolated linearly between
average actual 2025 prices and the IEA 2035 assumptions,
and subsequently between 2035 and 2050. Applying these
price trajectories, DNO evaluated potential impairments and
impacts on Group profitability across the three WEO
scenarios. Under the Current Policies Scenario, net profit
increases by USD 83.0 million. The Stated Policies Scenario
reduces 2025 net profit by USD 195.3 million, while the Net
Zero by 2050 Scenario, based on IEA’s 2035 price outlook of
USD 33/bbl for oil and USD 4.2/MBtu for gas, reduces net
profit by USD 1,005.0 million. These insights are used in
DNO’s internal risk processes and additional information can
be found in Note 11 to the consolidated accounts.
Physical climate risk
DNO's operations may be exposed to physical climate risks
including extreme weather such as flooding of facilities or
physical impacts such as rising sea level and increased
temperatures leading to interruptions to production processes,
infrastructure failures, potential accidents or increased costs.
To understand and mitigate these risks, DNO has integrated
climate-related physical risk assessment in its ongoing group-
wide risk assessment process. This is reviewed at least
quarterly by the senior management and the Board of
Directors. When relevant, these risk assessments involve
engagement with local teams which provide insights based on
operational experience and monitoring of the trends in the
local environment, such as seasonal variations in river flows.
While DNO continues to refine its approach, these
assessments help inform risk management strategies,
operational preparedness and mitigation measures to ensure
business continuity and asset resilience. Time horizons
considered in these assessments are short-term (less than a
year), medium term (one to five years) and long term (five to
30 years). The risk assessment focuses on key conditions,
events and assets at risk. The scenarios applied in the
assessments vary depending on the nature of the risks
Sustainability statement
26 DNO Annual Report 2025
considered. For the purposes of this sustainability statement,
scenarios from the IEA’s World Energy Outlook have been
used as a reference framework to assess potential financial
impacts on the Group’s portfolio.
Transitional risk and opportunities
Climate change concerns may prompt environmental and
regulatory actions to limit the use of fossil fuels, thereby
affecting future supply and demand for oil and gas and the
pricing of these commodities. In parallel, investor appetite for
oil and gas investments both within equity and debt markets
may be reduced, inhibiting the Group’s ability to obtain
funding. This risk is continuously assessed by DNO. DNO has
used the IEA’s WEO scenarios to assess potential financial
impacts of climate policies on its portfolio. These scenarios
consider potential changes in oil and gas prices under
macroeconomic conditions driven by climate change and the
potential introduction of carbon pricing in Kurdistan, in addition
to potential increases in carbon taxes and fees in the North
Sea. Increasing concerns about adverse climate impact could
also reduce the attractiveness of oil and gas companies
(including DNO) as employers. The time horizon of these
transition risk assessments is medium to long term.
With relatively high CO
2
intensity in its North Sea assets and
high CO
2
pricing, DNO is exposed to increasing costs of GHG
pricing. In part driven by expected increases in such fees,
several oil and gas installations are already powered by
electricity from shore in Norway. Further electrification
initiatives are underway and DNO actively engages in
discussions that are of relevance to its licenses.
Policies related to climate change
DNO is committed to protection of the environment. This is
underpinned by our HSSE policy and the environmental
management system, which is based on the principles of ISO
14001. DNO has further implemented a corporate policy for
GHG emissions to mitigate impacts and risks related to climate
change due to its operations. This policy applies across the
Group and establishes the vision and minimum requirements
for managing such emissions. It requires all business units to
identify emissions reduction projects, including energy
efficiency, and to include GHG impacts/reductions in
investment proposals. The Managing Director is the most
senior executive responsible for implementing the policy
across the Group, and the business unit General Managers
are responsible for the implementation within their respective
business units. The policy is designed to be a high-level
guiding document and does not specifically address each IRO
in detail. The policy is available in DNO’s business
management system.
DNO is a signatory to the Aiming for Zero Methane Emissions
Initiative, an oil and gas industry pledge coordinated by the Oil
and Gas Climate Initiative (OGCI). Through this commitment,
DNO aims to achieve near zero methane emissions from its
operated oil and gas assets by 2030 and has put in place a no-
routine venting policy across its operated assets to support the
ambition. The policy also states that DNO shall work with
operators in its partner-operated assets to minimize venting
and eliminate it where practically possible. Through the OGCI
membership, DNO is reducing methane emissions, improving
data accuracy and transparency and supporting effective
policy on methane regulation.
DNO reports on its strategy and performance to mitigate GHG
emissions annually to the carbon disclosure project (CDP), a
widely used platform for reporting on climate change related
topics. In 2025, DNO received a B rating for the seventh
consecutive year for its climate change disclosures to CDP (for
the reporting year 2024).
Actions and resources in relation to climate change
policies
At the operated Tawke license, in 2020 the Group put in place
the first and still only associated gas capture and injection
facilities in Kurdistan. In 2025 these facilities contributed to
avoidance of CO
2
e emissions through capturing and injecting
associated gas that would otherwise have been flared. The
project did not incur significant capex during 2025 while opex
is considered part of the ongoing running costs. These
activities are considered emission avoidance and not reduction
under ESRS.
In 2025, the Tawke license completed a waste heat recovery
project at the central processing facility using an existing water
line and heat exchanger to transfer thermal energy from hot
produced water into the crude dehydration system. This
reduced the need for diesel-fired heating and the need for
chemical demulsifiers in the dehydration process. The initiative
was fully commissioned and operational ahead of the winter
season in 2025 and achieved a crude inlet temperature
increase of about 16 degrees Celsius (4 MW gain), saving
around 1.5 million liters of diesel annually, cutting CO₂e
emissions by roughly 4,000 tonnes in 2025. The project is also
expected to reduce demulsifier usage by up to 55,000 liters
per year, improving operational efficiency and reducing
chemical handling and disposal requirements. Implementation
required minor piping modifications and insulation of an
existing pipeline to retain thermal efficiency. No new process
equipment outside the reused infrastructure was required,
resulting in low capital cost relative to the achieved
environmental benefit.
DNO has also matured further emission-reduction measures at
Tawke in 2025, focusing on replacing diesel with produced gas
and expanding centralized power generation. Upcoming
actions include installing dual-fuel generators and switching
refinery heaters to produced gas. Continued optimization of
gas reinjection is expected, along with consolidation of well
site power supply for improved efficiency and reduced
maintenance. All these projects require further maturation,
technically and operationally, and management approval prior
to implementation and allocation of financial resources.
The Tawke license has an active Leak Detection and Repair
(LDAR) program aiming to reduce fugitive methane emissions
from its operations. This project did not incur significant capex
or opex in 2025.
In the North Sea, as a non-operating partner in most of our
producing fields, DNO takes part in license and industry
initiatives to lower emissions. The most effective measure for
reducing emissions from operations on the NCS is
electrification of the processing hubs using low carbon
electricity from shore, which is supported by KonKraft’s status
report for 2025. With the acquisition of Sval Energi in 2025, the
DNO portfolio now includes several fields powered either fully
or partly with power from shore contributing to a significant
reduction of carbon intensity of the NCS portfolio. In 2025
DNO spent approximately USD 5.5 million on the power from
shore project in the Fenja license planned to be operational in
2027. The Group also focuses most of its exploration activities
within tieback distance of low emission hubs, which may help
to reduce the environmental impact of new discoveries in the
future.
Sustainability statement
DNO Annual Report 2025 27
In addition to electrification by power from shore, a range of
initiatives aimed at reducing energy consumption and
emissions have been rolled out across DNO’s partner-
operated NCS assets in 2025, with further plans currently
underway. These efforts typically focus on operational
efficiency, design optimization of process equipment and the
ongoing reduction of flaring. For the Ivar Aasen field,
preparations have been made to enable drilling with power
from shore for the 2026 rig campaign. At the Ekofisk field, a
significant electrification project was discontinued in 2025;
however, the operator has introduced a portfolio of alternative
projects designed to reduce emissions which are scheduled for
implementation in the short to medium term. Examples include
operational optimizations related to power generation,
improved utilization of water injection pumps and re-bundling
of power turbines and compressors to improve energy
efficiency. On the Brage platform, a project to recover gas from
degassing drums has progressed over the year. This initiative
is expected to facilitate future reductions in flaring and gas
venting.
Some of DNO’s older fields on the NCS have a relatively high
CO₂ intensity per barrel produced. As certain of these fields
are scheduled to cease production before 2030, such as Ula
and its tie-ins, the overall carbon intensity of the portfolio is
expected to improve. The operated Vale field and the partner-
operated Heimdal field are already in the decommissioning
phase, with a focus on the re-use and recycling of materials.
In 2025 DNO continued its membership and support of the
LowEmission research center in Norway. The center is
focused on research and development of technologies and
solutions aimed at reducing GHG emissions from the
petroleum activities on the NCS. It is coordinated by SINTEF
Energy Research and features a consortium of leading
Norwegian and international industry participants, as well as
internationally recognized universities and research institutes.
Metrics and targets
DNO has set an ambition for the Group’s GHG emission
intensity (i.e., Scope 1 and Scope 2 for operated fields) to be
below the average of the global upstream industry. In 2025,
the DNO reported an emission intensity of 13.7 kgCO₂e/boe.
This compares favorably with the target established by OGCI,
in which 12 of the world’s largest oil and gas companies
committed to reducing the average carbon intensity of their
upstream operations to 17 kgCO₂e/boe by 2025, from a
collective baseline of 23 kgCO₂e/boe in 2017.-DNO does not
have a target for reducing its absolute GHG emissions
(majority of which is CO
2
).
The near-zero methane emissions ambition applies to all of
DNO’s activities. The policy of no-routine venting is directly
applicable to DNO’s activities in Kurdistan and the operated
drilling activities in the North Sea. DNO’s total methane
emissions (Scope 1) in 2025 from its operated assets were
23,945 tCO
2
e (equity share). For DNO’s operated and partner-
operated assets in Norway flaring is only permitted when
required for safety reasons and is strictly regulated through the
Petroleum Regulation. Cold venting of methane and NMVOC
is regulated through the Pollution Control Act, and emission
limits are set based on Best Available Techniques (BAT) and
include diffuse emissions. More than 90 percent of DNO’s
Scope 1 CO
2
e emissions on the NCS is covered by the CO
2
tax regulation as well as the EU Emission Trading Scheme
(ETS) quota system.
For partner-operated assets in the UK new regulatory
requirements have been introduced over the last few years,
including a principle to work towards zero routine flaring and
venting by 2030.
DNO GHG reduction targets do not meet the requirements of
ESRS for science-based targets and are not compatible with
limiting global warming to 1.5 degrees Celsius. DNO has not
adapted targets due to the nature of the industry and that most
emissions are from end-use of sold products beyond our direct
control.
Energy consumption
Energy consumption and mix
Unit
2025
2024
Fuel consumption from coal and coal products
MWh
-
-
Fuel consumption from crude oil and petroleum
products
MWh
361,897
294,505
Fuel consumption from natural gas*
MWh
1,169,638
296,749
Fuel consumption from other fossil sources
MWh
-
-
Consumption of purchased or acquired electricity, heat,
steam, and cooling from fossil sources
MWh
37,495
584
Total fossil energy consumption
MWh
1,569,030
591,838
Share of fossil sources in total energy consumption
percent
98.6
99.8
Consumption from nuclear sources (NVE factor el**)
MWh
9,099
-
Share of nuclear sources in total energy consumption
percent
0.6
-
Fuel consumption for renewable sources, including
biomass (also comprising renewable hydrogen, etc.)
MWh
-
-
Consumption of purchased or acquired electricity, heat,
steam, and cooling from renewable sources
MWh
13,092
1,064
The consumption of self-generated non-fuel renewable
energy
MWh
21
17
Total renewable energy consumption***
MWh
13,112
1,081
Share of renewable sources in total energy
consumption
percent
0.8
0.2
Total energy consumption
MWh
1,591,242
592,919
*Category includes use of associated gas.
**NVE factor electricity, see NVE website.
***Numbers reflect market-based factors for purchased electricity in line with CSRD
requirements, i.e., power from shore used in Norway is calculated with the European
energy mix (73% fossil energy), while the physically delivered electricity in Norway has
less than 5% fossil share. See NVE website.
Energy consumption is reported based on financial control (equity share).
All of the total energy consumption is from activities in high climate impact sectors.
Reconciliation to net revenue in financial
statements
Unit
2025
2024
Net revenue used to calculate energy intensity
USD million
1,474.0
666.8
Net revenue (other)
USD million
-
-
Total net revenue (in Financial Statements)
USD million
1,474.0
666.8
Energy intensity
Unit
2025
2024
Energy intensity
MWh/USD million
1,079.5
889.2
Energy intensity is reported based on financial control (equity share).
All DNO activities and emissions are in the oil and gas sector,
which is defined as a high climate impact sector. During the
year, DNO produced a minor amount of renewable energy (21
MWh from solar cells) and no nonrenewable energy. Reporting
policies and methodology are disclosed in section 2.6.
Sustainability statement
28 DNO Annual Report 2025
Scopes 1, 2, 3 and total GHG emissions
Financial control (equity share)
Partners' share of DNO-operated assets
Unit
2025***
2024**
2025
2024**
Scope 1 GHG emissions
Scope 1 GHG emissions
tCO2e
537,130
358,860
85,506
90,319
Percentage of Scope 1 GHG emissions from regulated emission trading schemes
percent
50%
23%
0%
0%
Scope 2 GHG emissions
Location-based Scope 2 GHG emissions
tCO2e
1,052
374
-
-
Market-based Scope 2 GHG emissions
tCO2e
27,924
951
-
-
Scope 3 GHG emissions by category
Total indirect (Scope 3) GHG emissions
tCO2e
17,254,110
12,770,798
35,308
26,791
Purchased goods and services
1
tCO2e
92,033
82,476
19,872
16,907
Capital goods
2
tCO2e
36,900
11,872
7,701
3,790
Fuel and energy-related activities (not included in Scope1 or Scope 2)
3
tCO2e
22,353
6,227
119
3,816
Upstream transportation and distribution
4
tCO2e
22,589
9,276
7,117
2,096
Waste generated in operations
5
tCO2e
1,412
584
498
182
Business travel
6
tCO2e
1,816
1,701
-
-
Employee commuting
7
tCO2e
836
781
-
-
Upstream leased assets*
8
tCO2e
-
-
-
-
Downstream transportation
9
tCO2e
172,540
175,749
-
-
Processing of sold products
10
tCO2e
1,323,662
1,090,590
-
-
Use of sold products
11
tCO2e
15,568,832
11,383,373
-
-
End-of-life treatment of sold products
12
tCO2e
100
83
-
-
Downstream leased assets*
13
tCO2e
-
-
-
-
Franchises*
14
tCO2e
-
-
-
-
Investments
15
tCO2e
11,036
8,086
-
-
Total GHG emissions
Total GHG emissions (location-based)
tCO2e
17,792,293
13,130,031
120,813
117,110
Total GHG emissions (market-based)
tCO2e
17,819,164
13,130,608
120,813
117,110
*Scope 3 GHG emissions in these categories are assessed not to be applicable in 2024 or 2025.
**2024 is the base year.
*** In 2025 DNO acquired Sval Energi and its NCS portfolio. The emissions relating to Sval Energi assets have been included from 1 June 2025 in line with the acquisition date for accounting
purposes.
DNO does not have any specific milestones or targets related
to its absolute GHG emissions, therefore they are excluded
from the table. The base year is 2024, the first year of
reporting under ESRS. DNO did not have any contractual
instruments applicable to Scope 2 GHG emissions in 2025
other than certificates of origin for the Sval Energi offices in
Stavanger. The acquisition of Sval Energi affects the
comparability of GHG emissions, as emissions from the Sval
Energi assets are included in the reported figures from 1 June
2025.
DNO reports its equity share of Scopes 1, 2 and 3 GHG
emissions across both operated and partner-operated oil and
gas assets. Additionally, for assets where DNO is the operator,
partners’ share from Scopes 1, 2 and 3 GHG emissions are
disclosed in the table above. All partner-operated assets are in
the North Sea, and emission data for these assets are
compiled based on figures provided by the respective
operators. In cases where the operator does not provide all the
required data, we have applied best available approximation
techniques to estimate the emissions. The calculation of
Scope 3 emissions is primarily based on estimates as
described in section 2.6.
GHG intensity per net revenue
Unit
2025
2024
Total GHG intensity (location-based)
tCO2e/USD thousand
12.1
19.7
Total GHG intensity (market-based)
tCO2e/USD thousand
12.1
19.7
Total GHG emissions include reported Scopes 1, 2 and 3 based on financial control
(equity share).
Reconciliation to net revenue in financial
statements
Unit
2025
2024
Net revenue used to calculate GHG intensity
USD thousand
1,473,983
666,764
Net revenue (other)
USD thousand
-
-
Total net revenue (in financial statements)
USD thousand
1,473,983
666,764
Reporting policies and methodology are disclosed in section
2.6.
Internal carbon pricing
Assets in Norway and the UK are required to buy CO
2
quotas
under the EU ETS and the UK ETS, respectively. For NCS
assets there is also an additional CO
2
tax on emissions. DNO
takes into account current and expected future carbon pricing
when assessing all projects and when planning for current and
future field developments and operations. The forward carbon
price curve is evaluated annually.
GHG removals and GHG mitigation projects financed
through carbon credits
DNO did not have any GHG removal or mitigation projects
financed through carbon credits in 2025.
2.3 Pollution
DNO has identified actual and potential impacts and financial
risk relating to environmental pollutants, including both
emissions to air and discharges to sea. The emissions to air
occur both in Kurdistan and the North Sea and include
pollutants such as sulfur oxides (SO
x
), nitrogen oxides (NO
x
),
non-methane volatile organic compounds (NMVOC), volatile
organic compounds (VOC) and particulate matter (PM) from
activities conducted across the Group’s value chain, including
its own activities. The discharges to sea include planned
discharge of produced water from offshore installations in the
North Sea where DNO is partner, as well as the risk of acute
incidents causing unplanned discharges to sea. From a
financial risk perspective, a major accidental discharge can
lead to fines, liabilities, reputational damage and in the worst
case loss of license to operate.
Pollutants can impact air and water quality and have potential
effects on human health and the environment. The final use of
petroleum products can also contribute to air pollution.
Immediate potential impacts may include air and water quality
Sustainability statement
DNO Annual Report 2025 29
degradation and adverse health effects, while long-term
impacts can involve broader environmental and biodiversity
consequences. The current and anticipated effects of these
material impacts are therefore important for DNO’s business
model, value chain, strategy and decision-making.
Policies related to pollution
Protection of the external environment is considered integral to
our license to operate, and we continuously work to reduce our
environmental impact. This effort is underpinned by our HSSE
policy and the environmental management system, which is
based on the principles of ISO 14001. Environmental
management is incorporated into the value chain of our assets.
DNO’s Corporate HSSE policy affirms our commitment to
preventing pollution and minimizing the impact of our
operations on both the environment and biodiversity. The
policy applies across the Group and establishes the vision and
minimum requirements for managing and reducing negative
impacts, but does not address each IRO in detail. While DNO
does not maintain specific group-level policies focused solely
on mitigating air, water and soil pollution, tailored procedures
at the business unit level are in place to minimize
environmental pollutants and remediate any incidents of
pollution. DNO recognizes that, despite best efforts,
emergencies or crises may still occur. To address this, the
Group has established a Crisis Management and Emergency
Response Policy, as well as a Corporate Major Accident
Prevention Policy. These policies outline measures to prevent
incidents and define the actions to take if they occur, aiming to
minimize impacts on people and the environment. In addition,
local emergency preparedness and response plans are
implemented for relevant activities across all regions.
Actions and resources related to pollution
DNO is the leading company in reduction of flaring in Kurdistan
through its associated gas capture and injection project (as
described in section 2.2 Climate Change). The project also
involved the installation of three gas engines that today power
large parts of the Peshkabir field, greatly reducing the reliance
on diesel generators, which in addition to CO
2
emissions
cause local air pollution (mainly SO
x
and NO
x
) and noise. The
project did not incur significant capex during 2025 while opex
is considered part of the ongoing running costs. In Norway,
routine flaring has been prohibited for over 50 years. In the
UK, recent regulation strongly encourages the operators to
avoid unnecessary flaring.
All petroleum-related operations by DNO in the North Sea are
conducted in accordance with regulatory approvals obtained
through environmental permits and associated consultation
processes. Environmental impact assessments are
systematically undertaken as part of the regulatory processes.
Environmental stakeholders, local communities and other
interested parties have the opportunity to raise environmental
concerns and provide input to authorities regarding planned
activities during public hearings. The management of
discharges to sea, emissions to air and the use of chemicals is
governed by permits issued for each operational asset,
ensuring compliance with the strict environmental regulations
and standards applicable in the North Sea region. DNO also
participates actively in various Offshore Norge working groups,
a Norwegian association for offshore industries including oil
and gas, fostering industry collaboration to ensure joint
adherence to national requirements and stakeholder
expectations.
Additionally, DNO adopts the principle of Best Available
Techniques (BAT). An example of this is the implementation of
rigorous chemical management procedures, fully aligned with
Norwegian regulatory standards. Before each operation, an
assessment is conducted to identify and, where feasible,
substitute environmentally harmful chemicals. Recognizing this
as an ongoing effort, DNO remains committed to collaborating
with chemical suppliers to promote the development of more
environmentally friendly alternatives.
Some of the produced water containing pollutants is reinjected
back into subsurface reservoirs, however many of the
producing fields in DNO's North Sea portfolio discharge
produced water to sea. Such discharges are regulated by the
respective Norwegian and UK environment agencies and the
oil content in produced water discharged to sea shall be as low
as possible and not exceed 30 milligrams oil per liter of water
on average per month. The treatment is carried out using BAT
to ensure the lowest possible concentration of dispersed oil
and associated organic compounds. Oil in water concentration,
depending on the field, is either measured daily or monitored
through continuous online measurements. Analysis of other
pollutants in the discharged produced water stream is
conducted twice a year.
Metrics and targets
DNO is committed to minimizing the environmental impacts of
its operations, including pollution and is considering ESRS-
aligned targets suited to the Group’s specific operations and
asset portfolio.
Pollution to air
To manage our environmental impact, DNO collects and
analyses data on pollution to air. The increase in pollution
compared with last year is mainly due to the acquisition of Sval
Energi and the resulting higher production in the North Sea.
2025 Pollutant to air (tonnes)
Financial
control
(equity share)
Operational
control
(100 percent)
Nitrogen oxides (NOx)
2,600
2,743
Sulfur oxides (SOx)
1,310
1,735
Non-methane volatile organic compounds (NMVOC)
792
653
Particulate matter (PM)
69
89
2024 Pollutant to air (tonnes)
Financial
control
(equity share)
Operational
control
(100 percent)
Nitrogen oxides (NOx)
2,343
2,484
Sulfur oxides (SOx)
1,088
1,469
Non-methane volatile organic compounds (NMVOC)
569
605
Particulate matter (PM)
89
93
Sustainability statement
30 DNO Annual Report 2025
Pollution to sea
The produced water stream contains pollutants such as
metals, hydrocarbons, phenols and polycyclic aromatic
hydrocarbons as listed in Annex II of Regulation (EC) No
166/2006 European Pollutant Release and Transfer Register.
2025 Pollutant to sea (kg/year)
Type
Thres-
hold
value
Financial
control
(equity
share)*
Operational
control
(100 percent)*
Arsenic and derivatives as in
discharged water
Metal
5
9
-
Cadmium and derivates as Cd, in
discharged water
Metal
5
129
-
Lead and derivatives as Pb, in
discharged water
Metal
20
24
-
Zinc and derivatives as Zn, in
discharged water
Metal
100
1,587
1
Benzene, in discharged water
BTEX
200
38,246
7,336
Toluene, in discharged water
BTEX
200
28,265
6,453
Ethylbenzene, in discharged water
BTEX
200
1,045
256
Xylene (BTEX), in discharged water
BTEX
200
9,090
2,013
Polycyclic Armomatic Hydrocarbons
(PAH) as available, in discharged
water
PAH
5
4,124
305
Naphtalene, in discharged water
PAH
10
1,759
187
Anthracene, in discharge water
PAH
1
1
-
Fluoranthene, in discharged water
PAH
1
1
-
Benzo (g,h,i) perylene, in discharged
water
PAH
1
1
-
Phenols (incl. alkylphenols C1-C9), in
discharged water
Phenol
20
25,332
2,456
*Includes operated field pro-rated share of hub discharges.
Reporting policies and methodology are disclosed in section
2.6.
2.4 Biodiversity and ecosystems
Biodiversity is a material topic for DNO due to the potential for
negative impacts on biodiversity from offshore activities and
accidental discharges to sea. This is particularly important with
respect to the Group’s activities in or near areas of high
biodiversity value in connection with exploration drilling and the
development of oil and gas infrastructure in the North Sea.
These potential impacts can also pose financial risks relating
to permits, reputation and direct financial losses.
The management of impacts relating to GHG emissions as
impact driver for loss of biodiversity and ecosystems is
covered in section 2.2 Climate Change.
Policies and procedures
Both the HSSE and Biodiversity Management Policies clearly
state DNO’s commitment to prevent pollution and minimize the
impact of our operations on the environment and biodiversity.
This commitment is further outlined in work processes and
procedures to support robust environmental management. The
policies apply across the Group and establish the vision and
minimum requirements for managing biodiversity in connection
with DNO’s operated and partner-operated activities. The
Managing Director is accountable to the Board of Directors for
ensuring the implementation of this policy throughout the
Group. Each business unit’s General Manager is responsible
for executing the policy within their unit and reporting to the
Managing Director on implementation, potential impacts and
the measures taken to mitigate any adverse effects of
operations on biodiversity.
The governing documents outline how operational impacts
must be thoroughly assessed, monitored, reported and
minimized to the extent practically possible. All activities with
potential biodiversity implications are planned with risk
reduction in mind, and sensitive habitats are mapped. This
includes the potential for physical impacts from offshore
activities, planned and controlled emissions and risk reducing
measures for unplanned events. All activities are required to
comply with applicable regulations, including those governing
pollution control, public consultation and monitoring surveys
and must adhere to relevant industry best practices.
DNO prohibits operations in UNESCO World Heritage Sites
(WHS) and aims to avoid new developments in, or in proximity
to, protected areas. If operations take place in areas of high
biodiversity value, DNO will take additional care to assess
potential impacts, implement measures to minimize harm and
report any adverse effects transparently. These areas
comprise Key Biodiversity Areas (KBA, IUCN Word Database
on Protected Areas) and Particularly Valuable and Sensitive
Areas (SVOs) on the NCS.
Actions and resources related to biodiversity and
ecosystems
None of our operations in 2025 were in proximity of WHS or
protected areas. However, DNO drilled one exploration well,
Page, within an SVO. The well is located inside the SVO ‘Inner
Shoal,’ which is an area designated as SVO due to its vital
habitats and breeding grounds for sand eels.
In order to minimize the risk of negative impacts,
environmental risk and oil spill contingency analyses were
performed as basis for the emergency response plan, focusing
on vulnerable resources and prioritizing sensitive areas in
accordance with standard procedures.
The drilling campaign was scheduled to avoid disturbing sand
eels during their spawning season and early life stages. To
protect bottom habitats, all drill cuttings were collected for
onshore treatment, preventing contamination of the seabed.
With respect to other biodiversity and ecosystem-related
actions in 2025, DNO also conducted a habitat survey during
the Kjøttkake exploration drilling campaign. The survey
identified the presence of Isidella lofotensis (bamboo coral), a
species classified as near threatened on the Norwegian Red
List for Species. By performing visual inspections before and
after drilling and submitting all findings to the Norwegian
Environmental Agency’s Visual Database, DNO has
contributed to advancing knowledge of this species.
Metrics and Targets
DNO monitors the effectiveness of its policies and actions
related to biodiversity impacts around its North Sea
installations through regular environmental monitoring as part
of a joint industry program. Quantitative indicators such as oil-
contaminated area and changes in benthos fauna over time
are compared to baseline data. This enables monitoring of
biodiversity recovery trends in affected habitats and the state
of species and ecosystems. DNO has not established
measurable biodiversity-related targets.
Oil contaminated areas and biodiversity impacts
DNO’s biodiversity footprint is largely associated with the
historical oil-contaminated drill cutting piles that accumulated
in the 1980s during the drilling of the first wells on the partner-
operated Ula, Ekofisk and Brage fields. While much of the oil
has naturally degraded over the years, some remains present
in the sediments surrounding the installations. Regular
environmental monitoring has documented that the total oil-
contaminated areas have significantly decreased over the
years. The surveys have not indicated significant negative
Sustainability statement
DNO Annual Report 2025 31
impacts on the benthic fauna. The state of species and
condition of ecosystems at most field-specific stations
correspond to the baseline levels of the areas where the sites
are located.
Sites in or near biodiversity-sensitive areas
Operated
well
PL
Marine
area
DNO
equity
share
SVO
Footprint
(km2)
Biodiversity values
2/6-8 S
Page
1086
North Sea
50%
Sandeel
habitats
0.01
Important habitats
and spawning
grounds for
sandeel (footprint
area equivalent to the
rig area).
35/10-15 S
Kjøttkake
1182S
Norwegian
Sea
40%
-
0.02
In an area with
scattered densities of
bamboo corals
(footprint area
equivalent to defined
area around anchor
lines).
Berling
644
Norwegian
Sea
30%
-
228.0
In an area with high
densities of cold
water corals (footprint
area equivalent to
area covered by
pipeline).
2.5 Resource use and circular economy
The extraction, processing and transport of oil and gas require
substantial resource inputs, making DNO’s business model
inherently resource intensive. This applies not only to the
hydrocarbons produced, but also to the raw materials needed
to construct and maintain the supporting infrastructure.
DNO has identified three material impacts and one financial
risk related to resource use and circular economy. The impacts
and risk related to resource inflows are primarily related to the
use of raw materials both in the supply chain and within the
Group’s own operations, including scarce metals and minerals,
equipment for extraction and the extraction process itself. The
positive impact is related to the re-use and recycling of major
amounts of steel and materials in relation to decommissioning
of offshore facilities for some of DNO’s fields in the North Sea.
In relation to waste, DNO has identified potential for negative
impacts from hazardous and non-hazardous waste generated
through drilling, production and within the supply chain, as well
as from decommissioning activities. The following section
describes how DNO is working to prevent, minimize and
mitigate these impacts and risks.
Policies related to resource use and circular economy
As part of DNO’s efforts to address the material impacts
related to resource use and the circular economy, the Group
maintains commitments to optimize resource use wherever it
operates. The Group’s HSSE policy emphasizes minimizing
undesirable environmental impacts from its activities. At
present, DNO does not have a dedicated group policy
specifically addressing resource use or the circular economy,
nor policies focused on reducing virgin resource consumption,
promoting sustainable sourcing, or increasing the use of
renewable resources. We recognize the importance of these
areas and are exploring ways to integrate them into our
business strategy. For the Kurdistan business unit, a Waste
Management Procedure is in place, which defines how DNO
shall manage and control waste streams from generation point
to its final disposal, with the objective of preventing and
mitigating pollution to as low as reasonably practicable.
DNO strives to follow the waste hierarchy, which prioritizes
waste management strategies based on their environmental
benefits. The waste hierarchy places the highest priority on
preventing waste generation, which means that our first goal is
to prevent the creation of waste through efficient processes
and sustainable practices. Where waste cannot be avoided,
priority is given to preparing materials for re-use, followed by
recycling, recovery and, as a last resort, disposal such as
landfill. Furthermore, DNO manages waste in accordance with
local industry regulations and relevant international standards,
including the International Maritime Organization’s waste
management requirements outlined in MARPOL 73/78
Annexes.
Actions and resources related to resource use and
circular economy
DNO is involved in several decommissioning projects in the
North Sea, including the ongoing projects at Vale (operated)
and Heimdal (partner-operated), as well as planning for the
future removal of the Ula platform and associated tie-in field
facilities (partner-operated). In 2025 DNO spent USD 14
million on the operated Vale decommissioning offshore project
installing rig anchors for the 2026 plugging and abandonment
campaign. This and the other projects mentioned here aim for
a high degree of recycling (> 95 percent), capable of being
achievable in part due to the large amounts of steel that will be
recycled. The Marulk field is planning to re-use a Christmas
tree and subsea flow module from previously producing fields,
thereby extending the useful life of existing equipment and
reducing material consumption.
In the UK, DNO is overseeing the dismantling and recycling
activities onshore for the gas platforms from the Schooner and
Ketch fields, following the completion of all offshore
decommissioning work in previous years. In 2025 there has
been limited activity in this project.
In Kurdistan, DNO has a long tradition of reusing equipment,
going back to the first processing facility at the Tawke field
which was bought second-hand nearly twenty years ago. The
emphasis on reuse has increased with the cost saving
initiatives in recent years, which continued in 2025. Examples
of re-use in 2025 are mentioned in section 2.2 Climate Change
in relation to the waste heat recovery project at the Tawke
central processing facility.
Metrics and targets
DNO is working to strengthen its understanding and
management of resource inflows and outflows across its
operations. While we have not yet adopted specific targets or
related metrics in these areas, we are exploring ways to
establish measurable goals to enhance our resource
management practices.
DNO is dependent on inputs such as raw material (mainly
steel and cement) for construction of wells and wellheads,
pipelines, separation units, storage tanks and processing
plants. Our operations also require the use of energy and
water and the use of physical space for operations both
onshore and offshore.
For resource inflow, DNO’s total steel and cement
consumption across its portfolio (financial control) in 2025,
which are deemed to be the most important of the raw
materials used in DNO’s assets, is estimated at 31,904 tonnes.
Steel and cement are used primarily in the construction of
facilities and infrastructure in our operations, such as oil and
gas processing units as well as drilling activities (including
wellhead equipment such as wellbore casing and tubing, in
addition to the construction of well sites). Other key inflows
Sustainability statement
32 DNO Annual Report 2025
include consumables such as chemicals needed for production
and processing of oil, gas and associated water.
The majority of waste generated in DNO operations over the
last couple of years relates to decommissioning activities and
drilling operations. Drill cuttings represent the majority of the
hazardous waste generated. In Kurdistan, these are stored
onsite for periodic remediation, while in the North Sea they are
sent to shore for treatment and disposal. DNO seeks not only
to comply with applicable regulatory requirements but also to
improve resource utilization. This includes ongoing efforts to
mitigate negative impacts, enhance resource efficiency and
explore innovative solutions that support a circular economy.
Resource inflow*
Unit
2025
2024
Material use**
tonnes
31,904
44,031
Percentage of biological materials
percentage
-
-
Secondary reused or recycled components
tonnes
39
26
Percentage of secondary or recycled components
percentage
0.1%
0.1%
*Represents estimated amount of cement and steel.
Resource outflow*
Unit
2025
2024
Waste generated
Hazardous waste
tonnes
9,405
8,372
Non-Hazardous waste
tonnes
1,304
791
Total waste generated
tonnes
10,709
9,163
Waste recovered (recycled/reused)
Hazardous waste
tonnes
355
2,628
Non-Hazardous waste
tonnes
293
116
Total waste recovered
tonnes
648
2,744
Waste non-recovered*
Hazardous waste
tonnes
9,050
5,745
Non-Hazardous waste
tonnes
1,011
675
Total waste non-recovered
tonnes
10,061
6,419
Percentage of non-recycled waste
percentage
94%
70%
*Resource inflow and resource outflow is reported based on financial control (equity
share).
**This entry aggregates all disposal streams, including incineration and landfill.
Reporting policies and methodology are disclosed in section
2.6.
2.6 Reporting policies and methodology
Reported metric*
Policy, methodology and assumptions
Energy
consumption
Fuel
consumption
Energy consumption is calculated based on volume of
fuels consumed (metered) and assumed heating values
for each fuel or values reported directly by the operators.
Energy consumption from self-generated renewable
energy represents estimated onsite electricity generation
from solar PV panels in the Tawke license. Purchased
electricity from renewable sources is estimated based on
national electricity supply averages (location- and market-
based methodology).
GHG
emissions
Scope 1
DNO quantifies Scope 1 emissions from its operated
assets based on requirements and guidelines of the
widely used International Petroleum Industry
Environmental Conservation Association’s (IPIECA)
“Petroleum industry guidelines for reporting greenhouse
gas emissions” and Alberta Government’s “greenhouse
gas quantification methodologies” and are mainly based
on onsite measurements. North Sea data for Scope 1 is
based on measured fuel and flare, and field and facility
specific factors from samples. Scope 1 emissions from
partner-operated assets are received from operators.
When data has not been available DNO has made
estimates using best available data.
GHG
emissions
Scope 2
Scope 2 emissions are quantified based on actual
electricity purchased for DNO’s operations and offices
and GHG intensity of the electricity grid in the
corresponding countries as disclosed by national
authorities (e.g., NVE in Norway), electricity providers or
other publicly available data (e.g., Carbondi.com). When
actual quantities are not available, estimates are used.
GHG
emissions
Scope 3
The calculation of scope 3 emissions is primarily based
on estimates. Calculations are based on the UK
Government GHG Conversion Factors for Company
Reporting 2024 and 2025, IPIECA Estimating Petroleum
Industry Value Chain Greenhouse Gas Emissions (2016),
Stanford University’s OPGEE tool, University of Calgary’s
PRELIM tool and American Petroleum Institute’s (API)
Compendium of Greenhouse Gas Emissions
Methodologies for the Natural Gas and Oil Industry.
Downstream Scope 3 emissions estimates are inherently
less reliable due to DNO’s limited control and visibility
over the downstream value chain. For DNO North Sea the
Scope 3 data is primarily from partners, and where data
were missing estimates were made using e.g., activity
data for drilling activities.
Pollution
Pollution to
Air
Air pollution is quantified by using emission factors
published in the UK Government’s National Atmospheric
Emissions Inventory (NAEI) and, when relevant, gas
composition analyses and actual amount of fuels used.
Operators’ data are used when available. DNO numbers
include pro-rated share of processing hub discharges.
Pollution
Pollution to
Sea
Discharge of produced water to sea from offshore
processing hubs are metered and samples are taken to
determine oil in water content. DNO numbers include pro-
rated share of processing hub discharges.
Resource
inflow
Total steel
and cement
consumption
The spend-based method is used to estimate amounts of
steel and cement for activities where more accurate data
is missing. Inputs are annual capital cost and operating
cost.
Resource
outflow
Waste
generated
Mass of waste generated is calculated based on actual
measurements and estimates of different waste streams
(hazardous and non-hazardous waste).
Resource
outflow
Waste
recovered
Mass of waste recovered (reused and recycled) by DNO
or by third-parties (when reliable data is available) is
reported based on actual measurements and estimates of
different waste streams (Hazardous and non-hazardous
waste).
*The metrics in this chapter have been validated by our assurance provider.
Sustainability statement
DNO Annual Report 2025 33
3. Social
3.1 Own workforce
People are DNO’s most important resource. We celebrate
diversity in the DNO family in nationality, gender, race, culture,
religion and age, and our 1,159 employees represent 49
different nationalities (1,070 and 39 in 2024). The Group has
offices in Dubai, Erbil, Oslo and Stavanger, as well as onshore
and offshore operations in the Middle East, North Sea and
West Africa. For reporting purposes, workforce includes all
DNO employees across all offices and operated fields,
including temporary staff. Some of the health and safety
policies and procedures also cover contractors that work at
DNO sites. Contractor employees at operated and partner-
operated sites are classed as workers in the value chain rather
than part of own workforce; nevertheless, certain health and
safety disclosures related to this category of workers are
included within this section.
Our DMA has identified three material impacts related to our
workforce in the short term, all of which are potentially
negative impacts. The impacts are considered to be inherent
and driven by the nature of our industry and the regions of
operation. All our workforce is potentially subject to these
impacts and are included in our disclosure; however, some of
the impacts are more relevant for certain groups of employees.
Employees at our operated fields face a higher risk of injuries,
females in the industry may experience gender disparity and
the industry's 24/7 operations can contribute to work-induced
stress. While the risk of potential negative impact from injuries
would typically involve individual incidents, potential impacts
related to gender disparity and work-induced stress are
considered to be more widespread and could affect either
individuals or groups of employees.
On the positive side, DNO enhances employee well-being
through a strong commitment to health and safety, diverse
career opportunities and competitive compensation. In
Kurdistan, DNO takes an active role as a responsible
employer, contributing to significant job opportunities and
career advancements for local hires. The Group also brings
best-in-class health and safety standards to its operations
everywhere and encourages everyone to take responsibility.
Through the DMA, the Group assessed the impacts and risks
related to the workforce based on in-depth knowledge of the
industry, the specifics of the Group’s operations and
engagement with stakeholders. We identified the employees at
operated fields as the category with an elevated risk exposure.
DNO operations are not considered to be at risk of significant
incidents of child labor or forced labor, due to the enforcement
of strict standards and procedures across all locations. The
Group has not identified any material risks or opportunities that
arise from dependencies on people in the workforce.
As we have not developed a net-zero transition plan, this does
not currently affect our workforce.
The following section outlines how we engage with employees
and address these impacts through policies, targets and
actions.
Policies related to own workforce
To manage the material IROs related to DNO’s own workforce,
we have established multiple policies. These include the Code
of Conduct, HSSE policy, Diversity and Inclusion policy and
Major Accident Prevention policy. Each of the relevant policies
are described in more detail below. The development of our
policies has been guided by the perspectives of key
stakeholders, ensuring their interests are integrated into our
governance framework, which is grounded in DNO’s core
values: First, Fair and Firm. Additionally, two of the six core
principles in our Code of Conduct explicitly emphasize treating
everyone with respect and maintaining a safe work
environment. Our human rights commitments are based on the
UN Global Compact Principles as set out in our Code of
Conduct. Additionally, DNO conducts an annual assessment of
its own operations and its value chain, based on the principles
of the OECD Guidelines for Business Enterprises. This
assessment aims to identify and address significant risks and
adverse impacts on human rights and decent working
conditions.
The Code of Conduct is described in section 4.1 Business
conduct and covers the fundamental principles for how we
strive to keep our workforce safe from harm, protect our
assets, contribute to the communities in which we operate and
minimize our environmental footprint. We expect everyone
working for or with DNO, or otherwise acting on behalf of the
Group, to be fully familiar with and adhere to these principles.
We facilitate this by including mandatory Code of Conduct
training in our onboarding program for all new employees. The
Code of Conduct sets out standards and basic rules for
ensuring a safe working environment and defines DNO’s
commitment to respecting human rights. It also explicitly states
that DNO does not tolerate any form of harassment. In addition
to this general proscription, the Code of Conduct specifically
rejects discrimination based on race, color, age, gender or
sexual orientation.
Our HSSE policy also guides our treatment of coworkers. The
key elements of our HSSE policy with regard to our workforce
include:
• A work environment characterized by respect, trust,
cooperation and a shared understanding of DNO's values
where concerns can be freely raised;
• To ensure that HSSE is integral to the roles and
responsibilities of everyone who works for and with DNO;
• To ensure that HSSE risks, including workplace
accidents, are identified, understood, assessed and
controlled; and
• Engagement with suppliers and contractors to ensure
alignment with our values and goals.
The HSSE policy states that we strive to create a rewarding
working environment for our employees, contractors and the
communities in which we operate. We are committed to
specific actions related to our employees’ health and
wellbeing, safety and security through the policy.
Our Diversity and Inclusion policy promotes equal treatment of
our employees. This is an ongoing effort aimed at reducing
gender-related disparities in an industry that remains largely
male-dominated. DNO believes that employing a diverse
workforce brings valuable perspectives and knowledge. We
recruit individuals based solely on merit and their suitability for
the role and provide equal opportunities for all employees. To
ensure discrimination is prevented, leaders in DNO receive
training to ensure employees are treated fairly and evaluated
Sustainability statement
34 DNO Annual Report 2025
objectively. The procedures for reporting and following up on
incidents of discrimination are described below in the section
Processes to remediate negative impacts and channels to
raise concerns.
The Group’s Major Accident Prevention policy ensures that
DNO and its employees do everything they can to prevent
severe accidents and to protect employees from such
accidents should they nonetheless occur. The Group has an
occupational health and safety management system which is
used for mitigation and reporting incidents. The Code of
Conduct sets out everyone’s responsibility to report HSSE
incidents, unsafe conditions and near misses to the line
manager or the HSE manager.
The Group’s Managing Director is accountable for the Code of
Conduct and HSSE policies across the organization. The
Diversity and Inclusion and Major Accident Prevention policies
are implemented by management at all levels of the Group
through the Group's business management system. All
policies are available for all our employees on the Group’s
intranet site and are a part of our onboarding program.
DNO's Board of Directors and senior management are also
committed to ensure that there is no modern slavery (including
forced labor and child labor) or human trafficking in any part of
our business. This is safeguarded through the ERM system,
with provisions included in the Business Partner Code of
Conduct, as well as through our broader commitment to
uphold fundamental human rights, as outlined in the Code of
Conduct, although modern slavery is not explicitly mentioned
in any policy. Best employment practices are aligned with the
fundamental principles and rights at work as set out in the ILO
Conventions.
Processes for engaging with own workforce and workers’
representatives about impacts
DNO is committed to maintaining an open and constructive
dialogue with its employees. In all areas of operation, the most
important channel for employee engagement is direct
engagement through line management. In addition, the
Group’s Chief Human Resources and Corporate Services
Officer has functional responsibility for ensuring that employee
engagement takes place and for informing DNO’s senior
management about the results.
In Norway, the Group engages with its workforce through
Working Environment Committees (WECs), which were
established as required under the Norwegian Working
Environment Act. Committee meetings are normally conducted
on a quarterly basis but may be more frequent in special
circumstances, for example during reorganizations. The
committees have an important role in monitoring and
improving the working environment and in ensuring that the
Group complies with laws and regulations. In addition, DNO
Norge AS has an agreement with the trade union Tekna. DNO
regularly arranges town hall meetings for all employees,
engages in dedicated sessions with elected employee
representatives, including the employee-elected safety
representative and conducts employee satisfaction surveys.
The engagement with own workforce is primarily used to
evaluate the effectiveness of actions and initiatives. However,
it may also in some cases, such as reorganizations, be used to
discuss and determine approaches to mitigation. We consider
that the channels we use to engage with our employees are
effective. The effectiveness is assessed through various
measures, including the employee satisfaction surveys and the
analysis of trends in reporting of concerns both in terms of
number and materiality.
Processes to remediate negative impacts and channels
for own workforce to raise concerns
DNO does its utmost to remediate any negative impact on
employees. The general procedure for providing remedy is not
set out in a formalized process, as it will depend on the
specific case and its circumstances, so remedy is determined
on a case-by-case basis where necessary.
Employees are encouraged to report any concerns relating to
the workplace to their line manager, or if circumstances require
it, a representative from the Human Resources department or
a compliance officer. DNO has a whistleblowing channel for
those who wish to raise such matters in strict privacy or even
anonymously. Only the Head of Compliance has access to
reports submitted via the whistleblowing channel and is
obliged to assess all such reports and to investigate all cases
that are assessed as eligible in accordance with the Group’s
whistleblowing and incident investigation procedures. The
status of concerns raised is reported by the Compliance
department to the Managing Director quarterly and the Audit
and Risk committee biannually.
Information about the channels to raise concerns is provided in
the Group’s Code of Conduct and the Whistleblowing
procedure, which all employees and contractors are expected
to have received, read and understood. This is reinforced
through the mandatory Code of Conduct training digitally
and/or face-to-face. The Group continuously monitors whether
employees have the necessary trust in the channels to raise
concerns via employee surveys in some locations and direct
engagement in all locations.
Through its risk assessment, DNO has identified field workers
as exposed to risk of injuries due to the nature of the oil and
gas industry. The results were validated through the DMA
carried out for this report. The DMA also identified a risk that
female workers may feel isolated in a male-dominated
environment. Building on these insights, DNO continuously
works to improve its HSSE procedures and the Group
monitors whether the principles set out in its Diversity and
Inclusion policy are being followed.
Actions related to own workforce
At DNO, we are committed to managing material IROs through
specific actions and resource allocation. We focus on the
prevention of work-related injuries and actively promote health
to reduce risks associated with the work environment,
including both physical and mental ill-being. Our actions are
primarily focused on formalizing policies and procedures
covering all operational activities. DNO continuously strives to
improve any areas with negative impact on the workforce.
Through feedback from the employee survey and line manager
dialogues, employees can highlight areas where additional
actions are needed. The need for changes in processes or
policies is also assessed through the follow-up of reporting
through the occupational health and safety management
system.
The policies and processes that DNO have in place, along with
channels for reporting, ensure the Group’s own practices do
not cause or contribute to material negative impacts on the
workforce. They also serve as safeguards to ensure the
workforce is protected against any tensions that arise between
prevention and mitigation of material negative impacts and
other business pressures.
Sustainability statement
DNO Annual Report 2025 35
The human resources team at the corporate office oversees
areas such as diversity and inclusion, training and
performance management. In addition, employees within the
business units monitor these areas, with a primary focus on
health and safety matters. The cost of these roles and the
implementation of related actions related to our own workforce
are considered part of the running costs.
Below are descriptions of the key actions and metrics related
to working conditions, health, safety and security and equal
treatment and opportunities for all. The Group continues to
monitor these material areas and assesses the effectiveness
of actions and initiatives by regularly reviewing the relevant
metrics. In relation to own workforce, the ambitions within each
material area are set out below and these are primarily based
on absolute ambitions, such as the ambition of zero serious
health and safety incidents each year, rather than measures of
progress from a base line.
3.2 Working conditions
As of 31 December 2025, DNO’s workforce increased to 1,159
employees, up from 1,070 in 2024 mainly due to the Sval
Energi acquisition. Women comprised 15 percent of the
workforce, compared with 14 percent in 2024. Sixty-seven
individuals were based at the Group’s headquarters in Oslo
and 1,092 were engaged across our Middle East and North
Sea operations, including in offices in Dubai, Erbil and
Stavanger.
During our work with the DMA, we assessed impacts related to
the working conditions of our employees. Working condition
metrics are tracked and closely followed by the human
resources team to ensure adequate wages, secure
employment and work-life balance. Employees in the North
Sea business unit anonymously answer an employee
satisfaction survey annually in order for the effectiveness of
policies and actions to be measured. The survey is also used
to map out potential areas of improvement.
DNO aims to provide competitive wages to all our employees.
The majority of employees are individually remunerated and
salaries are based on several factors. Regular market
assessments are conducted to ensure we are offering
competitive wages to employees in each of the regions in
which we operate.
Further, DNO employees are entrusted with a wide range of
responsibilities and various tasks. This may sometimes be
time-consuming and stressful, which in turn might impact the
health and work-life balance of employees. DNO aims to
achieve a healthy balance between its employees' work and
private lives. To monitor potential negative impacts related to
work-life balance, DNO in some of the locations undertakes
annual employee satisfaction surveys and has working
environment committees, while in all locations it maintains
dialogue with employees through line management and the
human resources teams. The purpose of this engagement is to
assess the level of the potential impact and identify areas
where additional measures are required. Internal employee
surveys show stable levels of job satisfaction. DNO has not
experienced increased sick leave due to health impacts that
can be linked to poor work-life balance, such as burnout. DNO
has not set any specific actions related to mitigating potential
negative impact on own workforce when it comes to work-life
balance, although the Group’s intentions are clearly described
in the Code of Conduct’s principle 2 (ensure a safe working
environment) and principle 3 (treat everyone with respect).
DNO does its utmost to remediate the negative impact it may
have on employees. However, some impacts are hard to
remediate as they are out of DNO’s control and consequences
of larger geopolitical situations. Issues are handled on a case-
by-case basis based on employee feedback. It is our
experience that this is the best approach to accommodate our
employees and their needs resulting from specific impacts.
During 2025, there were no actual material impacts that
required the Group to take action to provide or enable remedy
in relation to working conditions. DNO aims to continuously
track the effectiveness of our policies as part of the actions
outlined throughout this section. We emphasize continued
learning and awareness to prevent actual instances of
negative impacts. If such impacts occur, we have measures in
place to handle the cases within relevant legal frameworks.
Additionally, we track and openly communicate numerous
metrics on our own workforce as outlined below, which may be
utilized for future decision making.
Metrics
Adequate wages
DNO's ambition is to offer adequate and fair wages to all
employees aligned with the principle of equal pay for work of
equal value. The majority of our employees are individually
remunerated and salaries are based on several factors. DNO
has grouped employees according to their placement in the
Group’s job ladder to ensure fair compensation practices. We
ensure that all of our employees are paid an adequate wage
that aligns with applicable benchmarks for their location.
Characteristics of employees
Employment figures are yearend figures and represent
headcount. All data is directly sourced from our employee
management system. In 2025, we had a turnover rate of four
percent with 39 employees leaving the Group (five percent and
55 employees in 2024).
Employees headcount by gender
Gender
2025
2024
Male
989
922
Female
170
148
Other
0
0
Total employees
1,159
1,070
Employees headcount by country/region
Country
2025
2024
Norway
293
198
Kurdistan region of Iraq
795
796
United Kingdom
2
3
UAE
67
71
Other
2
2
Sustainability statement
36 DNO Annual Report 2025
Employees by contract type, broken down by gender
(headcount)
Financial year 2025
Female
Male
Not
disclosed
Total
Number of employees
170
989
-
1,159
Number of permanent employees
164
894
-
1,058
Number of temporary employees
6
95
-
101
Number of non-guaranteed hours
employees
-
-
-
-
Financial year 2024
Female
Male
Not
disclosed
Total
Number of employees
148
922
-
1,070
Number of permanent employees
140
847
-
987
Number of temporary employees
8
75
-
83
Number of non-guaranteed hours
employees
-
-
-
-
Employees by contract type, broken down by region
(headcount)
Financial year 2025
Middle
East
North Sea
Corporate
(Oslo)
Total
Number of employees
864
238
57
1,159
Number of permanent employees
788
216
54
1,058
Number of temporary employees
76
22
3
101
Number of non-guaranteed hours
employees
-
-
-
-
Financial year 2024
Middle
East
North Sea
Corporate
(Oslo)
Total
Number of employees
869
146
55
1,070
Number of permanent employees
812
123
52
987
Number of temporary employees
57
23
3
83
Number of non-guaranteed hours
employees
-
-
-
-
The majority of temporary employees are international
contractors engaged in the Middle East on fixed-term
contracts, where part of their mandate is to transfer knowledge
and support the development of a local workforce. Temporary
employees also include consultants, who are typically engaged
for defined assignments that require specialized external
expertise or to provide cover for employees on long-term
leave.
Reporting policies and methodology are disclosed in section
3.5.
3.3 Health, Safety and Security
Health and safety
The health and safety of employees and contractors is
paramount to DNO. We believe all accidents are preventable
and are committed to zero serious health and safety incidents.
Ensuring a safe working environment by mitigating risks is
essential for maintaining efficient operations and a motivated
workforce. Our approach to health, safety and security is
formalized in our HSSE policy and Code of Conduct. DNO
acknowledges and respects internationally recognized human
and labor rights standards. The majority of the actions to
mitigate and prevent the negative impacts related to health
and safety are ongoing processes and procedures as part of
daily operations, rather than time-bound actions. The most
important processes and procedures are described below,
along with additional actions implemented in 2025 and those
planned for the future.
Our comprehensive occupational health and safety
management system is used to identify, understand, mitigate
and manage risks throughout our operations, while following
regulatory requirements and industry standards. All employees
and contractors are covered by the system and must comply
with it. If an incident or accident occurs, it must be reported
using the available channels. An investigation is then carried
out to identify the necessary corrective and remediation
measures. The implementation and effectiveness of these
measures is followed up by the relevant line managers and
tracked in management reporting systems.
To help keep the workplace safe, we prioritize asset integrity
through sound design, regular maintenance, inspections and
effective management of change procedures. We ensure an
open reporting culture for incidents and near misses, allowing
us to learn from and prevent recurring incidents in all parts of
the business.
In the North Sea, DNO has implemented the industry safety
enhancement program Always Safe to strengthen the safety
culture. Always Safe is a web platform maintained by the four
of the largest operators in the NCS with HSSE learning
packages released on a quarterly basis, for all operators and
suppliers in the North Sea to use in their safety training. The
ultimate objective is to prevent unwanted incidents and
contribute to zero serious accidents. The Always Safe initiative
is put into practice through regular safety training sessions and
encourages safe behaviors across the organization, targeting
personnel with operational responsibilities.
In 2025, DNO launched a project to reassess and update
barrier management for the operated Trym and Marulk subsea
fields in the North Sea. Barrier management is a systematic
approach used to identify, design, implement and maintain
physical, technical, organizational and human barriers that
reduce the likelihood of accidents and mitigate potential
consequences should they occur. Multidisciplinary bow-tie
sessions were held, leading to revised safety benchmarks.
DNO has implemented safe cards as a reporting tool in its
Kurdistan operations to promote awareness and reporting of
HSSE conditions and behaviors that do not align with DNO's
policies, procedures or industry standards. Safe cards are
submitted electronically via DNO’s internal management
reporting system, allowing developments to be continuously
monitored and assessed, with mitigation actions implemented
as and when required. Safe card training in 2025 focused on
the value of the safety awareness which in turn drives
behavioral change.
In 2025, DNO continued the roll-out of initiatives to improve
traffic safety at its Kurdistan sites. Driving represents a
considerable personnel risk within onshore oil and gas
operations, especially in the value chain (e.g., contractors). To
improve driving safety, portable In-Vehicle Monitoring System
(IVMS) units, already installed in all DNO vehicles, were also
introduced in contractor vehicles entering DNO sites. The
IVMS gives the driver feedback in real-time about driving
behaviors and allows DNO to monitor speed, acceleration and
harsh braking, which are linked directly to at-risk driving habits.
The effectiveness of this initiative is evident in the complete
elimination of serious motor vehicle incidents compared with
previous years. Incidents are rated on a 1 to 5 scale and any
event rated level 3 or above is considered serious, as it
involves at least one lost workday.
In 2025, DNO continued its Being Safe 24/7 – Work Safe, Safe
Home campaign in Kurdistan, which aims to bridge work and
home life by making safety a central part of employees’
Sustainability statement
DNO Annual Report 2025 37
everyday activities both at work and with their families. The
effectiveness of this initiative is monitored through safety
performance metrics.
Going forward, DNO aims to further improve HSSE training at
the sites in Kurdistan. To improve the effectiveness of training
and overcome language barriers, the Group has recently
introduced virtual training methods in addition to its traditional
text-based training, induction programs and toolbox talks. This
is expected to increase safety awareness which in turn may
reduce the rate of incidents.
During the year, there were recorded zero DNO employee
work-related incidents and five work-related incidents involving
contractors (one and three, respectively, in 2024). All five
incidents were Medical Treatment Cases (MTC) where the
contractors returned to work following treatment. Each case
was thoroughly investigated and addressed in line with DNO’s
policies and procedures, with corrective actions implemented
where necessary.
In addition, as part of our compliance obligations, we conduct
audits to verify that our activities and our contractors' activities
conform to DNO’s standards, with particular emphasis on
health and safety.
Security
DNO is committed to providing a secure work environment for
all personnel involved in its activities. Risks related to
cybersecurity, sabotage and intended hostile activity receive
increased attention as a result of the current geopolitical
situation.
Due to a security environment which at times can be
challenging in Kurdistan, there are security personnel at all
field locations at all times to ensure the safety of all
employees. This consists of both DNO-hired security staff and
the government-run oil police force. DNO has also established
a layered security system whereby personnel and visitors are
required to pass through several security checkpoints before
entering the premises.
In July 2025 drone strikes disrupted operations across the
Tawke contract area, causing damage to processing
infrastructure at both the Tawke and Peshkabir fields and
triggering temporary field shutdowns. There were no
casualties. In coordination with the Kurdistan Regional
Government (KRG), mitigation measures were implemented
immediately and subsequently evaluated to ensure the
security of the employees and contractors. These included
physical barriers to protect people, reduced presence at
processing sites and adjusted work patterns to minimize
exposure.
Metrics
A key metric widely used for benchmarking safety performance
of companies in the oil and gas industry is the Total
Recordable Injury Frequency (TRIF), which is equivalent to the
ESRS defined metric of Work-Related Accident Rate. TRIF is
defined as the number of recordable injuries per million hours
worked. It includes all work-related incidents requiring medical
treatment beyond first aid, restricted work cases and lost-time
injuries. All incidents are tracked in the management reporting
system and reported weekly to management and quarterly to
the Board’s HSEC committee. In 2025, DNO’s TRIF was 1.18
for operational activities, including both employees and
contractors working at DNO’s facilities, compared with 1.06 in
2024. This is above the industry average TRIF of 0.81 based
on the latest available data from 2024 from International
Association of Oil and Gas Producers (IOGP). The increase is
mainly due to a rise in medical treatment cases involving
contractors. Over the past two years, DNO has focused safety
programs on employees, including How We Work Safely and
the Behavioral Safety Program, which contributed to zero
work-related accidents among employees in Kurdistan in 2025.
To reduce accidents among contractors, the 2026 plan is to
strengthen support through line management and extend
behavioral safety training, including the rollout of How We
Work Safely Phase II. The Group is determined to improve its
safety performance and aims for a TRIF better than the IOGP
industry average.
There were no fatalities among DNO employees or other
workers on our operated sites due to work-related injuries or
occupational ill health in 2025 or 2024.
Health and safety
Indicator
2025
2024
Work-Related Accident Rate*
Employees (per million hours worked)
-
0.49
Contractors (per million hours worked)
2.88
1.73
Total (per million hours worked)
1.18
1.06
Number of Work-Related Accidents**
Employees
-
1
Contractors
5
3
Total
5
4
Exposure hours
Employees (thousand hours)
2,499
2,059
Contractors (thousand hours)
1,733
1,730
Total (thousand hours)
4,232
3,789
*Work-Related Accident Rate is equivalent to Total Recordable Injury Frequency
(TRIF).
** Work-Related Accidents are equivalent to Recordable Injuries.
Reporting policies and methodology are disclosed in section
3.5.
3.4 Equal treatment and opportunities for all
The oil and gas industry globally – and in our areas of
operations in Kurdistan and the North Sea – historically has
had a workforce with a higher proportion of men, which
contributes to gender disparity. DNO’s approach to offering
employees, both women and men, a wide variety of tasks and
responsibilities, including training and development, continues
to have a positive impact on employees’ career development.
The majority of actions related to these areas are embedded in
the Group’s processes and procedures, rather than through
time-bound actions and initiatives.
DNO’s Code of Conduct sets out a commitment to equal
treatment and opportunities for all, in addition to stating the
Group’s commitment to inclusion and focus on fostering an
open and diverse culture. The Group aims to eliminate
discrimination, including harassment and promotes equal
opportunities to advance diversity and inclusion. The Code of
Conduct explicitly addresses discrimination based on race,
religion, sexual orientation, age and gender.
Managers at DNO are responsible for setting the tone and
serving as role models, while ensuring that everyone in their
respective team receives the same information and
opportunities to contribute. They have an important role in
preventing, mitigating and acting upon discrimination once
detected and advancing diversity and inclusion. The Group
has zero tolerance for any form of abuse, bullying, humiliation,
intimidation or harassment and does not condone any
Sustainability statement
38 DNO Annual Report 2025
threatening or degrading behavior. Employees are encouraged
to stand up against harassment, treat everyone with respect
and be sensitive to different cultures and customs.
The Board, senior management and all leaders in DNO are
committed to and accountable for focusing on diversity and
inclusion. We expect all of our employees, contractors, interns
and visitors at all levels and locations in DNO to value diversity
and equality and contribute to building a truly inclusive culture.
DNO has introduced a Diversity and Inclusion policy outlining
guiding principles and implementation strategy.
In cases of actual negative impact, any remediating efforts
would be determined on a case-by-case basis, depending on
the specific details and circumstances. During the year, there
was one reported case of harassment (three in 2024) which
was investigated and addressed in line with DNO’s policies
and procedures, with corrective actions implemented where
necessary.
DNO aims to continuously track the effectiveness of our
policies as part of the actions outlined throughout this section.
We emphasize continued learning and awareness to prevent
actual instances of negative impacts. If such impacts occur, we
have measures in place to handle the cases within relevant
legal frameworks. Additionally, we track and openly
communicate numerous metrics on our own workforce as
outlined below, which may be utilized for future decision
making.
Metrics
DNO continues to recruit and promote women, who
represented 15 percent of the Group’s overall workforce and
33 percent of employees in managerial, administrative and
other non-field operational positions as of yearend 2025 (14
and 33 percent, respectively, in 2024). The increase follows
from the increase in headcount after the acquisition of Sval
Energi. In 2025, three members of the Board of Directors and
three members of the Group’s senior management were
women, representing 43 and 33 percent of the total,
respectively. By age group, employees below 30 years old
represented 11 percent of employees, while 72 percent were
between 30 and 50 with the remaining 17 percent being over
50 years old (15, 66 and 19 percent in 2024).
Remuneration
Indicator
2025
2024
Gender pay gap
-76.3%
-71.9%
Annual total remuneration ratio
20.1
22.1
Incidents, complaints and severe human rights impacts
Indicator
2025
2024
Incidents of discrimination (including harassment)
-
3*
Number of complaints made through the channel to raise concerns
35
32
Total amount of fines, penalties, and compensation for damages (USD)
-
-
*2024: No discrimination cases reported; three harassment cases reported. None of the
reported cases were raised to the National Contact Point for OECD Multinational
Enterprises.
In 2025, DNO did not receive concerns on human rights
violations and/or incidents in relation to our own workforce, nor
did we incur any fines, penalties or compensation for human
rights related issues.
Reporting policies and methodology are disclosed in section
3.5.
3.5 Reporting policies and methodology
Reported
metric*
Policy, methodology and assumptions
Headcount
Number of employees at year end.
Turnover rate
Turnover rate is defined as the number of employees who left the
Group divided by the average number of employees, multiplying by
100.
Work-Related
Accident Rate
Work-Related accident rate is defined as number of work-related
accidents divided by exposure hours, multiplied by 1,000,000.
Number of Work-
Related
Accidents
Number of Work-Related accidents is defined as the number of
reported cases of accidents reported in our health and safety
management system.
Exposure hours
Exposure hours are defined as total hours worked by people in our
own workforce.
Gender pay gap
Gender pay gap is defined as the difference of average pay levels
between female and male employees, expressed as percentage of
the average pay level of male employees. Input to the calculation
has been withdrawn from the Human Resources Management
System.
Annual total
remuneration
ratio
The annual total remuneration ratio is defined as the highest paid
individual to the median annual total remuneration for all employees.
To ensure comparable data, the calculations are performed based
on the annual salary of all permanent workers in USD. The highest
paid individual is defined as the individual with the highest annual
salary of all permanent workers in USD. Input to the calculation has
been withdrawn from the Human Resources Management System.
Incidents of
discrimination
(including
harassment)
Number of reported incidents of discrimination, including
harassment, through the confidential channel for reporting such
matters.
Number of
complaints made
through the
channel to raise
concerns
Number of reported complaints through the confidential channel for
reporting such matters.
*The metrics in this chapter have been validated by our assurance provider.
3.6 Workers in the value chain
DNO cares about the welfare of all workers within its value
chain. This encompasses people performing a wide variety of
tasks such as production and processing of raw materials,
manufacturing of equipment, transportation, drilling of wells,
petroleum processing, waste disposal and bringing products to
the market. DNO works to identify, understand and manage
personnel risks in our value chain to ensure that we operate
sustainably and responsibly. Due to the Group’s large and
complex value chain, including suppliers and sub-suppliers
within some regions and industries that have a lower
enforcement rate of human rights, there is a risk that instances
of child and forced labor might occur within DNO’s value chain
activities. Despite DNO’s strict requirements and processes for
supplier risk assessment, such cases may be difficult to
uncover.
Value chain workers at DNO’s operated sites are subject to the
same workplace HSSE standards as our own employees and
any incidents involving such value chain workers are
investigated and recorded in our safety statistics. In general,
the Group maintains strict oversight of its facilities to ensure a
safe working environment. For value chain workers employed
outside of DNO’s operated sites, the Group seeks to address
working condition concerns through its contracting and
supplier risk assessment processes.
From the DMA, we identified two material IROs concerning
workers within the value chain over the short term, both of
which have a potential negative impact. The negative impacts
cover the elevated risk of personal and exposure injuries for
workers within several parts of the value chain and the
possible gender disparity women may experience working in a
male-dominated industry. These impacts are considered
inherent to the industry in which we operate.
Sustainability statement
DNO Annual Report 2025 39
Policies related to value chain workers
DNO has a clear governance framework by which we conduct
our affairs related to our value chain workers. We have a
Business Partner Code of Conduct that applies to all suppliers
and customers, which requires commitment to comply with
DNO’s environmental and safety requirements and
internationally recognized employment practices, including, but
not limited to, prevention of modern slavery, child labor,
harassment or discrimination and acceptance of freedom of
association, whilst promoting decent working hours and living
wages set in accordance with applicable laws. We have
dialogue with our suppliers to assess and improve their
performance, including with respect to the environment. We
use risk assessments to identify the frequency and level of
detail of such dialogue. The supplier risk assessment is based
on the type of services provided, geographic location, incident
reports, contract size and operational location. For suppliers
with an increased risk profile, DNO assesses documented
policies and practices of suppliers and implements preventive
and mitigating measures with continuous tracking and when
necessary, DNO takes corrective actions. We also audit
selected suppliers to ensure compliance with relevant
regulations and DNO’s standards, including with respect to
ESG standards. In addition to the Business Partner Code of
Conduct, DNO has embedded HSSE requirements in all of its
contracts with suppliers. The Head of Compliance is
accountable for the policy and the General Managers of each
business unit are responsible for implementation aided by
DNO’s supply chain and compliance functions. As we set the
same expectations for our business partners as for ourselves,
the Diversity and Inclusion policy and the Major Accident
Prevention policy are also considered relevant for our value
chain workers. All of these, including the HSSE requirements,
reduce the risk of major accidents and disparity (e.g., based on
gender) in our value chain. The Business Partner Code of
Conduct is available on DNO’s website and other relevant
policies are made available to the supplier workers, as
required.
DNO acknowledges and respects internationally recognized
human and labor rights standards. Our human rights
commitments have UN Global Compact as a reference for
responsible business conduct, as set out in the Code of
Conduct. Additionally, DNO conducts an annual assessment of
its own operations and its value chain, based on the principles
of the OECD Guidelines for Business Enterprises. This
assessment aims to identify and address significant risks and
adverse impacts on human rights and decent working
conditions. Our Business Partner Code of Conduct does not
explicitly mention engagement with value chain workers;
however, we regularly evaluate and modify our Code of
Conduct, policies and procedures, as risks are ever evolving.
DNO did not identify any actual adverse impacts on human
rights and decent working conditions in 2025 related to our
value chain.
Process of engaging with value chain workers about
impacts
At our operated sites, DNO’s business partners are expected
to ensure that value chain workers are subject to the same
standard as our own employees and are expected to report on
matters relevant to working conditions. Informational flyers are
available, highlighting key aspects of the Code of Conduct and
other essential procedures. DNO conducts a risk assessment
prior to contract signing, which is described within the actions
below. This risk assessment includes dialogue with
representatives for the supplier, particularly for suppliers with a
higher risk profile. As part of the ERM, DNO can and does
conduct audits of its suppliers against the requirements set out
in the Business Partner Code of Conduct, including but not
limited to HSSE standards and the working conditions of value
chain workers. Apart from this, DNO does not currently have in
place any formalized processes to engage with value chain
workers, but the Group is assessing whether any measures
should be implemented.
DNO’s partner-operated sites in the North Sea are in highly
regulated countries with established legal frameworks and
experienced operators. The regulatory environments set clear
requirements for worker rights and safety. DNO verifies
through existing mechanisms, including direct engagement
with our operators and participation in joint venture
governance processes.
Process to remediate negative impacts and channels for
value chain workers raise concerns
We encourage workers in the value chain or those with
concerns regarding our workers in the value chain to raise
these through our confidential channel for reporting concerns,
which is described in more detail within section 4.1 Business
conduct. Workers in the value chain are made aware of such
channels for raising concerns through the Code of Conduct
available on the Group’s website. DNO is currently exploring
ways to ensure the effectiveness of the channel and assess
awareness and trust in using it to raise concerns.
All processes and actions with regards to providing remedy in
instances where DNO has caused or contributed to actual
material impacts would be determined on a case-by-case
basis. The individual circumstances would be assessed in
order to determine appropriate follow-up and remedial
measures.
Actions related to value chain workers
In order to prevent and mitigate negative impacts related to
workers in the value chain in operated activities, DNO has
established a group-wide risk assessment system to gain
insights into the working conditions across our value chain.
The supplier risk assessment is based on credible proxies for
engagements and analyzes the type of services provided,
geographic location, incident reports, contract size and
operational location. For suppliers with an increased risk
profile, DNO assesses documented policies and practices of
suppliers, as well as implementing preventive and mitigating
measures with continuous tracking and, when necessary, we
take corrective actions.
The risk assessment is conducted ahead of contract signing
and periodically afterwards to ensure that suppliers meet
DNO's ethical behavior and business conduct standards. The
Head of Compliance has the responsibility of ensuring that the
process is conducted. DNO has a robust supply chain process
and management team working with nearly 1,000 suppliers
worldwide.
When DNO enters into new contracts, the Group underscores
the importance of respect for human rights and decent working
conditions in DNO’s Business Partner Code of Conduct.
Concerning our suppliers, we aim to implement improved risk
assessment tools to better visualize our supply chain risks,
including but not limited to supplier employee wages.
The results of our risk assessment process described above
determine further actions DNO takes related to our suppliers,
such as providing or enabling remedies concerning material
impact on workers in the value chain. The Group has sufficient
Sustainability statement
40 DNO Annual Report 2025
and appropriate policies, procedures and initiatives in place for
contractors working on DNO sites. Incidents reported are
monitored through the management reporting system. The
tracking of any high-risk suppliers is used to follow up on
workers in the value chain that DNO has less direct interaction
with.
To enhance the safety of contractors at our Kurdistan sites,
during 2025, DNO continued the roll-out of portable IVMS units
in contractor vehicles entering the Company’s sites. This
initiative is described under section 3.1 Own workforce above.
At DNO, supply chain employees primarily oversee suppliers
and conduct risk assessments, while HSSE staff monitor both
contractors and employees. The costs of these roles and
related workforce actions are included in regular business
expenses.
DNO does not have any ESRS defined targets or metrics that
are considered relevant to workers in the value chain as this
area is managed through ongoing operational processes.
3.7 Affected communities
DNO’s land-based operations in Kurdistan are particularly
prone to affecting local communities due to the nature and
location of the business activities. The Group takes a proactive
approach, ensuring that its business model is informed by and
adapted to the needs of local communities. Our operations are
centered in the areas of Tawke and Baeshiqa, with villages
located near both sites. DNO’s sites cover a considerable area
of land and require a significant number of workers to build,
operate and maintain. Our operations contribute to the
development of local communities, where we create jobs and
hire and train local staff. We also partner with local companies
for services such as civil work, maintenance, transportation,
remediation, catering, health care, security and waste
disposal. We work to ensure that our service providers are not
just competitive but also competent and compliant with DNO’s
Business Partner Code of Conduct and with internationally
recognized human rights standards.
Our DMA identified five IROs related to affected communities
in both the short and medium term. Of these, three are
positive, one is negative and one represents an opportunity.
The positive impacts are primarily linked to our operations in
Kurdistan. We use our operational presence and capability to
provide support to the nearby communities. During DNO’s
more than twenty years in Kurdistan, the Group has supported
infrastructure, agriculture, health and education projects. This
enables the development of infrastructure and boosts local
development.
We also support local communities by prioritizing local
recruitment where suitably qualified candidates can be
identified. This has resulted in most of our employees being
local hires. Additionally, DNO prioritizes selecting local
suppliers over international alternatives when qualifications are
equal. DNO funds various initiatives aimed at supporting local
communities, such as construction of schools and roads.
These efforts foster strong, mutually beneficial relationships
with the communities where we operate.
The potential negative impact arises from DNO's use of land in
Kurdistan that could have directly benefited local communities
through alternative land uses. We acknowledge that the land
on which we operate could have been used for other activities,
including farming. DNO is in continuous dialogue with these
communities to ensure that we understand and limit any
negative impacts to the best of our ability and we have
procedures in place for compensating landowners as
described below. Maintaining a good relationship with local
and affected communities as we minimize negative impacts
and optimize positive impacts and opportunities is important to
DNO. This opportunity for business expansion in the future is
largely connected with the positive impacts described above.
The opportunity lies in DNO’s role as a major employer in
Kurdistan, which generates both direct and indirect positive
effects for the local economy. Our engagement in affected and
local communities is also a reputational opportunity as it
enhances our relationship with the community and opens
avenues for further business expansion and partnerships.
Policies related to affected communities
DNO has implemented procedures governing land acquisition
and Corporate Social Responsibility (CSR) projects in
Kurdistan. The Land Acquisition and Compensation procedure
outlines how DNO engages with affected communities,
including private landowners, when acquiring or leasing land
for operational, drilling or project needs. The procedure
includes a land return process, assessing potential
environmental or social risks to the owner before land is
handed back, reinforcing DNO’s commitment to responsible
land management. The CSR projects procedure outlines steps
taken to identify and execute CSR projects which provide
benefit to local communities that are close to the Group's
operations. The procedures do not explicitly mention
indigenous people or refer to UN Guiding Principles on
Business and Human Rights, however, they mandate
collaboration with a local committee that plays a role in the
decision-making process, ensuring community voices are
heard and fair compensation is provided. There have been no
reported cases of breaches of the UN Guiding Principles on
Business and Human Rights, the ILO Declaration on
Fundamental Principles and Rights at Work or the OECD
Guidelines for Multinational Enterprises that involve affected
communities during the year.
The procedures are applicable to employees working in or
involved in decision-making which could affect local
communities. It is the General Manager for the Kurdistan
business unit who is accountable for the implementation of the
procedures and they are available for all employees through
the Group’s intranet.
DNO does not have a specific whistleblowing procedure for
external stakeholders covering protection against retaliation for
individuals that use channels to raise concerns. However, the
DNO Code of Conduct and the DNO Business Partner Code of
Conduct available online encourage external stakeholders to
raise questions or concerns regarding suspected or confirmed
violations of the commitments in the Business Partner Code of
Conduct to DNO’s Compliance Department. Moreover, DNO
promotes reporting of Code of Conduct violations via posters
and digital campaigns available across all our sites.
Together with the Code of Conduct, which sets out the policies
for employee behavior and our contributions to the
communities where we operate, these procedures further
reinforce DNO’s commitment to respecting human rights and
following the principles of the UN Global Compact.
Additionally, DNO conducts an annual assessment of its own
operations and value chain, based on the principles of the
Sustainability statement
DNO Annual Report 2025 41
OECD Guidelines for Business Enterprises. This assessment
aims to identify and address significant risks and adverse
impacts on human rights and decent working conditions.
Processes for engaging with affected communities about
impacts
The Group is focused on developing strong engagement with
affected communities in Kurdistan. The communities are
mainly small villages located in vicinity of our field operations
that might be affected by drilling or production activities in the
area. The engagement involves discussions with local leaders
and authorities at all affected locations to understand
community needs. There are no set intervals between such
meetings as frequency depends on the need. The
responsibility for this engagement lies with the Country
Manager in Kurdistan. Typically, DNO initiates these meetings.
Local leaders are, however, able to contact the Group through
the CSR manager to either ask for a meeting, raise concerns
or give feedback. The DNO CSR function has worked closely
with local communities since DNO entered Kurdistan more
than twenty years ago, ensuring that the interests of local
communities are appropriately considered. Engagement takes
place through both formal and informal meetings, which serve
as an established channel for local communities to raise
concerns. Based on the long history of consistent engagement
and follow-up, local communities have developed confidence
in using this channel to voice their concerns. The effectiveness
of DNO's engagement is assessed through the successful
implementation of CSR projects and visible community
improvements. DNO also supports local economies by
employing local workers and using local suppliers. Actions in
relation to this are integrated into regular operations at the
business unit level.
In the North Sea, DNO’s operated and partner-operated
activities primarily take place offshore, meaning there are few
local communities that are directly affected by operations.
However, there are stakeholders such as fisheries which could
be affected by our activities. All drilling activities require
discharge permits that are subject to public consultation. Field
development projects require comprehensive impact
assessments that are subject to public hearing, forming the
basis for the governmental approval process. For new field
developments in Norway, regional impacts on society and
environment are an integrated part of the impact assessment
process.
DNO aims to continuously track the effectiveness of our
policies as part of the actions outlined throughout this section.
Processes to remediate negative impacts and channels
for affected communities to raise concerns
DNO compensates local landowners in Kurdistan for land use
in accordance with local laws and government guidelines while
striving to minimize its footprint and negative impacts.
When we no longer require land for our operations, we
remediate the land before returning it to its owner. Aligning our
remediating processes with the needs and wishes of the
affected communities and the local and regional authorities is
important to us. We develop these actions based on the
outcomes of our engagement with relevant communities and
the authorities. We determine effectiveness by observing
community improvements and gathering feedback from them.
The communities can raise concerns through the authorities,
local leaders or by reaching out to DNO’s local CSR manager.
In the North Sea, rules for remediation of negative impacts are
set by governments and the various license partnerships are
responsible for complying with relevant regulations. In both
Norway and the UK, the closure of an oil and gas field and the
restoration of the area are strictly regulated under each
country’s Petroleum Act and in accordance with framework
established by the OSPAR Convention under which, 15
governments and the European Union cooperate to protect the
marine environment of the North-East Atlantic. Detailed
decommissioning and restoration requirements also take into
account the interests of other stakeholders, including the
fishing industry.
The actions related to preventing and mitigating negative
impacts on local communities are derived through the current
processes and procedures in place. Specific actions are
developed on a case-by-case approach and DNO does not
currently have other specific actions planned as the Group
deems the processes and procedures currently in place to be
sufficient measures to mitigate and remediate any negative
impacts identified. The Group continues to work closely with
local leaders and authorities to ensure any changes in impacts
or need for additional actions are handled in an appropriate
manner. DNO does not have any ESRS defined targets or
metrics that are considered relevant to affected communities
as this is considered a continuous process. The effectiveness
of the existing processes and procedures is assessed through
continuous dialogue with local leaders and authorities, as
outlined above.
4. Governance
4.1 Business conduct
DNO is committed to ethical, sustainable and responsible
operating policies and practices of the highest order. It is
critical that each and every one of our staff always keep in
mind how we act and how we conduct our business. The
section below describes how DNO has put in place policies,
procedures and processes to guide and inform employees of
the Group’s expectations and their responsibilities.
The DMA identified three material IROs related to governance,
which are the risks related to non-compliance with rules and
regulations regarding corruption, whistleblowers and
management of suppliers. Each of the risks are linked to
potential legal, financial and reputational implications for DNO.
Policies
DNO’s corporate governance policies are based on the
Norwegian Code of Practice for Corporate Governance. The
Articles of Association and the Norwegian Public Limited
Liability Companies Act form the legal framework for DNO’s
business activities. DNO is also subject to and complies with
the requirements of Norwegian securities legislation.
Our Code of Conduct sets out the fundamental principles by
which we conduct all of our business. It sets clear expectations
for the business conduct of everyone working for or with DNO
or otherwise acting on behalf of the Group. It therefore covers
risks and opportunities throughout the Group’s value chain.
The Code sets out six principles:
• Comply with laws and regulations;
• Ensure a safe working environment;
• Treat everyone with respect;
Sustainability statement
42 DNO Annual Report 2025
• Act in DNO’s best interest;
• Ensure financial integrity; and
• Take responsibility.
The Managing Director is accountable for the Code of Conduct
and is responsible to ensure its implementation throughout the
Group. The Head of Compliance monitors and verifies
implementation. The Code of Conduct is publicly available on
DNO’s website.
Failure to comply with our Code of Conduct will lead to
disciplinary action. Our Code of Conduct encourages our
personnel to raise concerns about unethical or illegal behavior
and breaches of DNO’s Code of Conduct or other Group
policies. When concerns are raised, our compliance
department assesses and categorizes each case and then
handles them internally or externally, as warranted. If the
concern raises credible allegations of illegal activity, it will be
reported to the relevant authorities.
The Group has a confidential channel for internal and external
stakeholders that wish to raise such concerns in strict privacy
or anonymously. If someone becomes aware of business
conduct at DNO that conflicts with the Code of Conduct, we
encourage them to tell us directly or use our confidential
channel, without fear of retaliation. DNO has strict procedures
to protect whistleblowers including support with legal advice, if
necessary. The Group has established a procedure for
whistleblowing and investigations, the latter of which includes
guidelines for interviews. The procedures form part of the
Group’s business management system, which is available to
staff via DNO’s internal portals. Additional promotional
campaigns on reporting and whistleblower awareness are
displayed in all DNO offices and workplaces, translated into
local languages where appropriate. The whistleblower
procedure states that employees who exercise their right to
notify DNO about misconduct will be protected from any
retaliation.
DNO has a zero-tolerance policy for bribery, corruption and
other illegal, fraudulent or unethical business practices. This is
stated in principle one of our Code of Conduct. We have also
adopted an anti-corruption policy that employees must follow.
The policy is available on the My DNO Compliance intranet
site and brings together all compliance policies, interactive
training programs, business hospitality requests and conflict of
interest registrations. Awareness of corruption and bribery
risks are raised via the mandatory Code of Conduct training for
all staff. Functions particularly exposed to corruption risk, such
as those interacting closely with suppliers, customers and
government bodies, are subject to strict procedures. This
includes requirements for approval of business hospitality and
for reporting conflicts of interest, as well as strict separation of
responsibilities in tender processes and a four-eye principle for
financial approvals.
Every second year, we require group-wide training in our Code
of Conduct, including on anti-corruption, bribery and
whistleblowing. It is designed to equip employees with the
knowledge and skills to identify and prevent corruption and
bribery and to report concerns should they arise. All staff,
including members of the administration, management and the
Board of Directors, are required to receive the training. Extra
training is given to staff in at-risk functions and staff who
receive reports of potential breaches of Group policy. We have
identified the supply chain and human resources departments
as at-risk functions. These are consequently given additional
face-to-face training and updates on relevant issues. In 2025,
all management personnel within these at-risk functions
successfully completed the required training.
Management of suppliers
DNO is committed to managing procurement processes fairly
and with transparency. The Group has a policy to guide our
conduct with suppliers, including regular audits and
assessments to monitor compliance and address any issues.
Non-compliance with regulations may have legal, financial and
reputational consequences.
When entering into a contract with a new supplier, appropriate
due diligence is made both upon contract signing and
periodically thereafter to ensure that the supplier meets DNO's
ethical behavior and business conduct standards.
Environmental and social criteria are also integrated into
DNO's supplier selection process.
Ensuring that our suppliers get paid in a timely manner is
important to DNO. Payment terms differ between jurisdictions
and the maximum number of days until the due date is
sometimes also a matter of negotiation. There are currently no
legal proceedings against DNO related to late payments.
Corruption and bribery
Non-compliance with rules and regulations regarding
corruption can lead to legal, financial and reputational risks.
DNO is committed to maintaining integrity and transparency in
our operations. As described above, DNO has implemented a
system that includes policies, procedures, training programs
and reporting mechanisms to prevent and detect corruption
and bribery. Our Managing Director is accountable for its
implementation throughout the Group.
The system includes an anti-corruption policy communicated
to all employees and relevant stakeholders, outlining the
Group's zero-tolerance stance on corruption and bribery.
Detection mechanisms such as regular audits, risk
assessments and monitoring systems are in place to identify
potential instances of corruption and bribery. We take a
bottom-up approach to identifying and mitigating risks, with the
Board of Directors providing strategic input and oversight.
When allegations or incidents are reported, the course of
action is based on the nature of the investigations. Our
compliance department assesses whether an investigation is
warranted and, if so, whether it should be internal or external
and whether the issue needs to be reported to the relevant
authorities. In rare cases, the allegations or incidents are
reviewed by an independent committee, separate from the
management chain involved, to ensure impartiality and
transparency in the process. The outcomes of these
investigations are reported to the Managing Director quarterly
and to the Board’s Audit and Risk committee biannually to
maintain accountability and transparency.
During 2025, DNO’s compliance team received 35 tips on
potential Code of Conduct violations via the confidential
channel for reporting, of which two were related to suspicions
of corruption or bribery. Up to now, none of the tips resulted in
substantiated cases of corruption or bribery and no actions
were required to address breaches of policies or procedures
related to anti-corruption and anti-bribery. There were no
confirmed incidents involving dismissals, disciplinary actions,
contract terminations, or public legal cases related to
corruption or bribery and there were zero convictions or fines
for anti-corruption and anti-bribery law violations against the
Group.
Sustainability statement
DNO Annual Report 2025 43
Metrics
Actions are integrated into regular operations at the corporate
and business unit level, utilizing human and financial
resources. Resources allocated to business conduct are not
tracked independently but included in the overall operating and
capital expenditure. DNO has not set any targets in relation to
its governance as the Group is focused on building a strong
foundation through policies and processes. DNO has as an
ambition to maintain zero material breaches related to
business conduct.
Anti-corruption and bribery
Indicator
2025
2024
Confirmed incidents of corruption
Total number of incidents
-
-
Confirmed cases employees
-
-
Confirmed cases contractor
-
-
Employees directly involved in corruption incidents in the value chain
-
-
Significant fines
Public legal cases
-
-
Number of convictions
-
-
Value (USD)
-
-
*The metrics in this chapter have been validated by our assurance provider.
Sustainability statement
44 DNO Annual Report 2025
5. Appendices
Appendix 1: Mapping of sustainability statement to the due diligence process
Core element of due diligence
Paragraphs in the sustainability statement
Information provided to sustainability matters addressed by the administrative, management and supervisory bodies
Integration of sustainability-related performance in incentive schemes
Embedding due diligence in governance, strategy and
business model
Cross-topic
Material IROs and their interaction with strategy and business model
Interests and views of stakeholders
Cross-topics
Description of the process to identify and assess material IROs
Processes for engaging with own workforce and workers’ representatives about impacts
Process of engaging with value chain workers about impacts
Engaging with affected stakeholders
Social
Processes for engaging with affected communities about impacts
Cross-topic
Description of the process to identify and assess material IROs
Environment
Material IROs and interaction with strategy and business model
Processes to remediate negative impacts and channels for own workforce to raise concerns
Process to remediate negative impacts and channels for value chain workers raise concerns
Identifying and assessing adverse impacts
Social
Processes to remediate negative impacts and channels for affected communities to raise concerns
Actions and resources in relation to climate change policies
Actions and resources related to pollution
Actions and resources related to biodiversity and ecosystems
Environment
Actions and resources related resources use and circular economy
Actions related to own workforce
Actions related to value chain workers
Social
Processes to remediate negative impacts and channels for affected communities to raise concerns
Taking actions and describing processes to address those
adverse impacts
Governance
Corruption and bribery
Energy consumption
Scopes 1, 2, 3 and total GHG emissions
Pollution to air
Pollution to sea
Environment
Metrics and targets
Actions related to own workforce
Equal treatment and opportunities for all
Adequate wages
Tracking and communicating the effectiveness of these efforts
Social
Health, safety and security
Appendix 2: Disclosures in accordance with Annex II to the EU Taxonomy Regulation
Sustainability statement
DNO Annual Report 2025 45
Appendix 3: Disclosure requirements and references
Material ESRS
topic
Disclosure requirements
Page
BP-1: General basis for preparation of sustainability statements
20
BP-2: Disclosures in relation to specific circumstances
20
GOV-1: The role of the administrative, management and supervisory bodies
20
GOV-2: Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies
20
GOV-3: Integration of sustainability-related performance in incentive schemes
21
GOV-4: Statement on due diligence
21
GOV-5: Risk management and internal controls over sustainability reporting
21
SBM-1: Strategy, business model and value chain
21
SBM-2: Interests and views of stakeholders
22
SBM-3: Material impacts, risks and opportunities and their interaction with strategy and business model
22
IRO-1: Description of the process to identify and assess material impacts, risks and opportunities
23
ESRS 2
IRO-2: Disclosure requirements in ESRS covered by the undertaking’s sustainability statement
24
E1-1: Transition plan for climate change mitigation
25
E1-2: Policies related to climate change mitigation and adaptation
26
E1-3: Actions and resources in relation to climate change policies
26
E1-4: Targets related to climate change mitigation and adaptation
27
E1-5: Energy consumption and mix
27
E1-6: Gross Scopes 1, 2, 3 and total GHG emissions
28
E1 Climate
change
E1-7: GHG removals and GHG mitigation projects financed through carbon credits
28
E2-1: Policies related to pollution
29
E2-2: Actions and resources related to pollution
29
E2-3: Targets related to pollution
29
E2 Pollution
E2-4: Pollution of air, water and soil
29
E4: Biodiversity
and ecosystems
MDR E4: Minimum disclosure requirements biodiversity and ecosystems
30
E5-1: Policies related to resource use and circular economy
31
E5-2: Actions and resources related to resource use and circular economy
31
E5-3: Targets related to resource use and circular economy
31
E5-4: Resource inflows
32
E5 Circular
economy
E5-5: Resource outflow
32
S1-1: Policies related to own workforce
33
S1-2: Processes for engaging with own workforce and workers’ representatives about impacts
34
S1-3: Processes to remediate negative impacts and channels for own workforce to raise concerns
34
S1-4: Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own
workforce, and effectiveness of those actions
34
S1-5: Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities
34
S1-6: Characteristics of the undertaking’s employees
35
S1-9: Diversity metrics
38
S1-10: Adequate wages
35
S1-13: Training and skills development metrics
38
S1-14: Health and safety metrics
37
S1-16: Remuneration metrics (pay gap and total remuneration)
38
S1 Own
workforce
S1-17: Incidents, complaints and severe human rights impacts
37
S2-1: Policies related to value chain workers
39
S2-2: Processes for engaging with value chain workers about impacts
39
S2-3: Processes to remediate negative impacts and channels for value chain workers to raise concerns
39
S2-4: Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value
chain workers, and effectiveness of those actions
39
S2 Workers in the
value chain
S2-5: Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities
39
S3-1 Policies related to affected communities
40
S3-2 Processes for engaging with affected communities about impacts
41
S3-3 Processes to remediate negative impacts and channels for affected communities to raise concerns
41
S3-4 Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected
communities, and effectiveness of those actions
41
S3 Affected
communities
S3-5 Targets related to managing material negative impacts, advancing positive impacts and managing material risks and opportunities
41
G1-1: Business conduct policies and corporate culture
41
G1-2: Management of relationships with suppliers
42
G1-3: Prevention and detection of corruption and bribery
42
G1-4: Incidents of corruption or bribery
42
G1 Business
conduct
G1-6: Payment practices
42
Sustainability statement
46 DNO Annual Report 2025
Disclosure Requirement and related
datapoint
SFDR reference
Pillar 3 reference
Benchmark Regulation
reference
EU Climate
Law reference
Materiality DNO
ESRS 2 GOV-1 Board's gender diversity
paragraph 21 (d)
Indicator number 13 of Table 1 of
Annex 1
Commission Delegated
Regulation (EU)
2020/1816 (27), Annex II
Material
ESRS 2 GOV-1 Percentage of board members
who are independent paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
Material
ESRS 2 GOV-4 Statement on due diligence
paragraph 30
Indicator number 10 Table 3 of
Annex 1
Material
ESRS 2 SBM-1 Involvement in activities related
to fossil fuel activities paragraph 40 (d) i
Indicators number 4 Table 1 of
Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 (28) Table 1: Qualitative information on
Environmental risk and Table 2: Qualitative
information on Social risk
Delegated Regulation (EU)
2020/1816, Annex II
Material
ESRS 2 SBM-1 Involvement in activities related
to chemical production paragraph 40 (d) ii
Indicator number 9 Table 2 of Annex
1
Delegated Regulation (EU)
2020/1816, Annex II
Immaterial
ESRS 2 SBM-1 Involvement in activities related
to controversial weapons paragraph 40 (d) iii
Indicator number 14 Table 1 of
Annex 1
Delegated Regulation (EU)
2020/1818 (29), Article
12(1) Delegated
Regulation (EU)
2020/1816, Annex II
Immaterial
ESRS 2 SBM-1 Involvement in activities related
to cultivation and production of tobacco
paragraph 40 (d) iv
Delegated Regulation (EU)
2020/1818, Article 12(1)
Delegated Regulation (EU)
2020/1816, Annex II
Immaterial
ESRS E1-1 Transition plan to reach climate
neutrality by 2050 paragraph 14
Regulation (EU)
2021/1119,
Article 2(1)
Material
ESRS E1-1 Undertakings excluded from Paris-
aligned Benchmarks paragraph 16 (g)
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453
Template 1: Banking book-Climate Change
transition risk: Credit quality of exposures by
sector, emissions and residual maturity
Delegated Regulation (EU)
2020/1818, Article12.1 (d)
to (g), and Article 12.2
Immaterial, DNO does not
have a transition plan in
line with the Paris
agreement. Thus, only E1-
1 16 (a) is a material
disclosure requirement
ESRS E1-4 GHG emission reduction targets
paragraph 34
Indicator number 4 Table 2 of Annex
1
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453
Template 3: Banking book – Climate change
transition risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
Material
ESRS E1-5 Energy consumption from fossil
sources disaggregated by sources (only high
climate impact sectors) paragraph 38
Indicator number 5 Table 1 and
Indicator n. 5 Table 2 of Annex 1
Material
ESRS E1-5 Energy consumption and mix
paragraph 37
Indicator number 5 Table 1 of Annex
1
Material
ESRS E1-5 Energy intensity associated with
activities in high climate impact sectors
paragraphs 40 to 43
Indicator number 6 Table 1 of Annex
1
Material
ESRS E1-6 Gross Scopes 1, 2, 3 and Total
GHG emissions paragraph 44
Indicators number 1 and 2 Table 1
of Annex 1
Article 449a; Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 1: Banking book – Climate
change transition risk: Credit quality of exposures
by sector, emissions and residual maturity
Delegated Regulation (EU)
2020/1818, Article 5(1), 6
and 8(1)
Material
ESRS E1-6 GHG emissions intensity
paragraphs 53 to 55
Indicators number 3 Table 1 of
Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book – Climate
change transition risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
Material
ESRS E1-7 GHG removals and carbon credits
paragraph 56
Regulation (EU)
2021/1119,
Article 2(1)
Immaterial
ESRS E1-9 Exposure of the benchmark
portfolio to climate-related physical risks
paragraph 66
Delegated Regulation (EU)
2020/1818, Annex II
Delegated Regulation (EU)
2020/1816, Annex II
DNO will not report on this
in 2025 as it is a phase-in
requirement
ESRS E1-9 Disaggregation of monetary
amounts by acute and chronic physical risk
paragraph 66 (a)
ESRS E1-9 Location of significant assets at
material physical risk paragraph 66 (c).
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraphs 46 and 47; Template 5:
Banking book - Climate change physical risk:
Exposures subject to physical risk.
DNO will not report on this
in 2025 as it is a phase-in
requirement
ESRS E1-9 Breakdown of the carrying value of
its real estate assets by energy-efficiency
classes paragraph 67 (c).
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation (EU)
2022/2453 paragraph 34;Template 2:Banking book
-Climate change transition risk: Loans
collateralized by immovable property - Energy
efficiency of the collateral
DNO will not report on this
in 2025 as it is a phase-in
requirement
ESRS E1-9 Degree of exposure of the portfolio
to climate- related opportunities paragraph 69
Delegated Regulation (EU)
2020/1818, Annex II
Immaterial, DNO will not
report on this in 2025 as it
is a phase-in requirement
ESRS E2-4 Amount of each pollutant listed in
Annex II of the E-PRTR Regulation (European
Pollutant Release and Transfer Register)
emitted to air, water and soil, paragraph 28
Indicator number 8 Table 1 of Annex
1 Indicator number 2 Table 2 of
Annex 1 Indicator number 1 Table 2
of Annex 1 Indicator number 3 Table
2 of Annex 1
Material
ESRS E3-1 Water and marine resources
paragraph 9
Indicator number 7 Table 2 of Annex
1
Immaterial
ESRS E3-1 Dedicated policy paragraph 13
Indicator number 8 Table 2 of Annex
1
Immaterial
ESRS E3-1 Sustainable oceans and seas
paragraph 14
Indicator number 12 Table 2 of
Annex 1
Immaterial
ESRS E3-4 Total water recycled and reused
paragraph 28(c)
Indicator number 6.2 Table 2 of
Annex 1
Immaterial
ESRS E3-4 Total water consumption in m 3 per
net revenue on own operations paragraph 29
Indicator number 6.1 Table 2 of
Annex 1
Immaterial
ESRS 2- SBM 3 - E4 paragraph 16 (a) i
Indicator number 7 Table 1 of Annex
1
DNO will not report on this
in 2025 as it is a phase-in
requirement
ESRS 2- SBM 3 - E4 paragraph 16 (b)
Indicator number 10 Table 2 of
Annex 1
DNO will not report on this
in 2025 as it is a phase-in
requirement
ESRS 2- SBM 3 - E4 paragraph 16 (c)
Indicator number 14 Table 2 of
Annex 1
DNO will not report on this
in 2025 as it is a phase-in
requirement
ESRS E4-2 Sustainable land/agriculture
practices or policies paragraph 24 (b)
Indicator number 11 Table 2 of
Annex 1
DNO will not report on this
in 2025 as it is a phase-in
requirement
ESRS E4-2 Sustainable oceans/seas practices
or policies paragraph 24 (c)
Indicator number 12 Table 2 of
Annex 1
DNO will not report on this
in 2025 as it is a phase-in
requirement
Sustainability statement
DNO Annual Report 2025 47
ESRS E4-2 Policies to address deforestation
paragraph 24 (d)
Indicator number 15 Table 2 of
Annex 1
DNO will not report on this
in 2025 as it is a phase-in
requirement
ESRS E5-5 Non-recycled waste paragraph 37
(d)
Indicator number 13 Table 2 of
Annex 1
Material
ESRS E5-5 Hazardous waste and radioactive
waste paragraph 39
Indicator number 9 Table 1 of Annex
1
Material
ESRS 2- SBM3 - S1 Risk of incidents of forced
labor paragraph 14 (f)
Indicator number 13 Table 3 of
Annex I
Immaterial
ESRS 2- SBM3 - S1 Risk of incidents of child
labor paragraph 14 (g)
Indicator number 12 Table 3 of
Annex I
Immaterial
ESRS S1-1 Human rights policy commitments
paragraph 20
Indicator number 9 Table 3 and
Indicator number 11 Table 1 of
Annex I
Material
ESRS S1-1 Due diligence policies on issues
addressed by the fundamental International
Labor Organization Conventions 1 to 8,
paragraph 21
Delegated Regulation (EU)
2020/1816, Annex II
Material
ESRS S1-1 processes and measures for
preventing trafficking in human beings
paragraph 22
Indicator number 11 Table 3 of
Annex I
Immaterial, forced labor
and child labor are not
material sub-topics under
ESRS S1
ESRS S1-1 workplace accident prevention
policy or management system paragraph 23
Indicator number 1 Table 3 of Annex
I
Material
ESRS S1-3 grievance/complaints handling
mechanisms paragraph 32 (c)
Indicator number 5 Table 3 of Annex
I
Material
ESRS S1-14 Number of fatalities and number
and rate of work-related accidents paragraph
88 (b) and (c)
Indicator number 2 Table 3 of Annex
I
Delegated Regulation (EU)
2020/1816, Annex II
Material
ESRS S1-14 Number of days lost to injuries,
accidents, fatalities or illness paragraph 88 (e)
Indicator number 3 Table 3 of Annex
I
DNO will not report on this
in 2025 as it is a phase-in
requirement
ESRS S1-16 Unadjusted gender pay gap
paragraph 97 (a)
Indicator number 12 Table 1 of
Annex I
Delegated Regulation (EU)
2020/1816, Annex II
Material
ESRS S1-16 Excessive CEO pay ratio
paragraph 97 (b)
Indicator number 8 Table 3 of Annex
I
Material
ESRS S1-17 Incidents of discrimination
paragraph 103 (a)
Indicator number 7 Table 3 of Annex
I
Material
ESRS S1-17 Non-respect of UNGPs on
Business and Human Rights and OECD
Guidelines paragraph 104 (a)
Indicator number 10 Table 1 and
Indicator n. 14 Table 3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818 Art 12 (1)
Immaterial, forced labor
and child labor are not
material sub-topics under
ESRS S1
ESRS 2- SBM3 – S2 Significant risk of child
labor or forced labor in the value chain
paragraph 11 (b)
Indicators number 12 and n. 13
Table 3 of Annex I
Material
ESRS S2-1 Human rights policy commitments
paragraph 17
Indicator number 9 Table 3 and
Indicator n. 11 Table 1 of Annex 1
Material
ESRS S2-1 Policies related to value chain
workers paragraph 18
Indicator number 11 and n. 4 Table
3 of Annex 1
Material
ESRS S2-1Non-respect of UNGPs on Business
and Human Rights principles and OECD
guidelines paragraph 19
Indicator number 10 Table 1 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Material
ESRS S2-1 Due diligence policies on issues
addressed by the fundamental International
Labor Organization Conventions 1 to 8,
paragraph 19
Delegated Regulation (EU)
2020/1816, Annex II
Material
ESRS S2-4 Human rights issues and incidents
connected to its upstream and downstream
value chain paragraph 36
Indicator number 14 Table 3 of
Annex 1
Material
ESRS S3-1 Human rights policy commitments
paragraph 16
Indicator number 9 Table 3 of Annex
1 and Indicator number 11 Table 1
of Annex 1
Material
ESRS S3-1 non-respect of UNGPs on
Business and Human Rights, ILO principles or
OECD guidelines paragraph 17
Indicator number 10 Table 1 Annex
1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Material
ESRS S3-4 Human rights issues and incidents
paragraph 36
Indicator number 14 Table 3 of
Annex 1
Material
ESRS S4-1 Policies related to consumers and
end-users paragraph 16
Indicator number 9 Table 3 and
Indicator number 11 Table 1 of
Annex 1
Immaterial
ESRS S4-1 Non-respect of UNGPs on
Business and Human Rights and OECD
guidelines paragraph 17
Indicator number 10 Table 1 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Immaterial
ESRS S4-4 Human rights issues and incidents
paragraph 35
Indicator number 14 Table 3 of
Annex 1
Immaterial
ESRS G1-1 United Nations Convention against
Corruption paragraph 10 (b)
Indicator number 15 Table 3 of
Annex 1
Material
ESRS G1-1 Protection of whistle- blowers
paragraph 10 (d)
Indicator number 6 Table 3 of Annex
1
Material
ESRS G1-4 Fines for violation of anti-
corruption and anti-bribery laws paragraph 24
(a)
Indicator number 17 Table 3 of
Annex 1
Delegated Regulation (EU)
2020/1816, Annex II)
Material
ESRS G1-4 Standards of anti- corruption and
anti- bribery paragraph 24 (b)
Indicator number 16 Table 3 of
Annex 1
Material
Responsibility statement
48 DNO Annual Report 2025
Responsibility statement
DNO ASA’s consolidated financial statements for the period 1 January to 31 December 2025 have been prepared and presented in
accordance with IFRS Accounting Standards as adopted by the EU and additional disclosure requirements in the Norwegian Accounting
Act. The separate financial statements for DNO ASA for the period 1 January to 31 December 2025 have been prepared in accordance
with the Norwegian Accounting Act and Norwegian accounting standards.
We confirm to the best of our knowledge that the consolidated and separate financial statements for the period 1 January to 31
December 2025 have been prepared in accordance with applicable accounting standards and give a fair view of the assets, liabilities,
financial position and results for the period viewed in their entirety, and that the Board of Directors’ report includes a fair review of any
significant events that arose during the period and their effect on the financial statements, any significant related parties’ transactions
and a description of the significant risks and uncertainties to which the Group and the parent company are exposed. Additionally, we
confirm to the best of our knowledge that the country-by-country report as presented in a separate section has been prepared in
accordance with the requirements in the Norwegian Accounting Act.
We further confirm to the best of our knowledge that the 2025 sustainability statement has been prepared in accordance with the
requirements of the Norwegian Accounting Act, European Sustainability Reporting Standards (ESRS) and EU taxonomy regulations.
Oslo, 11 March 2026
Bijan Mossavar-Rahmani
Executive Chairman
Gunnar Hirsti
Deputy Chairman
Elin Karfjell
Director
Anita Marie Hjerkinn Aarnæs
Director
Najmedin Meshkati
Director
Grethe Kristin Moen
Director
Ferris J. Hussein
Director
Christopher Spencer
Managing Director
Responsibility statement
DNO Annual Report 2025 49
Consolidated accounts
50 DNO Annual Report 2025
Consolidated accounts
Consolidated statements of comprehensive income
51
Consolidated statements of financial position
52
Consolidated cash flow statements
54
Consolidated statements of changes in equity
55
Note disclosures
Note 1
Accounting principles
56
Note 2
Segment information
58
Note 3
Revenues
60
Note 4
Administrative/Other expenses
62
Note 5
Exploration expenses
64
Note 6
Financial income and expenses
65
Note 7
Income taxes
66
Note 8
Intangible assets
69
Note 9
Property, plant and equipment
72
Note 10
Impairments
75
Note 11
Business combinations
79
Note 12
Joint venture
83
Note 13
Inventory
84
Note 14
Other non-current receivables/Trade and other receivables
85
Note 15
Cash and cash equivalents
86
Note 16
Equity
87
Note 17
Hybrid capital
89
Note 18
Interest-bearing liabilities
90
Note 19
Lease liabilities
92
Note 20
Asset retirement obligations
93
Note 21
Other liabilities
94
Note 22
Trade and other payables
94
Note 23
Financial instruments
95
Note 24
Commitments and contingencies
100
Note 25
Earnings per share
101
Note 26
Group companies and other companies
102
Note 27
Oil and gas reserves (unaudited)
103
Note 28
Oil and gas license portfolio
106
Note 29
Significant events after the reporting date
109
Parent company accounts
Income statement
111
Balance sheet
111
Cash flow statement
113
Note disclosures
114
Country-by-Country report
126
Auditor’s report
127
Alternative performance measures
138
Glossary and definitions
141
Consolidated accounts
DNO Annual Report 2025 51
Consolidated statements of comprehensive income
1 January - 31 December
USD million
Note
2025
2024
Revenues
2, 3
1,474.0
666.8
Lifting costs
-376.4
-175.5
Tariff and transportation expenses
-181.5
-49.4
Movement in overlift/underlift
86.0
2.1
Depreciation, depletion and amortization
8, 9
-403.4
-184.1
Cost of goods sold
-875.3
-406.9
Gross profit
598.7
259.9
Share of profit/loss from Joint Venture
12
7.7
3.3
Other operating income/expenses
18.8
-1.6
Administrative expenses
4
-48.6
-23.5
Impairment/reversal oil and gas assets
10
56.4
-146.0
Exploration expenses
5
-136.5
-88.9
Gain on license transactions
21
16.2
3.0
Operating profit/loss
512.8
6.1
Financial income
6
37.7
47.3
Financial expenses
6
-153.1
-66.7
Profit/loss before income tax
397.4
-13.3
Tax income/expense
7
-422.6
-13.8
Net profit/loss
-25.2
-27.1
Currency translation differences
29.8
-25.8
Other comprehensive income
29.8
-25.8
Total comprehensive income, net of tax
4.6
-52.9
Net profit/loss attributable to:
Dividends paid on hybrid capital
17
21.5
-
Equity holders of the parent
-46.7
-27.1
Net profit/loss
-25.2
-27.1
Total comprehensive income attributable to:
Dividends paid on hybrid capital
17
21.5
-
Equity holders of the parent
-16.9
-52.9
Total comprehensive income, net of tax
4.6
-52.9
Weighted average number of shares outstanding (millions)
975.00
975.00
Earnings per share, basic (USD per share)
25
-0.05
-0.03
Earnings per share, diluted (USD per share)
25
-0.05
-0.03
Consolidated accounts
52 DNO Annual Report 2025
Consolidated statements of financial position
Years ended 31 December
USD million
Note
2025
2024
ASSETS
Non-current assets
Deferred tax assets
7
8.7
39.6
Goodwill
8
1,360.6
102.1
Other intangible assets
8
296.9
228.5
Property, plant and equipment
9
3,029.1
1,109.4
Investment in Joint Venture
12
38.1
48.8
Other non-current receivables
14
120.0
98.2
Other assets
4.5
-
Total non-current assets
4,857.9
1,626.6
Current assets
Inventories
13
105.7
74.8
Trade and other receivables
14
569.6
338.1
Derivatives
11.5
-
Tax receivables
7
-
27.5
Cash and cash equivalents
15
453.7
899.0
Total current assets
1,140.4
1,339.5
TOTAL ASSETS
5,998.3
2,966.1
EQUITY AND LIABILITIES
Equity
Equity
16
1,328.5
1,080.0
Total equity
1,328.5
1,080.0
Non-current liabilities
Deferred tax liabilities
7
1,215.4
257.2
Interest-bearing liabilities
18
989.1
790.5
Lease liabilities
19
21.5
9.7
Asset retirement obligations
20
1,169.0
467.9
Other liabilities
21
44.4
6.9
Total non-current liabilities
3,439.4
1,532.2
Current liabilities
Trade and other payables
22
462.1
323.7
Income taxes payable
7
320.3
-
Current interest-bearing liabilities
18
339.4
-
Derivatives
5.6
-
Current lease liabilities
19
15.9
3.1
Asset retirement obligations
20
77.0
12.9
Other liabilities
21
10.1
14.2
Total current liabilities
1,230.4
353.9
Total liabilities
4,669.8
1,886.1
TOTAL EQUITY AND LIABILITIES
5,998.3
2,966.1
Consolidated accounts
DNO Annual Report 2025 53
Bijan Mossavar-Rahmani
Executive Chairman
Oslo, 11 March 2026
Gunnar Hirsti
Deputy Chairman
Elin Karfjell
Director
Anita Marie Hjerkinn Aarnæs
Director
Najmedin Meshkati
Director
Grethe Kristin Moen
Director
Ferris J. Hussein
Director
Christopher Spencer
Managing Director
Consolidated accounts
54 DNO Annual Report 2025
Consolidated cash flow statements
1 January - 31 December
USD million
Note
2025
2024
Operating activities
Profit/loss before income tax
397.4
-13.3
Adjustments to add/deduct (-) non-cash items:
Exploration cost previously capitalized carried to cost
5
62.8
37.7
Depreciation, depletion and amortization
8, 9
403.4
184.1
Impairment/reversal oil and gas assets
10
-56.4
146.0
Loss/gain (-) on PP&E
9
-16.2
-3.0
Time value effects receivables
6, 14
14.8
-11.4
Share of profit/loss in Joint Venture
12
-7.7
-3.3
Amortization of borrowing issue costs
6, 18
10.1
3.8
Accretion expense on ARO provisions
6, 21
46.8
20.4
Interest expense
6
69.3
54.3
Interest income
6
-35.1
-38.1
Other
-4.7
-8.3
Changes in working capital items and provisions:
- Inventories
13
5.3
6.0
- Trade and other receivables
14
127.4
-46.1
- Trade and other payables
22
-77.5
97.4
- Provisions for other liabilities and charges
21
-9.8
6.9
Cash generated from operations
930.0
433.0
Net income taxes paid/tax refund received
-263.7
-0.8
Interest received
30.0
34.6
Interest paid
-105.8
-53.7
Net cash from/used in operating activities
590.6
413.0
Investing activities
Purchases of intangible assets
-130.3
-87.2
Purchases of tangible assets
-487.7
-199.8
Payments for decommissioning
-33.2
-4.9
Acquisition of subsidiary, net of cash acquired
11
-203.4
-
Proceeds/Payments (-) license transactions
11
7.4
-84.8
Equity contribution into Joint Venture
12
-10.5
-9.4
Dividends from Joint Venture
12
27.2
31.8
Net cash from/used in investing activities
-830.6
-354.2
Financing activities
Proceeds from borrowings
18
1,383.1
365.0
Proceeds from hybrid bond
17
400.0
-
Repayment of borrowings
18
-1,812.7
-131.2
Payment of debt issue costs
18
-11.6
-5.6
Payment of hybrid bond issue costs
17
-6.4
-
Paid dividend
16
-129.7
-102.5
Paid dividend hybrid bond owners
17
-21.5
-
Payments of lease liabilities
-3.5
-2.5
Net cash from/used in financing activities
-202.2
123.2
Net increase/decrease in cash and cash equivalents
-442.2
182.1
Cash and cash equivalents at beginning of the period
899.0
718.8
Exchange gain/losses on cash and cash equivalents
-3.1
-1.9
Cash and cash equivalents at end of the period
15
453.7
899.0
Of which restricted cash
15
17.5
17.5
Consolidated accounts
DNO Annual Report 2025 55
Consolidated statements of changes in equity
Other
comprehensive
income
Currency
Share
Share
Hybrid
translation
Retained
Total
USD million
capital
premium
capital
difference
earnings
equity
Total shareholders' equity as of 31 December 2023
32.9
343.6
-
-39.9
898.3
1,234.8
Currency translation differences
-
-
-
-25.8
-
-25.8
Other comprehensive income
-
-
-
-25.8
-
-25.8
Profit/loss for the period
-
-
-
-
-27.1
-27.1
Total comprehensive income
-
-
-
-25.8
-27.1
-52.9
Payment of dividend
-
-
-
-
-101.9
-101.9
Transactions with shareholders
-
-
-
-
-101.9
-101.9
Total shareholders' equity as of 31 December 2024
32.9
343.6
-
-65.7
769.3
1,080.0
Other
comprehensive
income
Currency
Share
Share
Hybrid
translation
Retained
Total
USD million
capital
premium
capital
difference
earnings
equity
Total shareholders' equity as of 31 December 2024
32.9
343.6
-
-65.7
769.3
1,080.0
Currency translation differences
-
-
-
29.8
-
29.8
Other comprehensive income
-
-
-
29.8
-
29.8
Profit/loss for the period
-
-
21.5
-
-46.7
-25.2
Total comprehensive income
-
-
21.5
29.8
-46.7
4.6
Hybrid bond issue
-
-
393.5
-
-
393.5
Payment of dividend
-
-
-21.5
-
-128.2
-149.7
Transactions with shareholders/hybrid capital owners
-
-
372.0
-
-128.2
243.8
Total shareholders' equity as of 31 December 2025
32.9
343.6
393.5
-35.9
594.5
1,328.5
Consolidated accounts
56 DNO Annual Report 2025
Note 1
Accounting principles
■ Principal activities and corporate information
The principal activities of the Group are international oil and gas
exploration, development and production operations. DNO’s
activities are mainly undertaken in the Middle East, North Sea and
West Africa.
DNO ASA is a Norwegian public limited liability company
organized and existing under the laws of Norway pursuant to the
Norwegian Public Limited Liability Companies Act (Norwegian:
Allmennaksjeloven). The Company was incorporated on 6 August
1971 and its registration number is 921 526 121. The shares in
the Company have been listed on the Oslo Stock Exchange since
1981, currently under the ticker DNO. The Company's registered
office is located at Dokkveien 1, 0250 Oslo, Norway.
■ Statement of compliance
The consolidated financial statements of DNO ASA have been
prepared in accordance with IFRS® Accounting Standards as
adopted by the EU and additional disclosure requirements in the
Norwegian Accounting Act, effective as of 31 December 2025.
The consolidated financial statements were approved by the
Board of Directors on 11 March 2026.
■ Basis for preparation
The consolidated financial statements have been prepared on a
historical cost basis. As permitted by International Accounting
Standard (IAS) 1 Presentation of Financial Statements and in
conformity with industry practice, the expenses in the
consolidated statements of comprehensive income are presented
as a combination of nature and function as this gives the most
relevant and reliable presentation for the Group.
Due to rounding, the figures in one or more rows or columns
included in the financial statements and notes may not add up to
the subtotals or totals of that row or column.
■ Significant accounting estimates and assumptions
The preparation of the Group’s financial statements requires
management to make judgments, estimates and assumptions that
affect the reported amounts of revenues and expenses, assets
and liabilities, the accompanying disclosures and the disclosure of
contingent liabilities at the reporting date. Estimates and
assumptions are based on management’s best knowledge and
experience and various other factors that are believed to be
reasonable under the circumstances. Uncertainty about these
estimates and assumptions could result in outcomes that require
a material adjustment to the carrying amount of assets or
liabilities affected in future periods.
The key assumptions concerning the future and other key sources
of estimation uncertainty at the reporting date that have a
significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are
described in the relevant notes throughout this report, see below
for references to notes. The Group based its assumptions and
estimates on parameters available when the Group financial
statements were prepared. However, existing circumstances and
assumptions about future developments may change due to
market changes or circumstances arising beyond the control of
the Group. Such changes are reflected in the assumptions in the
period when they occur.
■ Estimates and assumptions
The key assumptions and key sources of estimation uncertainty
for the Group are described in each of the following notes:
• Entitlement risk associated with operating in Kurdistan (Note 3
and 14);
• Impairment assessment of capitalized exploration expenditures
(Note 8);
• Impairment and impairment reversal of oil and gas assets (Note
10);
• Application of the acquisition method for business combinations
(Note 11);
• Classification of hybrid capital (Note 17);
• Estimation of the cost for decommissioning (Note 20);
• Estimate of reserves and resources (Note 27).
■ Group accounting and consolidation principles
Basis for consolidation
The consolidated financial statements include the financial
statements of DNO ASA and its subsidiaries. The Company
currently holds a 100 percent interest in all of its subsidiaries.
The acquisition of Sval Energi Group AS, including its
subsidiaries, was completed in June 2025 and has been
consolidated in the Group's financial statements from 1 June
2025.
■ Functional and presentational currency
The consolidated financial statements are presented in USD,
which is also DNO ASA’s functional currency and presentation
currency.
Statements of comprehensive income and statements of cash
flows of subsidiaries and joint operations that have a functional
currency different from the parent company are translated into the
presentation currency at average exchange rates each month.
Statements of financial position items are translated using the
exchange rate at the reporting date, with the translation
differences taken directly to other comprehensive income.
■ Interest in jointly controlled operations (assets)
A joint arrangement is present when DNO holds a long-term
interest which is jointly controlled by DNO and one or more other
parties under a contractual arrangement in which decisions about
the relevant activities require the unanimous consent of the
parties sharing control. Such joint arrangements are classified as
either joint operations or joint ventures.
Joint operations
DNO recognizes its investments in joint operations by reporting its
share of related revenues, expenses, assets, liabilities and cash
flows under the respective items in the Group's financial
statements.
Joint ventures
The Group’s investments in a joint venture are accounted for
using the equity method in accordance with IAS 28 Investments in
Associates and Joint Ventures.
Consolidated accounts
DNO Annual Report 2025 57
■ License acquisitions, farm-in/out and swaps
Individual assessment is made whether the acquisition of an oil
and gas license should be treated as a business combination or
as an asset purchase. Generally, purchase of a license in
development or production phase is regarded as a business
combination, while purchase of a license in the exploration phase
is regarded as an asset purchase.
A farm-in or farm-out of an oil and gas license takes place when
the owner of a working interest (the farmor) transfers all or a
portion of its working interest to another party (the farmee) in
return for an agreed upon consideration and/or action, such as
conducting subsurface studies, drilling wells or developing the
asset. Any cash consideration received directly from the farmee is
credited against costs previously capitalized in relation to the
whole interest with any excess accounted for by the farmor as a
gain on disposal.
In the development or production phase, a farm-in/farm-out
agreement will be treated as a transaction recorded at fair value
as represented by the costs carried by the farmee. Any gain or
loss arising from the farm-in/farm-out is recognized in the
statements of comprehensive income.
License swaps are measured at the fair value of the asset being
exchanged, unless the transaction lacks commercial substance,
or neither the fair value of the asset received, nor divested, can
be reliably measured. In the exploration phase, the Group
normally recognizes license swaps based on historical cost basis.
■ Changes to accounting policies
The accounting policies adopted are consistent with those of the
previous financial year.
Other amendments
Other amendments and interpretations may apply for the first time
in 2025 or in subsequent periods but are not considered to have
any material impact on the Group’s financial statements.
■ Upcoming changes to accounting policies
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 is effective from annual reporting periods beginning on or
after 1 January 2027 and will replace IAS 1 Presentation of
Financial Statements.
IFRS 18 introduces new requirements to classify all income and
expenses included in the statements of comprehensive income
into one of five categories (operating, investing, financing, income
taxes and discontinued operations) and to present two new
mandatory subtotals (operating profit/loss and profit/loss before
financing and income taxes). The new subtotal Operating
profit/loss does not fully align with the current subtotal. We
expect, among other things, that Share of profit/loss from Joint
Ventures and Gains on license transactions will be excluded. The
standard also introduces some changes to the cash flow
statement, including classifying interest paid as a financing
activity and interest received as an investing activity.
Further, IFRS 18 introduces definition of and disclosure
requirements for management-defined performance measures
(MPMs), a set of financial measures that are partly overlapping
with alternative performance measures (APMs) which are
currently disclosed and reconciled outside the financial
statements.
IFRS 18 also include enhanced guidance for aggregation and
disaggregation of information across all the primary financial
statements and the accompanying notes.
The Group has made significant progress in assessing the impact
of IFRS 18, with particular focus on the anticipated changes to the
structure of the statements of comprehensive income and the
cash flow statements. The assessment also encompasses a
review of which MPMs to present in the future and how they will
be defined and presented. In addition, preparatory work is
underway to ensure that the Group will be positioned to present
comparable figures for 2026 in accordance with the new
requirements.
Consolidated accounts
58 DNO Annual Report 2025
Note 2
Segment information
Accounting policies
Segment information
DNO’s operating segments correspond to its reportable segments. The Company identifies and reports its segments based on the
nature of the risk and return within its business and by the geographical location of the Group’s assets and operations. The segment
information is provided to senior management and the Board of Directors who are considered to collectively be the Chief Operating
Decision Maker and is used as the basis for allocation of resources and decision making.
The accounting policies of the reporting segments equal those described in these consolidated financial statements. Transfer pricing
between the segments and companies is set using the arm’s length principle in a manner similar to transactions with third parties and
are eliminated at the consolidated level. Segment profit/loss includes profit/loss from inter-segment sales.
The Company reports the following three operating segments: Kurdistan, North Sea (which includes DNO’s oil and gas activities in
Norway and the UK) and West Africa (which represents DNO’s equity accounted investment in Côte d'Ivoire, see Note 12). Remaining
operating segments are included in the other category based on a materiality assessment. The country-by-country reporting for
companies in extractive industries in line with the Norwegian Accounting Act can be found on page 126 of this report.
USD millionTotalUn-Full-year endingWestreportingallocated/Total31 December 2025NoteKurdistanNorth SeaAfricaOthersegmentseliminatedGroupCOMPREHENSIVE INCOME INFORMATIONRevenues3211.21,262.8--1,474.0-1,474.0Lifting costs-102.1-274.9---377.00.6-376.4Tariff and transportation expenses--181.5---181.5--181.5Movement in overlift/underlift14, 22-86.0--86.0-86.0Depreciation, depletion and amortization9-100.5-299.7---400.2-3.2-403.4Cost of goods sold-202.6-670.1---872.7-2.6-875.3Gross profit8.6592.7--601.2-2.6598.7Share of profit/loss from Joint Venture12--7.7-7.7-7.7Other operating income/expenses4-1.10.2-19.618.70.118.8Administrative expenses 4-1.2-23.9--1.7-26.7-21.8-48.6Impairment/reversal of oil and gas assets10-56.4--56.4-56.4Exploration expenses5--136.5---136.5--136.5Gain on license transactions20-16.2--16.2-16.2Operating profit/loss6.3505.27.718.0537.1-24.3512.8Net financial income/expense6-5.7-59.3-2.9-62.0-53.3-115.4Tax income/expense7--422.5---422.5-0.1-422.6Net profit/loss 0.723.37.720.952.5-77.7-25.2FINANCIAL POSITION INFORMATIONNon-current assets598.54,211.138.1-4,847.710.24,857.9Current assets203.9621.1-1.3826.2314.21,140.4Total assets802.44,832.138.11.35,673.9324.45,998.3Non-current liabilities73.72,358.0--2,431.71,007.63,439.4Current liabilities150.81,047.9-7.01,205.724.71,230.4Total liabilities224.53,405.9-7.03,637.51,032.34,669.8
Consolidated accounts
DNO Annual Report 2025 59
USD millionTotalUn-Full-year endingWestreportingallocated/Total31 December 2024NoteKurdistanNorth SeaAfricaOthersegmentseliminatedGroupCOMPREHENSIVE INCOME INFORMATIONRevenues3230.8436.0--666.8-666.8Lifting costs-83.0-93.2---176.10.7-175.5Tariff and transportation expenses--49.4---49.4--49.4Movement in overlift/underlift14, 22-2.1--2.1-2.1Depreciation, depletion and amortization9-116.7-64.1---180.8-3.4-184.1Cost of goods sold-199.7-204.5---404.2-2.7-406.9Gross profit31.1231.5--262.6-2.7259.9Share of profit/loss from Joint Venture12--3.3-3.3-3.3Other operating income/expenses4-1.40.6--0.9-1.70.1-1.6Administrative expenses 4-0.5-10.6--1.5-12.7-10.8-23.5Impairment of oil and gas assets10-89.0-57.0---146.0--146.0Exploration expenses5--88.9---88.9--88.9Gain on license transactions-3.0--3.0-3.0Operating profit/loss-59.878.43.3-2.419.5-13.46.1Net financial income/expense611.6-10.31.51.24.0-23.4-19.4Tax income/expense7--13.8---13.8--13.8Net profit/loss -48.254.34.8-1.29.7-36.8-27.1FINANCIAL POSITION INFORMATIONNon-current assets663.1902.548.8-1,614.412.21,626.6Current assets237.4283.2-1.3521.8817.71,339.5Total assets900.51,185.748.81.32,136.3829.92,966.1Non-current liabilities71.4705.1--776.5755.71,532.2Current liabilities142.3177.4-8.1327.826.1353.9Total liabilities213.8882.4-8.11,104.3781.81,886.1
Consolidated accounts
60 DNO Annual Report 2025
Note 3
Revenues
Accounting policies
Revenues
Revenues presented in the consolidated statements of comprehensive income consist of Revenue from contracts with customers.
Revenue from contracts with customers is recognized when the customer obtains control of the oil and gas, which normally will be
when title passes at the point of delivery, based on the contractual terms of the agreements.
In general, the revenues from the Group’s production of oil and gas are recognized on the basis of volumes lifted and sold to
customers during the period (the sales method).
Tariff income from processing of oil and gas is related to the North Sea segment and is recognized as earned.
Revenue recognition in Kurdistan
In 2025 and 2024, revenues in Kurdistan were generated from local sales and recognized on the basis of volumes lifted and sold to
customers during the period. Local deliveries are prepaid by the buyers directly to DNO.
Entitlement risk associated with operating in Kurdistan
DNO has interests in two licenses in Kurdistan through Production Sharing Contracts (PSCs) and has based its entitlement
calculations on the terms of these PSCs.
On 15 February 2022, the Company learned from public reports that the Federal Supreme Court of Iraq (FSCI) had inter alia ruled
that the Kurdistan Oil and Gas Law No. 27/2007 (KOGL) was unconstitutional, that the KRG was to hand over all oil production from
areas located in Kurdistan to the Federal Government of Iraq (FGI) and that the FGI had the right to pursue the nullity of the oil
contracts concluded by the KRG. DNO was not a party to these proceedings. Media thereafter reported that on 4 July 2022, the
Karkh commercial court in Baghdad ruled that PSCs signed between the KRG and four international oil companies (including DNO)
should be voided. Similar cases involving four other international oil companies were reported over the ensuing weeks. The KRG
reportedly filed third party objections to these rulings (including those understood to concern DNO) on 21 August 2022. The
Company learnt, again from media reports, that on 18 December 2024 the Karkh Court of Appeal ruled in favor of inter alia the KRG,
confirming that the PSCs in question were valid. Thereafter, media reported that the FGI appealed the rulings of the Karkh Court of
Appeal to the Court of Cassation and that the Court of Cassation dismissed the appeal on 22 January 2025 and thus confirmed that
the PSCs are valid. On 23 April 2025, there were reports in the media that during a meeting on 20 April 2025, Federal Ministry of Oil
officials conceded that federal courts have effectively ruled that Kurdistan PSCs held by international oil companies (IOCs) are valid,
or at least, cannot be invalidated.
In 2014, the FGI initiated an arbitration case against the Government of Türkiye and its state-owned pipeline operator BOTAS
relating to the ITP and transportation of Kurdish oil. The ruling of the arbitration tribunal in that matter became publicly known on or
around 24 March 2023. The ruling was in parts in favor of Iraq. The ITP closed for export of Kurdish oil on 25 March 2023. In October
2023 Türkiye announced that the ITP was ready to resume operations. However, the ITP remained closed for export of Kurdish oil
until 27 September 2025, reportedly due to continued disagreements between the FGI and the KRG on inter alia export of Kurdish
oil.
With effect from 17 February 2025, the 2023-2025 Federal Iraqi Budget Law (Budget Law) was amended. The amendment
addressed some issues of disagreement between the FGI and the KRG and effectively facilitated the resumption of export of Kurdish
oil produced under the Kurdistan PSCs. On 26 September 2025, the Company announced that it had been instructed to prepare for
commencement of oil exports through ITP on 27 September 2025, following interim agreements reached between the FGI, the KRG
and a group of IOCs (Interim Tri-Party Export Arrangement). The Company stated that it would deliver the KRG’s share of sales from
the Tawke license for export, while the Tawke Contractors’ share would continue to be sold to local buyers under existing contracts.
On 27 September 2025, export of Kurdish oil through the ITP resumed. The Company notes that the term of the Interim Tri-Party
Export Arrangement ended at yearend 2025. Payment levels are reportedly to be adjusted in 2026 based on an evaluation of
“commercial models and contracts” by a Baghdad-designated consultant. On 7 January 2026, there were reports that the
arrangement had been extended to 31 March 2026 and that the SOMO had signed a contract with a consulting firm to carry out the
evaluation.
To ensure steady and predictable cash in support of new investments to raise production, DNO continued post export resumption to
sell its entitlement oil to local buyers under existing contracts at a price in the low USD 30s per barrel on a cash-and-carry basis.
These buyers, in turn, delivered the oil to the export pipeline under arrangements negotiated with Kurdistan.
Consolidated accounts
DNO Annual Report 2025 61
1 January - 31 December Kurdistan North SeaTotalUSD million202520242025202420252024Sale of oil211.2230.8590.7265.2801.9496.0Sale of gas--576.7138.5576.7138.5Sale of natural gas liquids (NGL)--60.026.960.026.9Tariff income--18.65.418.65.4Total revenues from contracts with customers211.2230.81,246.0436.01,457.3666.8Gain/loss on derivatives oil hedging instruments--16.7-16.7-Total revenues211.2230.81,262.8436.01,474.0666.8Sale of oil (bopd)17,89618,17223,4048,68041,30126,852Sale of gas (boepd)--23,8205,49623,8205,496Sale of natural gas liquids (NGL) (boepd)--4,0071,5714,0071,571Total sales volume (boepd)17,89618,17251,23115,74669,12833,918
In June 2025, DNO acquired Sval Energi, significantly increasing its North Sea production and revenue.
In 2025 and 2024, DNO sold oil from the Tawke license to local trading companies in Kurdistan. The export pipeline reopened in
September 2025, but the Company has continued with sales to local buyers. Operations in 2025 were temporarily disrupted by drone
strikes on the Tawke and Peshkabir fields in July, before resuming in August.
Due to the disagreements between the FGI and the KRG, economic conditions in Kurdistan and limited oil export channels, DNO has
historically faced constraints in fully monetizing the oil it produces in Kurdistan. There is no guarantee that oil can be exported or sold
locally in sufficient quantities or at prices required to sustain DNO’s operations and investment plans or that the Group will promptly
receive its full entitlement payments for any oil it delivers. Export sales have not always followed the PSC terms. Furthermore, there
has also previously been uncertainty related to receipt of payments for oil sold to the KRG but notwithstanding sometimes lengthy
delays, payments have ultimately been received by DNO.
At yearend 2025, the Company was owed a total of USD 291.5 million, excluding interest, by the KRG mainly related to export oil
sales to the KRG for the months October 2022 through March 2023. These receivables are past due (see Note 14). The KRG has
repeatedly stated that it is and remains committed to its PSCs.
Timing of payments for previous oil sales by the KRG is uncertain and is influenced by several factors, including the overall financial
and political environment in Kurdistan. The Company continues to engage with the KRG regarding recovery of the arrears and
payment terms and conditions for its possible participation in future oil exports. DNO believes the restart of pipeline exports
represents an important step towards normalizing the operating environment and aims to access export markets or export prices
later in the year. Historically, DNO has successfully recovered overdue receivables, including through the 2017 Receivable
Settlement Agreement and the 2021 arrangements implemented following the Covid-related payment suspension.
The Company’s PSCs include rights for the host government to audit the PSC accounts (PSC audits) and there is uncertainty
relating to the outcome and impact of any such audit on the Company’s recovery of costs and financial results. During 2024 in
Kurdistan, PSC audits were carried out with respect to the Baeshiqa 2018-2019 Accounts and the Tawke 2021 Accounts. In 2025,
PSC audits on the Baeshiqa 2020-2022 Accounts and the Tawke 2023 Accounts were initiated.
Consolidated accounts
62 DNO Annual Report 2025
Note 4
Administrative/Other expenses
Accounting policies
Pensions and share-based payments
Pensions
The Group’s pension obligations in Norway are limited to certain defined contribution plans which are paid to pension insurance
plans and charged to profit or loss in the period in which they are incurred. Once the contributions are paid there are no further
obligations.
Share-based payments
Cash-settled share-based payments are recognized in the income statement as expenses during the vesting period and as a liability.
The liability is measured at fair value and revaluated using the Black & Scholes pricing model at each balance sheet date and at the
date of settlement, with any change in the fair value recognized in the income statement for the period.
1 January - 31 DecemberUSD million20252024Salaries, bonuses, etc.-75.9-50.3Employer's payroll tax expenses-9.1-6.8Pensions-5.8-4.2Other personnel costs-5.8-7.0General and administration expenses-53.9-27.7Reallocation of salaries and social expenses to lifting costs and exploration costs/PP&E and intangible assets101.872.5Total administrative expenses-48.6-23.5Other expenses-0.2-2.5Total other operating expenses-0.2-2.5
Salaries and social expenses directly attributable to license activities are reclassified to lifting costs and exploration costs, or tangible
assets and capitalized exploration.
DNO has a defined contribution scheme for its Norway-based employees, with USD 5.8 million expensed in 2025 (USD 4.2 million in
2024). The Group’s obligations are limited to the annual pension contributions. DNO meets the Norwegian legal requirements for
mandatory occupational pension (Norwegian: Obligatorisk tjenestepensjon).
At yearend 2025, the Company’s liability for synthetic shares as part of other variable remuneration amounted to USD 8.8 million (USD
8.4 million at yearend 2024). For more information about remuneration to senior management, see Note 3 in the parent company
accounts.
Movement in synthetic Company shares during the year1 January - 31 DecemberNumber of shares20252024Outstanding as of 1 January12,997,19110,829,494Granted during the year3,339,6453,553,754Forfeited/reversed during the year407,004809,584Settled during the year7,565,691576,473Outstanding as of 31 December8,364,14112,997,191Unrestricted as of 31 December836,911690,043Weighted average remaining contractual life for the synthetic shares (years)2.892.12Weighted average settlement price for synthetic shares settled during the year (NOK)13.1210.66Settlement price for synthetic shares at the end of the year (NOK)15.9010.47
Consolidated accounts
DNO Annual Report 2025 63
Remuneration to Board of Directors and senior management1 January - 31 DecemberUSD million20252024Managing DirectorSalary-0.70-0.65Bonus-0.16-0.12Pension-0.02-0.02Other remuneration-1.38-0.13Remuneration to Managing Director-2.26-0.92Other senior managementSalary-3.06-3.59Bonus-0.57-0.47Pension-0.12-0.17Other remuneration-2.08-0.79Remuneration to other senior management-5.84-5.02Total remuneration to senior management-8.10-5.95Number of managers included911Total remuneration to Board of Directors-2.98-1.59Total remuneration to Board of Directors and senior management-11.08-7.54
Upon completion of the acquisition of Sval Energi, the Company announced that Halvor Engebretsen, Sval Energi’s Chief Executive
Officer, would lead the enlarged North Sea business. Elisabeth Femsteinevik was transferred to another managerial role in the business
unit. A remuneration of USD 0.45 million (not included in the above table) was in 2025 paid to Elisabeth Femsteinevik.
On 24 September 2025, the Company announced the appointment of Birgitte Wendelbo Johansen as Chief Financial Officer, as part of
a planned management transition. In 2025, a total remuneration of USD 1.05 million (not included in the table above) was paid to
Haakon Sandborg, the former Chief Financial Officer, which included a severance component. An additional severance payment of USD
0.85 million was made in January 2026.
Shares and options held by Board of Directors and senior managementYears ended 31 December20252024Directors and senior managementShares Shares Bijan Mossavar-Rahmani, Executive Chairman*125,683,241125,683,241Gunnar Hirsti, Deputy Chairman (Hirsti Invest AS)350,000350,000Elin Karfjell, Director (Elika AS)33,00033,000Anita Marie Hjerkinn Aarnæs, Director--Najmedin Meshkati, Director--Grethe Kristin Moen, Director--Ferris J. Hussein, Director--Chris Spencer, Managing Director (Chris's Corporation AS)32,00032,000Erlend Wollan Einum, Chief Business Development Officer-Halvor Engebretsen, Managing Director DNO Norge AS-Tonje Pareli Gormley, Group General Counsel--Sameh Hanna, General Manager Middle East--Linn Hoel, Chief Commercial Officer--Birgitte Wendelbo Johansen, Chief Financial Officer--Geir Arne Skau, Chief Human Resources and Corporate Services Officer85,00075,000Erling Moen Synnes, Chief Information Officer--* Bijan Mossavar-Rahmani held interests in the Company through nominee accounts held by Goldman Sachs & Co. LLC, representing 12.89 percent of the total number of outstanding Company shares at yearend 2025.
Senior management and the members of the Board of Directors have been awarded synthetic shares during the year as part of their
variable remuneration, see Note 3 in the parent company accounts.
Consolidated accounts
64 DNO Annual Report 2025
Auditor fees1 January - 31 DecemberUSD million (excluding VAT)2025Auditor fees-1.13Other audit and related services-Tax advisory services-0.06Other advisory services-0.31Total auditor fees-1.50
Note 5
Exploration expenses
Accounting policies
Exploration expenses
The Group uses the successful efforts method to account for its exploration and evaluation assets, see Note 8.
All exploration costs (including purchase of seismic, geological and geophysical costs and general and administrative costs), except
for acquisition costs of licenses and drilling costs of exploration wells, are expensed as incurred.
1 January - 31 DecemberUSD million20252024Exploration expenses (G&G and field surveys)-26.9-16.5Seismic costs-19.0-16.5Exploration expenses capitalized in previous years carried to cost-2.6-0.8Exploration expenses capitalized during the year carried to cost-60.2-36.8Other exploration expenses-27.7-18.3Total exploration expenses-136.5-88.9
Exploration expenses in 2025 were related to exploration activities in the North Sea, including purchase of seismic data and expensing
of exploration wells, mainly Horatio and Page wells. Exploration expenses in 2024 were related to exploration activities in the North Sea,
including expensing of exploration wells (Falstaff prospect in the Falstaff/Othello well and the Angel and Hummer wells).
Consolidated accounts
DNO Annual Report 2025 65
Note 6
Financial income and expenses
1 January - 31 DecemberUSD millionNote20252024Interest income35.138.1Currency exchange gains recognized in the income statement (net)1.79.2Other financial income0.9-Financial income37.747.3Interest expenses-104.9-54.3Interest expenses (IFRS 16)-1.8-1.2Capitalized interest935.64.1Time value effect trade debtors14-14.811.4Amortization of borrowing issue costs-10.1-3.8Accretion expense ARO (unwinding of discount rate)20-46.8-20.4Premium expense bonds-8.3-Other financial expenses-1.9-2.5Financial expenses-153.1-66.7Net financial income/expenses-115.4-19.4
Accounting policies
Financial income and expenses
Accretion expenses from unwinding of the discount related to the asset retirement obligation (ARO) provision and lease liability are
further detailed in Note 19 and Note 20. Accounting effects from IFRS 9 (expected credit loss model) assessment related to the KRG
arrears are further detailed in Note 14.
Consolidated accounts
66 DNO Annual Report 2025
Note 7
Income taxes
Accounting policies
Income taxes
Tax income/expense consists of taxes receivable/payable and changes in deferred taxes. Taxes receivable/payable are based on
the amount receivable from or payable to the tax authorities. Deferred tax liability is calculated on all taxable temporary differences
unless there is a recognition exception. A deferred tax asset is recognized only to the extent that it is probable that the future taxable
income will be available against which the asset can be utilized and is reassessed at each reporting date. Deferred tax assets and
deferred tax liabilities are recognized at their nominal value and classified as non-current assets/liabilities in the statements of
financial position. Tax payable and deferred tax are recognized directly in the equity to the extent that they relate to items charged
directly to equity.
Estimation uncertainty
Income tax expense, tax payables/receivables and deferred taxes are based on management’s interpretation of applicable laws and
regulations. Judgement is required when recognizing and measuring uncertain tax positions.
Notional corporate income tax/deferred taxation in Kurdistan
DNO’s PSCs in Kurdistan provide that the corporate income tax to which the contractor is subject is deemed to have been paid to the
government as part of the payment of profit oil to the government or its representatives. Current and deferred taxation arising from
such notional corporate income tax is not calculated for Kurdistan, as there is uncertainty related to the tax laws of Kurdistan and
there is currently no well-established tax regime for international oil companies. As such, it has not been possible to reliably measure
such notional corporate income taxes deemed to have been paid on behalf of the Company’s subsidiary, DNO Iraq AS. For
accounting purposes, if such notional income tax is to be classified as income tax in accordance with IAS 12 Income Taxes, the
Group would present this as an income tax expense with a corresponding increase in revenues. Furthermore, it would be assessed
whether any deferred tax asset or liability is required to be recognized equal to the difference between book values and the tax
values of the qualifying assets and liabilities, multiplied by the applicable tax rate.
Tax income/expense1 January - 31 DecemberUSD million20252024Changes in deferred taxes-404.8-57.9Income taxes receivable/payable-17.744.1Total tax income/expense (-)-422.6-13.8Income tax receivable/payableYears ended 31 DecemberUSD million20252024Tax receivables-27.5Income taxes payable-189.3-Provision for uncertain tax positions-131.0-Net tax receivable/payable (-)-320.327.5
Consolidated accounts
DNO Annual Report 2025 67
The tax balances relate to the activities on the Norwegian Continental Shelf (NCS) and the UK Continental Shelf (UKCS).
During 2025, DNO paid net USD 263.7 million in taxes in Norway related to installments for estimated taxable profit for 2025 and final
tax assessment for 2024.
Provision for uncertain tax positions mainly relates to tax exposures arising from acquisitions previously completed by Sval Energi, for
which the original sellers have provided tax indemnities. A corresponding tax indemnity receivable of USD 128.8 million is recognized
under Trade and other receivables.
Reconciliation of tax income/expense1 January - 31 DecemberUSD million20252024Profit/loss before income tax397.4-13.3Expected income tax according to nominal tax rate in Norway, 22 percent4.928.1Expected income tax according to nominal petroleum tax rate in Norway, 78 percent-322.3-81.4Expected income tax according to nominal tax outside Norway-12.713.1Taxes paid in kind under PSCs--0.4Foreign exchange variations between functional and tax currency-12.1-11.9Adjustment of previous years-2.4-1.2Adjustment of deferred tax assets not recognized-5.963.3Change in previous years-4.0-0.1Other items including other permanent differences-68.2-25.0Change in tax rate-1.7Tax income/expense (-)-422.6-13.8Effective income tax rate106.3%-103.8%Taxes charged to equity--
Other items above consist mainly of permanent differences on impairments of goodwill which are not tax deductible, and permanent
differences on tax exempted profits/losses from upstream activities outside of Norway carried out by the Company’s Norwegian
subsidiaries. In 2025, the tax income expense was significantly increased as a result of the acquisition of Sval Energi. In 2024, the
recognition of deferred tax assets on tax losses carried forward mainly related to initial recognition of tax losses from the acquisition of
interest in the Arran field in the UK (USD 61.7 million) based on updated assessments of the Group’s ability to utilize those losses
against future taxable profits.
Financial statements are presented in USD, which is also the functional currency for most Group subsidiaries. However, under statutory
rules in the relevant jurisdictions, current taxes are calculated as if the local currency (e.g., NOK, GBP) was the functional currency.
Adjustments for currency gains/losses and the translation of monetary items can therefore significantly affect the calculated effective tax
rate.
Tax effects on temporary differencesYears ended 31 DecemberUSD million20252024Tangible assets-1,871.4-399.2Intangible assets (including capitalized exploration expenses)-220.5-166.8ARO provisions886.4298.2Losses carried forward196.9214.8Non-deductible interests carried forward24.923.0Other temporary differences0.92.7Net deferred tax assets/liabilities-982.7-27.3Valuation allowance-224.0-190.3Net deferred tax assets/liabilities (-)-1,206.8-217.6Recognized deferred tax assets8.739.6Recognized deferred tax liabilities-1,215.4-257.2
A valuation allowance was recognized relating to carried forward losses in Norway (ordinary tax regime, USD 114.5 million) and the UK
(USD 109.5 million) due to the uncertainty regarding future taxable profits.
Profits/losses by Norwegian companies from upstream activities outside of Norway are not taxable/deductible in Norway in accordance
with the General Tax Act, section 2-39. Under these rules, only certain financial income and expenses are taxable in Norway.
Consolidated accounts
68 DNO Annual Report 2025
There are no tax consequences attached to items recorded in other comprehensive income.
The following nominal tax rates apply in the jurisdictions where the subsidiaries of the Group are taxable: The ordinary tax regime in
Norway (22 percent), the NCS regime (78 percent), ordinary tax regime in the UK (25 percent), the UKCS regime (40 percent) and UAE
(15 percent). Additionally, in the UK, Energy Profits Levy (EPL) applies which is a 38 percent temporary levy on oil and gas ringfenced
profits, adjusted for decommissioning spend.
Reconciliation of change in deferred tax assets/liabilitiesYears ended 31 DecemberUSD million20252024Net deferred tax assets/liabilities at 1 January-217.6-192.4Change in deferred taxes in the income statement-408.1-57.9Deferred taxes related to business combinations and other transactions-536.19.9Currency and other movements-45.022.8Net deferred tax assets/liabilities (-) at 31 December-1,206.8-217.6Reconciliation of change in tax receivable/payableYears ended 31 DecemberUSD million20252024Net tax receivable/payable at 1 January27.5-4.6Tax receivable/payable related to transactions posted directly to balance sheet-606.7-12.2Tax receivable/payable in the income statement-14.544.1Tax payment/refund263.70.8Currency and other movements9.7-0.6Net tax receivable/payable (-) at 31 December-320.327.5
Pillar Two
DNO is subject to the OECD Pillar Two model rules and legislation to fully or partially implement these rules has been enacted in
Norway, the UK and the UAE. The first filing, due in 2026, relates to the 2024 financial year. While some uncertainty remains regarding
the detailed application of the new requirements, our current assessment is that the rules will not have a material impact on DNO’s
financial position or tax obligations for the 2024 and 2025 financial years.
Consolidated accounts
DNO Annual Report 2025 69
Note 8
Intangible assets
Accounting policies
Intangible assets
General
Intangible assets are stated at cost, less accumulated amortization and accumulated impairment charges. Intangible assets include
acquisition costs for oil and gas licenses, expenditures on the exploration for oil and gas resources, goodwill and other intangible
assets. Goodwill is not depreciated.
The useful lives of intangible assets are assessed as either finite or infinite. Amortization of intangible assets is based on the
expected useful economic life and assessed for impairment whenever there is an indication that the intangible asset might be
impaired. The impairment assessment of intangible assets with infinite lives is undertaken annually or more often if indicators exist.
Goodwill
Goodwill recognized by the Group is related to residual and technical goodwill. Residual goodwill is recognized as part of a business
combination as the difference between the acquisition cost and the fair value of the net assets acquired, representing synergies from
managing a larger portfolio of both acquired and existing fields on the NCS, including workforce. Technical goodwill is recognized
due to the requirement to recognize deferred tax for the difference between the assigned fair values and the related tax base.
Although not an IFRS term, “technical goodwill” is commonly used in the oil and gas industry to describe a category of goodwill
arising as an offsetting amount to deferred tax recognized in business combinations. There are no specific IFRS guidelines about the
allocation of technical goodwill and the Group has therefore applied the general guidelines for allocating goodwill. In general,
technical goodwill is allocated to a cash-generating unit (CGU) or group of CGUs that give rise to the technical goodwill, while any
residual goodwill may be allocated across all CGUs based on facts and circumstances in the business combination.
Exploration and evaluation assets
The Group uses the successful efforts method to account for its exploration and evaluation assets. Acquisition costs of licenses and
drilling costs of exploration wells are temporarily capitalized pending the determination of oil and gas resources. These costs include
directly attributable employee remuneration, materials and fuel used, rig costs and payments to contractors. Continued capitalization
of such costs is assessed for impairment at each reporting date. The main criterion is that there must be plans for future activity in
the license or that a development decision is expected in the near future. If reserves or resources are not found, or if discoveries are
assessed not technically or commercially recoverable, the costs of exploration wells and licenses are expensed. Furthermore, 3D
seismic costs over a discovery area are capitalized when the objective is to learn more about the reservoir and to support the
determination of new well locations within the discovery area.
Estimation uncertainty: Impairment assessment of capitalized exploration expenditures
The Group’s accounting policy is to temporarily capitalize drilling expenditures related to exploration wells, pending an evaluation of
potential oil and gas discoveries. If resources are not discovered, or if recovery of the resources is not considered technically or
commercially viable, the costs of the exploration wells are expensed in the income statement. Decisions as to whether an exploration
well should remain capitalized or expensed during the period may have a material effect on the financial results for the period.
Consolidated accounts
70 DNO Annual Report 2025
INTANGIBLE ASSETSTotal OtherLicenseExplorationintangible2025 - USD millionGoodwillinterestassetsOther assetsTotalAs of 1 January 2025Acquisition costs466.597.6484.415.5597.51,064.0Accumulated impairments-364.4-8.7-274.5--283.1-647.5Accumulated depreciation--72.2--13.7-85.9-85.9Net book amount102.116.7209.91.8228.5330.6Period ended 31 December 2025Opening net book amount102.116.7209.91.8228.5330.6Translation differences27.00.526.0-26.553.5Additions-1.7128.7-130.3130.3Additions through business combinations1,354.5-20.2-20.21,374.7Transfers*---42.1--42.1-42.1Disposals-41.2--1.3--1.3-42.4Exploration cost previously capitalized carried to cost---62.8--62.8-62.8Impairments (Note 10)**-81.8-----81.8Depreciation--1.2--1.2-2.4-2.4Closing net book amount1,360.617.7278.60.6296.91,657.5As of 31 December 2025Acquisition costs1,824.5100.0640.315.5755.82,580.3Accumulated impairments/exploration write-offs-463.9-8.9-361.7--370.6-834.5Accumulated depreciation--73.4--14.9-88.3-88.3Net book amount1,360.617.7278.60.6296.91,657.5Depreciation methodUoPLinear (3-7 years) * Transfers relate to reclassification of Kjøttkake and Ofelia discoveries from exploration assets (Other intangible assets) to development assets (Property, plant and equipment).** Includes USD 6.0 million of impairment of technical goodwill related to estimated asset retirement obligation.
Consolidated accounts
DNO Annual Report 2025 71
INTANGIBLE ASSETSTotal OtherLicenseExplorationintangible2024 - USD millionGoodwillinterestassetsOtherassetsTotalAs of 1 January 2024Acquisition costs397.597.8443.215.8556.9954.4Accumulated impairments/exploration write-offs-354.3-8.8-262.1--270.9-625.2Accumulated depreciation--71.1--12.8-83.9-83.9Net book amount43.218.0181.13.0202.1245.2Period ended 31 December 2024Opening net book amount43.218.0181.13.0202.1245.2Translation differences-6.3-0.1-23.2-0.4-23.7-30.0Additions--87.9-87.987.9Additions through business combinations113.8--113.8Disposals-0.8-----0.8Exploration cost previously capitalized carried to cost---35.9-35.9-35.9Impairments (Note 10)-47.7-----47.7Depreciation--1.1--0.8-1.9-2.0Closing net book amount102.116.7209.91.8228.5330.6As of 31 December 2024Acquisition costs466.597.6484.415.5597.51,064.0Accumulated impairments/exploration write-offs-364.4-8.7-274.5--283.1-647.5Accumulated depreciation--72.2--13.7-85.9-85.9Net book amount102.116.7209.91.8228.5330.6Depreciation methodUoPLinear (3-7 years)
Consolidated accounts
72 DNO Annual Report 2025
Note 9
Property, plant and equipment
Accounting policies
Property, plant and equipment (PP&E)
General
PP&E are recognized at historical cost and adjusted for depreciation, depletion and amortization (DD&A) and impairment charges.
Depreciation of PP&E other than oil and gas assets are generally depreciated on a straight-line basis over expected useful lives,
normally varying from three to seven years. Expected useful lives are reviewed at each balance sheet date and, where there are
changes in estimates, depreciation periods are changed accordingly.
Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part
of the asset’s acquisition cost, including interest expenses calculated using the effective interest method.
Exploration and development costs
Capitalized exploration expenditures are classified as intangible assets and reclassified to tangible assets (i.e., PP&E) at the start of
the development. For accounting purposes, an oil and gas field is considered to enter the development phase when the technical
feasibility and commercial viability of extracting oil and gas from the field are demonstrable. All costs of developing commercial oil
and gas fields are capitalized, including indirect costs. Capitalized development costs are classified as tangible assets.
Acquired license rights are recognized as intangible assets at the time of acquisition. Acquired license rights related to fields in the
exploration phase remain as intangible assets when the related fields enter the development or production phase. Furthermore, 3D
seismic cost over a discovery area is capitalized when the objective is to learn more about the reservoir and to support the
determination of new well locations within the discovery area.
Oil and gas assets in production
Capitalized costs for oil and gas assets are depreciated using the Units of Production (UoP) method. The rate of depreciation is
equal to the ratio of oil and gas production for the period over the estimated remaining 2P reserves at the beginning of the period.
The future development expenditures necessary to bring those reserves into production are included in the basis for depreciation
and are estimated by the management based on current period end un-escalated price levels. The reserve basis used for
depreciation purposes is updated at least once a year. Any changes in the reserves affecting UoP calculations are reflected
prospectively. Reserves and resources, along with associated estimation uncertainty, are described in detail in Note 27.
Right-of-use (RoU) assets
The RoU assets in the balance sheet are mainly related to office rent, an FSO vessel and a rig lease linked to the non-operated
Martin Linge oil and gas field. The recognized FSO and rig leases represent DNO’s share only. The RoU assets are measured to
cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The RoU
assets are depreciated linearly over the lifetime of the related lease contract. For measurement of lease liabilities, see Note 19. In the
consolidated statements of comprehensive income, operating lease costs, relating to contracts that contain a lease, are replaced by
depreciation and interest expense.
Consolidated accounts
DNO Annual Report 2025 73
PROPERTY, PLANT AND EQUIPMENTTotalDevelopmentProductionoil & gasOtherRoU2025 - USD millionassetsassetsassetsPP&EassetsTotalAs of 1 January 2025Acquisition costs399.23,344.23,743.415.132.03,790.6Accumulated impairments-127.6-412.0-539.5---539.5Accumulated depreciation--2,109.0-2,109.0-13.5-19.2-2,141.7Net book amount271.7823.31,094.91.612.81,109.4Period ended 31 December 2025Opening net book amount271.7823.31,094.91.612.81,109.4Translation differences75.732.9108.6--0.2108.4Additions*306.5255.4561.92.16.8570.8Business combinations139.91,368.91,508.8-27.31,536.1Transfers**-39.982.142.1--42.1Disposals--56.4-56.4---56.4Impairment/reversal (Note 10)134.9-134.9--2.7132.2Depreciation***--400.7-400.7-1.5-11.4-413.6Closing net book amount888.82,105.42,994.32.332.53,029.1As of 31 December 2025Acquisition costs891.75,112.96,004.715.466.76,086.7Accumulated impairments-3.0-461.8-464.7--2.7-467.4Accumulated depreciation--2,545.7-2,545.7-13.1-31.5-2,590.2Net book amount888.82,105.42,994.32.332.53,029.1Depreciation methodUoPLinear Linear (3-7 years) Contract * Includes changes in estimate of asset retirement (see Note 21) and capitalized interest.period** Transfers relate to reclassification of Kjøttkake and Ofelia discoveries from exploration assets (Other intangible assets) to development assets (Property, plant and equipment). In addition, Verdande, Andvare and Tambar East were transferred from development assets to production assets in 2025.*** Reductions in estimated asset retirement obligation related to production assets with no book value is netted against depreciation in the consolidated statement of comprehensive income.
Consolidated accounts
74 DNO Annual Report 2025
PROPERTY, PLANT AND EQUIPMENTTotalDevelopmentProductionoil & gasOtherRoU2024 - USD millionassetsassetsassetsPP&EassetsTotalAs of 1 January 2024Acquisition costs286.73,304.63,591.314.945.13,651.4Accumulated impairments-137.5-345.0-482.6-0.1--482.7Accumulated depreciation--1,993.3-1,993.3-13.6-28.5-2,035.4Net book amount149.1966.31,115.51.216.61,133.2Period ended 31 December 2024Opening net book amount149.1966.31,115.51.216.61,133.2Translation differences-19.7-29.4-49.2-0.1-0.3-49.5Additions*113.9111.0224.91.20.3226.4Business Combinations28.484.1112.5--112.5Disposals--30.9-30.9---30.9Impairments (Note 10)--98.3-98.3---98.3Depreciation--179.5-179.5-0.7-3.8-184.1Closing net book amount271.7823.31,094.91.612.81,109.4As of 31 December 2024Acquisition costs399.23,344.23,743.415.132.03,790.5Accumulated impairments-127.6-412.0-539.5---539.5Accumulated depreciation--2,109.0-2,109.0-13.5-19.2-2,141.7Net book amount271.7823.31,094.91.612.81,109.4Depreciation methodUoPLinear Linear (3-7 years)Contract period* Includes changes in estimate of asset retirement, see Note 21.
Consolidated accounts
DNO Annual Report 2025 75
Note 10
Impairments
Accounting policies
Impairments
At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. If an
impairment indicator is concluded to exist, an impairment test is performed.
Indications of impairment may include a decline in the long-term oil and gas price (or short-term oil and gas price for late-life oil and
gas fields), changes in future investments or significant downward revision of reserve and resource estimates. For the purposes of
impairment assessment, assets are grouped at the lowest levels for which there are separable identifiable cash inflows. For oil and
gas assets, a CGU may be individual oil and gas fields, or a group of oil and gas fields that are connected to the same
infrastructure/production facilities, or a license.
An impairment loss is recognized when the carrying amount exceeds the recoverable amount of an asset. The recoverable amount is
the higher of the asset’s fair value less costs to sell and its value in use. Fair value less costs to sell is determined through either the
discounted cash flow method (income approach) or the market transactions method (market approach). The value in use can only be
determined through the discounted cash flow method.
Goodwill
Goodwill is tested for impairment annually or more frequently when there are impairment indicators. Those indicators may be specific
to an individual CGU or groups of CGUs to which the goodwill is related. Goodwill is not depreciated and hence, an impairment test
is performed annually. Impairment of technical goodwill is expected on a recurring basis, unless there are positive changes in
underlying assumptions that more than offset the production from the CGU (or groups of CGUs).
When performing the impairment test for technical goodwill, deferred tax recognized in relation to the acquired assets in a business
combination reduces the net carrying value prior to the impairment charges. After initial recognition, depreciation of values calculated
in the purchase price allocations from business combinations will result in decreased deferred tax liability. When deferred tax from
the initial recognition decreases, more goodwill is exposed for impairment.
Impairment testing for residual goodwill is conducted at the CGU level based on its valuation. As a starting point, if the fair value of
the company’s equity exceeds its book value, no impairment is recorded.
Estimation uncertainty: Impairment/reversal of impairment of oil and gas assets
The estimation of the recoverable amount for the oil and gas assets includes assessments of expected future cash flows and future
market conditions, including entitlement production, net reserves and resources, future oil and gas prices, cost profiles, country risk
factors (i.e., discount rate), date of expiration of the licenses in Kurdistan and economic cut-off dates in the North Sea.
The fair value of an asset or a liability is measured using the assumptions that market participants would apply to price the asset or
liability, including assumptions about risk, assuming that market participants act in their economic best interest. The Group uses
valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value. The
fair value of oil and gas assets is normally based on discounted cash flow models (income approach), where the determination of
different inputs in the model requires significant judgment from management, as described in the section above regarding
impairment.
Climate considerations in impairment assessments
Certain climate considerations are factored into the Group’s estimation of cash flows that are applied in the calculation of recoverable
amount. This includes factoring in current legislation (e.g., environmental taxes/fees) and estimation of future levels of environmental
taxes/fees. On the NCS, petroleum operations are subject to the Norwegian carbon tax and to EU Emission Allowances (EUA) under
the EU Emissions Trading System (EU ETS). For DNO’s oil and gas assets on the NCS, the applied carbon price projection is based
on current EU ETS quota price and current Norwegian CO
2
tax and then increased linearly to 2,400 NOK/ton (real 2025 terms) in
2030 in line with statements from the Norwegian government. The internal carbon price curves are reviewed on an annual basis to
reflect the latest market trends and policy developments. In Kurdistan, the KRG introduced in 2021 a requirement for oil companies
to put plans in place to curb gas flaring to reduce emissions. The Company has run sensitivities for its Kurdistan oil assets with the
CO
2
tax assumptions as described in the scenarios described by the International Energy Agency (IEA).
An energy transition is likely to impact future oil and gas prices which in turn may affect the recoverable amount of the oil and gas
assets. Indirectly, climate considerations are also assessed in the forecasting of oil and gas prices where supply and demand are
considered.
Consolidated accounts
76 DNO Annual Report 2025
Impairment testing
Impairment assessment of DNO’s assets in Kurdistan is based on the value in use approach. For oil and gas assets in Norway and the
UK, as well as goodwill recognized in relation to the acquisitions, the impairment assessment is based on the fair value approach (level
3 in fair value hierarchy, IFRS 13). For both the value in use and fair value, the impairment testing is performed based on discounted
cash flows. The expected future cash flows are discounted to the net present value by applying a discount rate after tax. Cash flows are
projected for the estimated lifetime of the fields or license, which means that for the majority of licenses it exceeds five years.
Below is an overview of the key assumptions applied for impairment assessment purposes as of 31 December 2025.
Oil and gas prices
Forecasted oil and gas prices are based on management’s estimates and market data. The near-term price assumptions are based on
forward curve pricing over the period for which there is deemed to be a sufficient liquid market and observable broker and analyst
consensus. The long-term price assumptions reflect management’s best estimate of the oil and gas price development over the life of
the Group’s oil and gas fields based on its view of current market conditions and future developments. Management’s assessment also
includes comparison with long-term oil and gas price assumptions communicated by peer companies and other external forecasts. Oil
and gas price assumptions applied for impairment testing are reviewed and, where necessary, adjusted on a periodic basis.
The nominal oil and gas price assumptions applied for impairment assessments at yearend 2025 were as follows (yearend 2024 in
brackets):
2026
2027
2028
Brent (USD/bbl)
60.9 (74.4)
66.6 (72.0)
73.9 (71.9)
NBP (USD/mscf)
10.5 (11.4)
10.0 (11.1)
10.4 (10.5)
From 2029 onwards, the Brent oil price was based on the Group’s long-term price assumption of USD 75 per barrel in real 2025 terms
(yearend 2024: USD 65 per barrel). From 2029 onwards, the gas price was based on the Group’s long-term price assumption of USD
10 per mscf in real 2025 terms (yearend 2024: USD 9 per mscf).
Oil and gas price differential
The estimated net oil and gas price is based on the above nominal price assumptions adjusted for price differentials due to quality and
transportation and for premiums or discounts arising from offtake.
Oil and gas reserves and resources
Future cash flows are calculated on the basis of expected production profiles and estimated proven and probable remaining reserves
and additional risked contingent resources when the impairment assessments are based on the fair value approach. For more
information about reserves and resources estimate, see Note 1 and Note 27.
Discount rate
The discount rate is derived from the Company’s weighted average cost of capital (WACC). Main elements of the WACC include:
• For the value in use calculations, the capital structure considered in the WACC calculation is derived from DNO’s debt and equity to
enterprise value ratio at yearend. For the fair value calculations, the capital structure considered in the WACC calculation is derived
from the capital structures of an identified peer group and market participants.
• The cost of equity is calculated on a country-by-country basis using the Capital Asset Pricing Model (CAPM) and adding a country risk
premium. The beta factor is based on publicly available data about the Company’s beta in the value in use calculations, whereas the
beta factors used for the fair value calculations are based on publicly available market data about the identified peer group.
• For the value in use calculations, the cost of debt is based on yield-to-maturity on the Company’s outstanding bond loans with an
upward adjustment to reflect a potential extension, whereas for fair value calculations the cost of debt is based on an identified peer
group’s bond loan issues.
For the value in use calculations, the relevant post-tax nominal discount rate at yearend 2025 was 10.8 percent (13.3 percent at
yearend 2024) for the Kurdistan assets. For the fair value calculations, the relevant post-tax nominal discount rates at yearend 2025
was 8.0 percent for the Norwegian North Sea assets (8.9 percent at yearend 2024) and 7.9 percent for the UK North Sea assets (8.6
percent at yearend 2024).
Inflation and currency rates
The long-term inflation rate is assumed to be 2 percent independent of the underlying country or currency (unchanged from yearend
2024). DNO has applied the forward curve and observable broker and analyst consensus as basis for assessment of currency rates.
The USD/NOK applied for impairment testing at yearend 2025, was kept constant at USD/NOK 10.0 from the year 2026 onwards.
Consolidated accounts
DNO Annual Report 2025 77
Impairment charge and/or reversal
The following tables show the recoverable amounts and net impairment charges or reversals for the CGUs that were impaired or
reversed in 2025 and 2024 and how these were recognized in the income statement and the balance sheet.
2025 (USD million)Income statement:Balance sheet:ImpairmentImpairmentRecoverable -charge/Tax -charge/Property,Deferredamountreversalincomereversalplant andtax asset/CurrencyCGU, segment(post-tax)(pre-tax) -expense(post-tax)Goodwill*equipment -liabilityeffectsEkofisk area200.0-55.0--55.0-55.0---Dvalin73.0-14.0--14.0-14.0---Ivar Aasen area213.0-7.0--7.0-7.0---Brage area151.0134.9-105.229.7-134.9-105.2-Other CGUs, North Sea--2.52.0-0.60.2-2.72.0-Total56.4-103.3-46.9-75.8132.2-103.3-*Change in goodwill include USD 6.0 million not included in the table as it doesn't affect the income statement. It is impairment of technical goodwill related to estimated asset retirement obligation on the Oda field, part of the Ula area CGU. 2024 (USD million)Income statement:Balance sheet:ImpairmentImpairmentRecoverable -charge/Tax -charge/Property,Deferredamountreversalincomereversalplant andtax asset/CurrencyCGU, segment(post-tax)(pre-tax) -expense(post-tax)Goodwillequipment -liabilityeffectsBaeshiqa, Kurdistan82.0-89.0--89.0--89.0--Arran, North Sea20.1-41.6--41.6-41.3---0.3Vilje, North Sea5.3-2.2--2.2-2.2---0.0Ula area, North Sea--6.75.2-1.5--6.65.2-0.0Other CGUs, North Sea--6.4--6.4-2.4-2.6--1.4Total-146.05.2-140.8-46.0-98.25.2-1.8
In 2025, the Group recognized a net impairment reversal of USD 56.4 million (corresponding to a post-tax impairment charge of USD
46.9 million). The movement mainly reflects:
• A reversal of previously recognized impairment on the Bestla field, part of the Brage area, driven by positive post‑drill reservoir results
and a mature, de‑risked schedule and cost development;
• Impairments in the Ekofisk area, primarily due to increased capital cost estimates for upcoming investment projects; and
• Impairments in the Dvalin and Ivar Aasen areas, following downward revisions to production and reserve profiles based on updated
subsurface evaluations.
At yearend 2025, total book value of goodwill of USD 1,360.6 million is mainly related to technical goodwill from the Sval Energi
acquisition (USD 1,235.4 million), Norne CGU (USD 98.9 million) and Arran CGU (USD 21.7 million).
During 2024, a total impairment charge of USD 146.0 million (USD 140.8 million post-tax) was recognized, mainly driven by:
• The results of well testing programs (Baeshiqa CGU);
• Recognition of a deferred tax asset which triggered a partial impairment of goodwill (Arran CGU, see Note 11)
• Updated economic profiles (Vilje CGU); and
• Upward revision in the cost estimate for decommissioning (Ula area CGU).
At yearend 2024, total book value of goodwill of USD 102.1 million is mainly related to technical goodwill from the Norne area
transactions (USD 80.7 million) and Arran acquisition (USD 20.2 million).
Sensitivities
The table below illustrates how the net profit/loss in 2025 would have been affected by changes in the various assumptions, holding the
remaining assumptions unchanged. The estimated recoverable amounts related to the Tawke license in Kurdistan are substantially
higher than the carrying amounts and the same sensitivity tests would not imply any impairment charges.
Change in reported net profit/loss (net)Assumption (USD million)ChangeIncrease in assumption:Decrease in assumption:Oil and gas price +/- 15%165.0-500.5Reserves (2P) and resources (2C) +/- 5%75.0-90.0Discount rate (WACC) +/- 1%-39.040.0Currency rate (USD/NOK) +/- 1.0 NOK22.0-34.0
Climate considerations in impairment assessment
To evaluate the resilience of the Group’s oil and gas assets, the Company has performed sensitivity analyses based on oil and gas
price assumptions under three scenarios published by the IEA: the Net Zero Emissions by 2050 Scenario, the Stated Policies Scenario
and the Current Policies Scenario. These scenarios are widely applied by peer companies and are considered relevant for investors and
other stakeholders when assessing portfolio resilience across the industry.
The oil and gas price assumptions in these scenarios are provided by the IEA for 2035 and 2050 in real 2024 terms. For the purpose of
the sensitivity analysis, a linear price path has been applied between the average actual prices in 2025 and the IEA 2035 assumptions,
Consolidated accounts
78 DNO Annual Report 2025
and between the IEA 2035 and IEA 2050 assumptions. The table below summarizes the estimated impact on reported net profit or loss
from increases or decreases in impairment charges based on the oil and gas price assumptions under these scenarios.
Oil price USD/bbl (assumption)Gas price USD/MBtu (assumption)Change in reportedIEA scenario (USD million)2035205020352050net profit/loss (net):Current Policies Scenario (CPS)89.0106.09.110.683.0Stated Policies Scenario (STEPS)80.076.06.58.4-195.3Net Zero Emissions by 2050 Scenario (NZE)33.025.04.24.0-1,005.0
A significant reduction in the oil and gas price assumptions could also affect the estimated economic cut-off of the projects. These
illustrative impairment sensitivities assume no changes to assumptions other than oil and gas prices. The illustrative sensitivities on
climate change are not considered to represent a best estimate of an expected impairment impact. Moreover, a significant and
prolonged reduction in oil and gas prices would likely result in mitigating actions by DNO and its license partners; for example, it could
have an impact on drilling plans and production profiles for new and existing assets. Quantifying such impacts is considered
impracticable, as it requires detailed evaluations based on hypothetical scenarios and not based on existing business or development
plans.
License expiry and economic cut-off dates for development and production assets in Kurdistan
In Kurdistan, the Tawke license expires in 2026 but DNO has the right to one automatic five-year extension (i.e., to 2031) and, if
commercial production is still possible at the end of this extended period, DNO is entitled to, upon request to the KRG, a further five-
year extension (i.e., to 2036). Based on DNO’s current assessments, the production from Tawke license will be commercial for the
duration of its contractual term and through subsequent extensions. On the Baeshiqa license, commerciality was declared by the
contractor on 1 August 2021, terminating the exploration period and moving into the PSC development period, which has as a 20-year
duration. If commercial production is still possible at the end of the 20-year period, DNO is entitled to a five-year extension.
Consolidated accounts
DNO Annual Report 2025 79
Note 11
Business combinations
Accounting policies
Business combinations
In accordance with IFRS 3 Business Combinations, an acquisition is considered a business combination, when the acquired asset or
groups of assets constitute a business (i.e., an integrated set of operations and assets conducted and managed for the purpose of
providing a return to the investors).
Acquired businesses are included in the financial statements from the transaction date. The transaction date is defined as the date
on which the Group achieves control over the financial and operating assets. This date may differ from the actual date on which the
assets are transferred.
For accounting purposes, the acquisition method is used in connection with the purchase of businesses. Acquisition cost equals the
fair value of the assets used as consideration, including contingent consideration, equity instruments issued and liabilities assumed
in connection with the transfer of control. Acquisition cost is measured against the fair value of the acquired assets and assumed
liabilities. Identifiable intangible assets are included in connection with acquisitions if they can be separated from other assets or
meet the legal contractual criteria. If the acquisition cost at the time of the acquisition exceeds the fair value of the acquired net
assets (when the acquiring entity achieves control of the transferring entity), goodwill arises. If the fair value of the acquired net
assets exceeds the acquisition cost on the acquisition date, the excess amount is taken to profit or loss immediately.
Goodwill is allocated to the CGUs or groups of CGUs that are expected to benefit from synergy effects of the acquisition. The
allocation of goodwill may vary depending on the basis of its initial recognition.
The goodwill that is recognized by the Group is related to technical goodwill and residual goodwill. Technical goodwill is recognized
due to the requirement to recognize deferred tax for the difference between the assigned fair values and the related tax base. The
fair values of the Group’s licenses in the North Sea are based on cash flows after tax. This is because these licenses are sold only
on an after-tax basis. The purchaser is therefore not entitled to a tax deduction for the consideration paid above the seller’s tax
values. In accordance with IAS 12, a provision is made for deferred tax corresponding to the tax rate multiplied by the difference
between the fair values of the acquired assets and the transferred tax depreciation basis. The offsetting entry to this deferred tax is
goodwill. Hence, goodwill arises as a technical effect of deferred tax. Technical goodwill is tested for impairment separately for each
CGU which gives rise to the technical goodwill. A CGU may be individual oil fields, or a group of oil fields that are connected to the
same infrastructure/production facilities, or a license.
Residual goodwill is the portion of the consideration that cannot be allocated to identifiable assets or liabilities. It reflects the value of
expected synergies that can be realized from managing a larger portfolio on the NCS, including benefits from scale and the existing
workforce.
The estimation of fair value may be adjusted up to 12 months after the acquisition date if new information emerges about facts and
circumstances that existed at the time of the takeover and which, had they been known, would have affected the calculation of the
amounts that were included from that date.
Acquisition-related costs, except costs to issue debt or equity securities, are expensed as incurred. Taxes payable and deferred
taxes are recognized directly in the equity to the extent that they relate to items charged directly to the equity.
Estimation uncertainty
The Group applies the acquisition method for transactions involving business combinations and applies the principles of the
acquisition method when an interest or an additional interest is acquired in a joint operation which constitutes a business. Application
of the acquisition method may require significant judgement in, among other matters, determining and measuring the fair value of the
transaction consideration including contingent consideration elements, identifying all assets acquired and liabilities assumed,
establishing their fair values, determining deferred taxes and allocating the purchase price accordingly, including measurement and
allocation of goodwill.
The assets acquired through business combinations are recognized at fair values and, as such, are sensitive to adverse changes in
a number of often volatile economic factors, including future oil and gas prices and the underlying performance of the assets.
During 2025, the Company completed three transactions, as outlined below. These transactions meet the definition of business
combinations and have been accounted for using the acquisition method in accordance with IFRS 3. Purchase price allocations (PPAs)
have been carried out to allocate the consideration to the fair value of the identifiable assets acquired and liabilities assumed.
Consolidated accounts
80 DNO Annual Report 2025
Sval Energi acquisition
On 7 March 2025, DNO ASA entered into an agreement to acquire 100 percent of the shares of Sval Energi Group AS (Sval Energi)
from HitecVision funds for a cash consideration of USD 450.0 million, based on an enterprise value of USD 1.6 billion. The effective
date of the transaction was 1 January 2025 and the transaction was completed in June 2025. The Company has designated 31 May
2025 as the acquisition date for accounting purposes.
The cash consideration of USD 450.0 million was adjusted at completion in accordance with the share purchase agreement, resulting in
a final cash consideration of USD 462.4 million. The amount reported under investing activities in the consolidated cash flow statement
is presented net of USD 259.0 million of cash that Sval Energi contributed to the Group at the accounting acquisition date. No
contingent consideration is payable.
The goodwill recognized relates to:
- Technical goodwill, which arises from the requirement to recognize deferred tax on the difference between the assigned fair
value and the tax base of assets acquired and liabilities assumed, as described in the accounting policies.
- Residual goodwill, which is the portion of the consideration that cannot be allocated to identifiable assets or liabilities. It
reflects the value of expected synergies that can be realized from managing a larger portfolio on the NCS, including benefits
from scale and the existing workforce.
None of the goodwill recognized will be deductible for tax purposes. Transaction costs of USD 6.7 million were incurred and expensed
as administrative expenses in the consolidated statement of comprehensive income.
Since the acquisition date, DNO has recognized revenue of USD 733.0 million and a net loss of USD 20.9 million in its consolidated
statements of comprehensive income. If the acquisition had completed on 1 January 2025, DNO’s consolidated statement of
comprehensive income would have included an additional USD 722.3 million in revenue and an additional USD 19.1 million in net profit.Fair value atUSD millionacquisition dateGoodwill1,335.3Other intangible assets16.2Property, plant & equipment1,510.6Other non-current receivables8.2Other non-current assets4.5Inventories 36.1Trade and other receivables380.9Derivatives14.5Cash and cash equivalents 259.0Total assets3,565.4Deferred tax liabilities546.6Interest-bearing liabilities968.3Non-current provisions and other liabilities697.3Trade and other payables143.1Income taxes payable 624.0Derivatives13.3Current provisions and other liabilities110.5Total liabilities3,103.0Net assets and liabilities recognized462.4Fair value of consideration paid on acquisition462.4
The above PPA is preliminary and reflects the information currently available regarding the fair values as of the acquisition date. In
accordance with IFRS 3, the Company may revise the fair value assessments within twelve months of the acquisition date should new
information emerge that affects the initial estimates.
Consolidated accounts
DNO Annual Report 2025 81
Multi-asset swap with Aker BP
On 5 November 2025, DNO ASA announced that it had entered into an agreement to execute a multi-asset swap with Aker BP ASA. As
a result, DNO’s stake in the Verdande field increased from 10.5 to 14 percent. In exchange, the Company transferred its entire stake in
the Vilje field (28.9 percent) and a 9 percent interest in the Kveikje discovery, as well as reducing its interests in PL1171 (from 50 to 34
percent), PL1175 (from 30 to 20 percent) and PL1204 (from 60 to 40 percent). The transaction was completed on 29 December 2025,
which was also the acquisition date for accounting purposes. The recognized goodwill relates primarily to technical goodwill. No material
contingent consideration is payable or receivable and transaction costs were negligible.
Since the acquisition, DNO has included in its consolidated statement of comprehensive income a revenue of USD 0.0 million and a net
profit of USD 0.0 million. If the business combination had occurred in the beginning of 2025, DNO would have included in its
consolidated statement of comprehensive income a reduced revenue of USD 9.4 million and a net profit of USD 0.2 million.
Fair value atUSD millionacquisition dateGoodwill12.9Deferred tax assets0.6Producing asset20.6Tax receivable11.2Other current assets3.5Total assets48.8Deferred tax liabilities15.1Asset retirement obligation1.7Other current liabilities1.9Total liabilities18.6Net assets and liabilities recognized30.2Fair value of consideration paid on acquisition30.2The gain on the disposal, representing the difference between the proceeds and the carrying amount, has been recognized in the consolidated statements of comprehensive income.Net asset derecognized-1.2Consideration received9.8Gain11.0
Consolidated accounts
82 DNO Annual Report 2025
Transactions with Orlen
On 18 November 2025, DNO ASA announced the divestment of its 7.604 percent stake in the Ekofisk Previously Produced Fields (PPF)
project in license PL018B and PL018F on the NCS to Orlen Upstream Norway AS. DNO also announced the acquisition from Orlen of a
20 percent interest in license PL1135, which contains the Cassio prospect, as well as a 0.8272 percent interest in the Verdande field.
DNO retained its 7.604 percent in PL018 containing the producing fields Ekofisk, Eldfisk and Embla as well as a share in the Tor Unit.
The transaction was completed on 19 December 2025, which was also the acquisition date for accounting purposes and was settled in
cash. The recognized goodwill relates primarily to technical goodwill. No contingent consideration is payable or receivable and
transaction costs were negligible.
Since the acquisition, DNO has included in its consolidated statement of comprehensive income a revenue of USD 0.0 million and a net
profit of USD 0.0 million. If the business combination had occurred in the beginning of 2025, DNO would have included in its
consolidated statement of comprehensive income a revenue of USD 0.4 million and a net profit of USD 0.1 million.
Fair value atUSD millionacquisition dateGoodwill6.3Deferred tax assets0.3Producing asset4.9Exploration asset4.0Tax receivable2.7Other current assets0.4Total assets18.6Deferred tax liabilities6.7Asset retirement obligation0.4Other current liabilities0.6Total liabilities7.7Net assets and liabilities recognized10.9Fair value of consideration paid on acquisition10.9The gain on the disposal, representing the difference between the proceeds and the carrying amount, has been recognized in the consolidated statements of comprehensive income.Net asset derecognized35.0Consideration received38.6Gain3.6
Consolidated accounts
DNO Annual Report 2025 83
Note 12
Joint Venture
DNO holds 100 percent of the shares in Mondoil Enterprises LLC (Mondoil Enterprises) which has a 33.33 percent indirect interest in
privately-held Foxtrot International whose principal assets are operated stakes in offshore production of gas and associated liquids in
Côte d'Ivoire. Foxtrot International holds a 27.27 percent interest in and operatorship of Block CI-27 containing reserves of gas,
produced together with condensate and oil, from four offshore fields tied back to two fixed platforms.
Foxtrot International's summarized statement of financial positionYear ended 31 DecemberUSD million20252024Non-current assets129.7159.3Current assets58.250.1Total assets187.9209.4Non-current liabilities71.667.6Current liabilities28.724.8Total liabilities100.392.5Equity87.6116.9Group's share of net assets (33.33 %)28.338.1Goodwill0.80.8Fair value uplift on PP&E and ARO (net of related deferred tax)9.110.0Carrying amount Investment in Joint Venture38.148.8Foxtrot International's summarized statement of comprehensive income1 January - 31 DecemberUSD million20252024Revenues86.075.7Expenses-35.6-35.6Depreciation-33.6-33.7Other income/finance income9.06.2Tax income/expense--Net profit/loss25.812.6Group's share of net profit (33.33 %)8.64.2Depletion of fair value uplift of PP&E and ARO (net of related deferred tax)-0.9-0.9Share of profit/loss from Joint Venture7.73.3Movement in the carrying amount of Investment in Joint Venture1 January - 31 DecemberUSD million20252024Opening balance48.867.9Share of profit/loss from Joint Venture7.73.3Equity contribution into Joint Venture10.59.4Dividends from Joint Venture-27.2-31.8Other adjustments-1.8-Carrying amount Investment in Joint Venture38.148.8
Accounting policies
Joint Venture
The Group’s investments in a joint venture are accounted for using the equity method. The income statement reflects the Group’s
share of the results of operations in the joint venture. The financial statements of the joint venture are prepared for the same
reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the
Group.
Consolidated accounts
84 DNO Annual Report 2025
Note 13
Inventory
Years ended 31 December Kurdistan North Sea TotalUSD million202520242025202420252024Drilling equipment, spare parts and consumables69.570.955.623.4125.194.3Provision for obsolete inventory-15.2-15.2-4.2-4.3-19.4-19.4Total inventories54.355.751.419.1105.774.8
Accounting policies
Inventories
Inventories comprise of drilling equipment, spare parts and consumables for own use and are valued at the lower of cost and net
realizable value. Inventories that meet the definition of PP&E are presented under the PP&E and are depreciated as part of the
underlying capitalized asset using the UoP method.
Consolidated accounts
DNO Annual Report 2025 85
Note 14
Other non-current receivables/Trade and other receivables
Years ended 31 DecemberUSD millionNote20252024Trade debtors (non-current portion)120.098.2Total other non-current receivables120.098.2Trade debtors151.2185.0Tax indemnity receivable7128.8-Underlift35.97.1Other short-term receivables253.6146.1Total trade and other receivables569.6338.1
As of 31 December 2025, the Company was owed over USD 291.5 million, excluding interest, by the KRG mainly related to sales of
DNO’s entitlement shares of oil to the KRG for the months October 2022 through March 2023 plus part of the amount invoiced for oil
sold to the KRG in September 2022. These receivables are past due. Since 2017, DNO has consistently invoiced the KRG for such oil
sales based on an agreed Brent-based pricing mechanism. For September 2022, the KRG unilaterally decided to pay based on a
purported price realized by the KRG during the delivery month. The KRG proposed such change to the agreed pricing mechanism in
September 2022 but DNO did not agree with the proposal. DNO therefore continues to request payment of the full invoiced amount.
During 2025, DNO recognized that USD 6.6 million of these arrears had been settled by way of offsetting against payables due to the
KRG.
The Company continues to engage with the KRG regarding collection of the arrears and expects that it will recover the full invoiced
amount, but the timing of recovery is uncertain, see Note 3 Revenues. Due to accounting requirements to incorporate the time value of
money, the Company compared the book value of the KRG arrears with the present value of estimated future cash flows, resulting in a
cumulative USD 47.2 million reduction of the book value, a decrease of USD 14.5 million from previous year. Moreover, the
classification of the receivables (current/non-current portion) was updated accordingly. The calculation of present value in accordance
with IFRS 9, considers a range of possible scenarios with assigned weighting, involving estimation of the timing of receipt of the arrears
which will be dependent upon uncertain future events. A discount rate of 12 percent has been applied.
The underlift receivable of USD 35.9 million at yearend 2025 relates to North Sea. Other short-term receivables mainly relate to working
capital items in licenses in Kurdistan and the North Sea and accrual for earned income not invoiced in the North Sea.
Accounting policies
Trade debtors
Trade debtors are recognized at nominal value less any provisions for expected credit losses (ECL). ECLs are based on the
difference between the contractual cash flows due in accordance with the contract and all the (discounted) cash flows that are
expected to be received (i.e., cash shortfalls). ECLs on trade receivables are measured by applying either the general model or the
simplified model. A company must apply the simplified model for trade receivables, which, when invoiced, were without a significant
financing component. This applies to the Company’s oil and gas sales and hence the simplified model is applied in respect of the
ELC assessment of the Kurdistan trade debtors (see below).
Overlift/underlift
An underlift arises when the sales are less than the Group’s share of the oil and gas production. In general, the overlift/underlift
balances are valued at production cost including depreciation (the sales method). For overlift, see Note 22.
Consolidated accounts
86 DNO Annual Report 2025
Note 15
Cash and cash equivalents
Accounting policies
Cash and cash equivalents
Cash and short-term deposits in the statements of financial position comprise cash held in banks, cash in hand and short-term
deposits with an original maturity of three months or less and held to meet short term commitments. Restricted cash represents
funds that are set aside for a specific purpose and are therefore not available for the Group’s immediate or general use.
Years ended 31 DecemberUSD million20252024Cash and cash equivalents, restricted17.517.5Cash and cash equivalents, non-restricted436.1881.5Total cash and cash equivalents453.7899.0
Restricted cash consists of deposits on escrow account, employees’ tax withholdings, deposits for rent and cash that is subject to
contractual restrictions. Non-restricted cash is mainly related to bank deposits in USD, NOK, GBP and EUR as of 31 December 2025.
Consolidated accounts
DNO Annual Report 2025 87
Note 16
Equity
Accounting policies
Equity
Ordinary shares
Ordinary shares are classified as equity. Costs directly attributable to the issue of ordinary shares are recognized as a reduction of
equity.
Hybrid capital
See Note 17.
Dividend
A liability to pay a dividend is recognized when the distribution is authorized by the shareholders at the AGM or the Board of
Directors based on authorization by the AGM. A corresponding amount is recognized directly in equity.
At the 2025 AGM, the Board of Directors was given the authority to acquire treasury shares with a total nominal value of up to NOK
24,375,000 which corresponds to 97,500,000 new shares. The maximum amount to be paid per share is NOK 100 and the minimum
amount is NOK 1. The authorization is time-limited until the 2026 AGM, but not beyond 30 June 2026. As of the date of this report, the
authorization has not been utilized.
The Board of Directors were also given the authority to increase the Company’s share capital by up to NOK 24,375,000, which
corresponds to 97,500,000 shares. The authorization is time-limited until the 2026 AGM, but not beyond 30 June 2026. As of the date of
this report, the authorization has not been utilized.
In addition, the Board of Directors was given the authority to raise convertible bonds with an aggregate principal amount of up to USD
300,000,000. Upon conversion of bonds issued pursuant to this authorization, the Company’s share capital may be increased by up to
NOK 24,375,000. The authorization is valid until the 2026 AGM, but not beyond 30 June 2026. As of the date of this report, the
authorization has not been utilized.
The Board of Directors was given the authority to approve total dividend distributions from the date of the 2025 AGM until the date of the
2026 AGM. Following this, the Board of Directors decided to distribute quarterly dividends of NOK 0.375 per share in August and
November 2025 and NOK 0.375 February 2026. In addition, NOK 0.3125 per share was distributed in February and May 2025 based on
the authority granted at the 2024 AGM.
Consolidated accounts
88 DNO Annual Report 2025
InterestThe Company's shareholders as of 31 December 2025Shares(percent)Goldman Sachs & Co. LLC*92,535,4569.49Folketrygdfondet88,980,2449.13Clearstream Banking S.A.53,628,5795.50BNP Paribas47,255,4974.85Goldman Sachs & Co. LLC*33,147,7853.40Euroclear Bank S.A./N.V.27,809,2602.85RAK Gas LLC25,733,5522.70The Bank of New York Mellon21,001,9942.64UBS Switzerland AG14,902,6362.15State Street Bank and Trust Comp13,898,5161.53The Northern Trust Comp, London Br11,800,0001.43JPMorgan Chase Bank, N.A., London11,493,4111.21Nordnet Bank AB11,153,1971.18Verdipapirfondet KLP Aksjenorge IN10,848,5711.14Salt Value AS10,042,3051.11Holmen Spesialfond10,000,0001.03State Street Bank and Trust Comp9,404,3981.03Verdipapirfondet DNB Norge Indeks9,189,8870.96State Street Bank and Trust Comp8,780,6920.94Verdipapirfondet Storebrand Indeks7,985,7200.90Other shareholders455,408,30044.83Total number of shares excluding treasury shares975,000,000100.00Treasury shares as of 31 December 2025 (DNO ASA)0.000.00Total number of outstanding shares975,000,000100.00* At yearend 2025, DNO's Executive Chairman Bijan Mossavar-Rahmani held interests in the Company through nominee accounts at the Goldman Sachs & Co. LLC, representing 12.89 percent of the total number of outstanding shares.
Dividends to shareholders of USD 129.7 million were paid in 2025 (USD 101.9 million in 2024). See Note 29 for dividend payment
approved by the Board of Directors after the reporting date. See Note 4 for shares held by the Board of Directors and members of
senior management. For information regarding dividends to hybrid capital owners, see Note 17.
Consolidated accounts
DNO Annual Report 2025 89
Note 17
Hybrid capital
Accounting policies
Hybrid capital
Due to features such as its long maturity, subordination attributes and the option to defer coupon payments and ultimately not pay
these at maturity date, the hybrid bond has characteristics of equity. At initial recognition, the net present value of the principal is
presented as debt in the balance sheet. The difference between the proceeds received and the discounted liability is recorded as
equity. Transaction costs incurred in issuing the hybrid bond are accounted for as a deduction from equity. Cash received from
bondholders is therefore recognized primarily as an increase in equity. Coupon payments on the part classified as equity are not
recognized on an accrual basis; instead, coupon paid is accounted for as a decrease in equity when the related contractual payment
obligation arises on the coupon payment date, consistent with the accounting treatment of dividends. The tax benefit from coupon
deductions is recognized in tax income in the statement of comprehensive income. When calculating earnings per share, a
calculated coupon relating to the equity component of the hybrid bond is deducted from profit attributable to shareholders,
irrespective of whether all of it is actually paid (see Note 25).
On 17 June 2025, DNO ASA completed the placement of a USD 400 million hybrid bond with a coupon rate of 10.75 percent. The
hybrid bond will have the first call date five and a half years after issuance, a five percent coupon step-up after six years and a final
maturity date of 17 June 2085. DNO has the right to defer coupon payments and ultimately decide not to pay at maturity. Any deferred
coupon payments become payable if DNO decides to exercise a repayment call option, pay dividends to shareholders or liquidation
proceeds are formally opened. Due to DNO’s right to defer coupon payments indefinitely, only the net present value of the principal is
classified as debt in the statement of financial position. The difference between the proceeds and the recognized liability is at issuance
classified as equity, resulting in the majority of the principal amount being presented as equity. The terms of the hybrid bond do not
include any financial covenants.
USD millionEquityLiabilityTotalAs of 1 January 2025---Hybrid bond issue (17 June 2025)399.90.1400.0Issue costs-6.4--6.4Profit/loss allocated to hybrid capital owners21.5-21.5Accretion---Coupon payment classified as dividend-21.5--21.5As of 31 December 2025393.50.1393.6
Consolidated accounts
90 DNO Annual Report 2025
Note 18
Interest-bearing liabilities
Accounting policies
Interest-bearing liabilities
At initial recognition, the bonds are measured at its fair value minus transaction costs that are directly attributable to the issue of the
financial liability. Subsequently, bonds are measured at amortized cost.
Transaction costs directly attributable to the acquisition, issuance, or restructuring of financial liabilities, are amortized over the
expected life of the liability using the effective interest rate method. Amortization is recognized in the income statement, ensuring a
systematic and rational allocation of these costs over the period during which the liability is outstanding.
EffectiveinterestFair valueCarrying amountTickerFacilityFacilityInterestrate USD millionOSEcurrencyamount(percent)Maturity(percent)2025202420252024Non-currentBond loan (ISIN NO0011088593)DNO04USD350.07.87509.09.268.8-352.4-350.0Bond loan (ISIN NO0013243766)DNO05USD400.09.25004.06.2910.0425.1410.0400.0400.0Bond loan (ISIN NO0013511113)DNO06USD600.08.50027.03.309.1623.4-600.0-Hybrid bond (ISIN NO0013582627) liability portionDNO07USD400.010.75017.06.85-0.1-0.1-Capitalized borrowing issue costs-11.0-9.5Reserve based lending facility----See below--50.0-50.0Total non-current interest-bearing liabilities1,048.6812.4989.1790.5CurrentPrepayment facility-MultipleMultipleSee belowSee below-339.4-339.4-Total current interest-bearing liabilities339.4-339.4-Total interest-bearing liabilities1,388.0812.41,328.5790.5
Facility and carrying amount for the bonds are presented net of bonds held by the Company.
On 14 March 2025, DNO ASA completed the placement of a USD 600 million, five-year senior unsecured bond issued at 100 percent at
par with a coupon rate of 8.50 percent. Subsequently, on 10 April 2025, the Company completed the full redemption of the DNO04
bond, redeeming USD 350 million at a price of 102.3625 percent at par plus accrued interest. The financial covenants of the DNO05
and DNO06 bonds require a minimum of USD 40 million of liquidity, and that the Group maintains either an equity ratio of 30 percent or
a total equity of a minimum of USD 600 million.
On 17 June 2025, DNO ASA completed the placement of USD 400 million of subordinated hybrid bonds with a coupon rate of 10.75
percent. Due to the instrument’s long maturity and the issuer’s option to defer interest payments and ultimately decide not to pay at
maturity, the proceeds are mainly classified as equity. For more details, see Note 17.
During the second quarter of 2025, the Group fully repaid the outstanding amounts under its reserve-based lending (RBL) facilities
related to its Norwegian and UK production licenses, including the RBL facility assumed through the acquisition of Sval Energi, totaling
USD 602.3 million. At the same time, all letters of credit related to the Group’s Norwegian and UK oil and gas operations were replaced
by surety bonds.
On 25 June 2025, the Group entered into a USD 300 million one-year bridge loan with an interest rate of SOFR plus a margin of 4.00
percent. There were no amounts outstanding under the facility as of yearend 2025 and the facility serves as part of the security package
for gas hedging arrangements. The facility is subject to financial covenants, including a maximum net debt to EBITDAX ratio of 3.5x and
a minimum EBITDAX to interest expense ratio of 5.0x.
On 2 July 2025, DNO announced that the Norwegian operating subsidiaries entered into an offtake agreement with ENGIE SA for
DNO’s Norwegian gas production and secured a related offtake financing facility with a major U.S. bank for up to USD 500 million. The
offtake agreement has a tenor of four years as from 1 October 2025. Under the facility, the Company can sell receivables to the bank for
a period of up to 270 days based on expected gas production and forward prices. The facility carries interest at risk-free rate plus a
margin, is uncommitted and has no financial covenants.
On 18 December 2025, DNO announced that the Norwegian operating subsidiaries entered into two offtake agreements for DNO’s
North Sea oil production and secured related offtake financing facilities for up to USD 410 million. The agreement with ExxonMobil Asia
Consolidated accounts
DNO Annual Report 2025 91
Pacific Pte. Ltd., covering around half of DNO's North Sea oil output, has a tenor of two years and a related revolving credit facility of up
to USD 185 million. The agreement with Shell International Trading and Shipping Company Limited, covering the other half of the
output, has an initial tenor of one year and a related prepayment facility with a European bank of up to USD 225 million. Both facilities
are uncommitted.
There have been no breaches of the financial covenants of any interest-bearing liability in the current period.
Changes in liabilities arising from financing activities split on cash and non-cash changesAt 1 JanCashNon-cash changesAt 31 DecUSD million2025flowsAmortizationAcquisitionCurrencyReclass2025Bond loans (non-current)750.0600.1----350.01,000.1Bond loans (current)--350.0---350.0-Borrowing issue costs-9.5-11.610.1--0.1--11.0Reserve based lending facility50.0-572.3-522.3---Prepayment facilities--107.2-446.00.7-339.4Total790.5-441.010.1968.30.6-1,328.5At 1 JanCashNon-cash changesAt 31 DecUSD million2024flowsAmortizationAcquisitionCurrencyReclass2024Bond loans (non-current)400.0350.0----750.0Bond loans (current)131.2-131.2-----Borrowing issue costs-8.0-5.64.1----9.5Reserve based lending facility (non-current)-15.0---35.050.0Reserve based lending facility (current)35.0-----35.0-Total558.2228.24.1---790.5
Consolidated accounts
92 DNO Annual Report 2025
Note 19
Lease liabilities
Accounting policies
Lease liabilities
The Group assesses at contract inception whether a contract is, or contains, a lease. The Group applies a single recognition and
measurement approach for all leases, except for short-term leases (12 months or less) and leases of low-value assets. Short-term
leases and leases of low value assets have not been reflected in the balance sheet but expensed or capitalized as incurred,
depending on the activity in which the leased asset is used.
Lease liabilities are measured at the present value of lease payments to be made over the lease term. In calculating the present
value of lease payments, the Group uses the implicit interest rate and if not readily determinable, its incremental borrowing rate at
the lease commencement date. Extension options are included in the lease liability when, based on the management’s judgement, it
is reasonably certain that an extension will be exercised.
Lease agreements that are planned to be applied on several operated licenses are generally recognized on a gross basis as the
operator is deemed to be the primary obligator. The company may enter into lease contracts as an operator on behalf of a license
and may for such leases only recognize its net share of the related lease liability. Whether a contract is entered into on behalf of the
license is subject to a contract specific assessment. For lease contracts recognized on a gross basis, the partner's share of the cost
recovered by the Group is presented as other income.
In the consolidated cash flow, lease payments related to lease liabilities recognized in accordance with IFRS 16, are presented as
cash flow used in financing activities.
Years ended 31 DecemberUSD million20252024Non-current lease liabilities21.59.7Current lease liabilities15.93.1Total lease liabilities37.412.7
The recognized lease liabilities in the balance sheet are mainly related to office rent, a FSO vessel and a rig lease linked to the non-
operated Martin Linge oil and gas field. The FSO and rig leases were assumed as part of the Sval Energi acquisition and the lease
liability recognized represents DNO’s share only.
The identified lease liabilities have no significant impact on the Group’s financing, loan covenants or dividend policy. The Group does
not have any residual value guarantees. Lease payments related to short-term leases and leases of low-value assets are mainly
recognized under lifting costs and exploration costs, or tangible assets and capitalized exploration. Total lease payments related to
short-term leases and low-value assets were USD 76.2 million as of yearend 2025 (2024: USD 58.2 million) with most of the lease
payments related to drilling rigs.
The following table summarizes the Group’s maturity profile of the lease liabilities based on contractual undiscounted lease payments
and are related to office rent and equipment.
1 January - 31 DecemberUSD million20252024Within one year17.54.0Two to five years 21.58.7After five years 3.63.2Total undiscounted lease liabilities end of the period 42.715.9.
Consolidated accounts
DNO Annual Report 2025 93
Note 20
Asset retirement obligations
Accounting policies
Provisions for asset retirement obligations (ARO)
Provisions for ARO are initially recognized at the present value of the estimated future costs determined in accordance with local
conditions and requirements. A corresponding asset of an amount equivalent to the ARO provision is also recognized initially and is
presented as part of the PP&E. The retirement asset is subsequently depreciated as part of the development and production asset it
relates to.
The ARO provisions and the discount rates are reviewed at each balance sheet date. The discount rates used in the calculation of
the present value of the ARO are pre-tax risk-free rates with the addition of a credit margin. The risk-free rate used has a maturity
date that is expected to coincide with the time the removal will be affected and denominated in the same currency as the expected
future expenditures. According to IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities, changes in the
measurement of the ARO resulting from a change in the timing or amount of the outflow of resources embodying economic benefits
required to settle the obligation, or a change in the discount rate, are added to or deducted from the cost of the related asset.
Changes in the estimated ARO provisions impact the retirement asset in the period in which the estimate is revised.
Estimation uncertainty: Estimation of the cost for decommissioning
Estimation of the costs for decommissioning is complex and requires judgement as these estimates are based on currently
applicable laws, regulations and technology. Decommissioning activities will normally take place in the distant future, and the
technology, regulatory requirements and related costs may change. The energy transition may bring forward the decommissioning
activities and thereby increasing the present value of associated decommissioning provisions. Based on various scenario analysis
performed by the Company, management does not expect any reasonable change in the expected timeframe to have a material
effect on the Group’s decommissioning provisions, assuming cost estimates (i.e., cash flows) remain unchanged. The estimates
cover expected removal concepts based on known technology and, in the case of offshore decommissioning, estimated costs of
maritime operations, hiring of heavy-lift barges and drilling rigs. As a result, the initial recognition of the liability and the capitalized
cost associated with decommissioning obligations, and the subsequent adjustment of these balance sheet items, involve the
application of significant judgement. Based on the described uncertainty, there may be significant adjustments in estimates of
liabilities that can affect future financial results.
Asset retirement obligations (ARO)
The provisions for ARO are based on the present value of estimated future cost of decommissioning oil and gas assets in Kurdistan and
the North Sea. The discount rates before tax applied at yearend 2025 were between 4.6 percent and 5.6 percent (yearend 2024:
between 5.1 percent and 5.3 percent). The credit risk element included in the discount rates at yearend 2025 was 0.8 percent (yearend
2024: 0.8 percent).
Credit risk discussion
The Company note that International Accounting Standards Board (IASB) in relation to its project Provisions – Targeted Improvements,
based on a staff paper recommendation, have tentatively proposed to specify the use of a discount rate reflecting the time value of
money, based on a risk-free rate without adjustments for credit risk element (non-performance risk). However, considering that no new
requirements in the standard have been concluded, the Company deems it reasonable not to change its method for determining the
discount rate. The Company has benchmarked its applied discount rate against those used by peer companies and observes that it falls
within the range applied by other peer companies.
Years ended 31 DecemberUSD million20252024Non-current asset retirement obligations (ARO)1,169.0467.9Current asset retirement obligations (ARO)77.012.9Total asset retirement obligations (ARO)1,246.0480.8Years ended 31 DecemberUSD million20252024Asset retirement obligation as of 1 January480.8393.3ARO provisions from business combinations678.383.0ARO provisions divested assets-15.7-2.9Decommissioning spend-33.2-4.9Increase/decrease in existing/new provisions83.5-1.6Effects of change in the discount rate5.5-6.4Accretion expenses (unwinding of discount)46.820.4Asset retirement obligation as of 31 December1,246.0480.8
Consolidated accounts
94 DNO Annual Report 2025
Note 21
Other liabilities
Accounting policies
Provisions for other liabilities
A provision is recognized when the Group has a present obligation (legal or constructive) as a result of a past event, there is likely
that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the obligation amount.
The provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
Estimation uncertainty
The assessment of the existence and potential quantum of contingencies inherently involves the exercise of significant judgment and
the use of estimates regarding the outcome of future events. Management uses its judgment and, if necessary, external legal experts
to evaluate certain provisions and legal disputes in order to ensure the correct accounting treatment.
Years ended 31 DecemberUSD million20252024Non-currentOther long-term obligations44.46.9Total non-current other liabilities44.46.9CurrentAccrued interest expense3.34.4Other provisions and charges6.79.8Total current other liabilities10.114.2Total other liabilities54.521.1
Note 22
Trade and other payables
Accounting policies
Overlift
An overlift arises when the Group sells more than its share of the oil and gas production (the sales method). For underlift, see Note
14.
Years ended 31 DecemberUSD million20252024Trade payables61.084.5Public duties payable2.84.0Prepayments from customers4.84.7Overlift and other adjustments112.1103.7Other accrued expenses281.4126.8Total trade and other payables462.1323.7
Trade payables and other accrued expenses include items of working capital related to participation in licenses in Kurdistan and the
North Sea and prepayment from customers related to oil sales in Kurdistan. The overlift and other adjustments relate to North Sea
overlifted volumes, valued at production cost including depreciation and other lifting related adjustments in Kurdistan.
Consolidated accounts
DNO Annual Report 2025 95
Note 23
Financial instruments
Accounting policies
Financial instruments
Financial assets
The Group’s financial assets include trade and other receivables, derivatives, tax receivables and cash and cash equivalents.
Financial assets are initially recognized at fair value. After initial recognition the measurement and accounting treatment depend on
the type of instrument and classification: Financial investments at amortized cost through profit and loss, at fair value through profit
and loss (FVTPL) and at fair value through other comprehensive income (FVTOCI).
A financial asset is derecognized when the Group no longer has the right to receive its cash flows, usually when the asset is sold and
the risks and rewards of ownership are transferred, or when the contractual rights to the cash flows expire, are redeemed, or are
cancelled.
Financial liabilities
The Group’s financial liabilities include trade and other payables, income taxes payable, loans and derivatives.
Interest-bearing loans are, after initial recognition, measured at amortized cost using the effective interest rate method. Gains and
losses are recognized in profit or loss when the liabilities are derecognized as well as through the amortization process. Amortized
cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the
effective interest rate. The amortization cost is included as finance expense in the statements of comprehensive income. This applies
mainly to bond loans, see Note 18.
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such a modification is treated as a derecognition of the original liability and a recognition of a new liability. The
difference in the respective carrying amounts is recognized in the statements of comprehensive income.
Derivative financial instruments
Derivatives are measured at fair value on initial recognition and subsequently at each reporting date. Changes in fair value are
recognized in statement of comprehensive income. All derivatives are measured at fair value on a recurring basis (level 2 in the fair
value hierarchy). No hedge accounting is applied.
Financial risk management, objectives and policies
Overview
DNO is exposed to a range of risks affecting its financial performance including market risk, liquidity risk and credit risk. The Group
seeks to minimize potential adverse effects of such risks through sound business practices and risk management programs. No hedge
accounting is applied.
Market risk
The Group is exposed to market risks driven by fluctuations in oil and gas prices, foreign currency exchange rates and interest rates.
Oil and gas price risk
DNO’s revenues are generated from the sale of oil and gas. Through the acquisition of Sval Energi, DNO assumed a portfolio of
commodity derivatives which are used to hedge a portion of the Group’s exposure to gas price fluctuations. The Company monitors its
oil and gas price risk on a continuous basis and evaluates hedging alternatives.
As of 31 December 2025, the Group had hedged approximately 42 percent of its post-tax gas price exposure in the North Sea for the
first half of 2026 and around 30 percent of the corresponding exposure for the second half of 2026. The hedging strategy involves the
use of collar structures. For the first half of 2026, the weighted average strike prices are USD 63 per boe for the purchased puts and
USD 143 for the calls sold. For the second half of 2026, the equivalent strike prices are USD 58 for the puts and USD 101 for the calls.
The Group has a current commodity derivative liability of USD 5.6 million, entirely related to deferred hedging premiums.
Consolidated accounts
96 DNO Annual Report 2025
The following table illustrates the impact on reported 2024 and 2025 profit/loss before income tax from oil and gas price fluctuations
deemed reasonable and possible, with all other variables held constant. In addition to driving revenues, price fluctuations or the
expectations of price fluctuations could impact DNO’s capital expenditure levels and impairment assessments. See Note 9 for a
sensitivity analysis related to the impairment assessment of oil and gas assets.
Change in yearendEffect on profitoil and gas pricebefore tax USD (percent) (USD mill)2025+/- 15.0 +/- 2092024+/- 15.0 +/- 87.9
Foreign currency exchange rate risk
Revenues from oil and gas production are primarily in USD, GBP and EUR, while operating expenses, capital and abandonment
expenditures are primarily denominated in USD, NOK and GBP. Dividend distributions from the Company and Norwegian tax payments
are in NOK. The Group had no currency hedging instruments at yearend 2025. The Group continuously monitors its foreign currency
risk exposure and evaluates hedging alternatives.
The following tables illustrate the impact on DNO’s reported profit/loss before income tax in 2024 and 2025 from foreign currency
exchange rate fluctuations deemed reasonable and possible in NOK, EUR and GBP to USD exchange rates, with all other variables
held constant. The other currencies (e.g., AED, IQD) are not included as the exposure is deemed immaterial.
Change inEffect on profitNOK (percent)before tax (USD mill)2025+ 10.0-18.52025- 10.018.52024+ 10.04.42024- 10.0-4.4Change inEffect on profitGBP (percent)before tax (USD mill)2025+ 10.0-31.42025- 10.031.42024+ 10.030.02024- 10.0-30.0Change inEffect on profitEUR (percent)before tax (USD mill)2025+ 10.010.42025- 10.0-10.42024+ 10.010.82024- 10.0-10.8
Interest rate risk
As most of the Group’s financing derives from bond loans which are issued in USD and at fixed interest rates, the Group does not
engage in interest rate hedging. Interest rate exposure on the offtake agreements is considered limited and no hedging arrangement
was in place during 2025. The Group is exposed to interest rate risk on its cash deposits held at floating interest rates.
The following table illustrates the impact on DNO’s reported profit/loss before income tax in 2024 and 2025 from a change in interest
rates on that portion of interest-bearing liabilities and cash deposits deemed reasonable and possible, with all other variables held
constant.
Increase/decreaseEffect on profitin basis pointsbefore tax (USD mill)2025+/- 100+/-7.62024+/- 100+/-7.5
Liquidity risk
Liquidity risk is the risk that suitable sources of funding for the Group’s business activities may not be available. Prudent liquidity risk
management requires sufficient cash balances, credit facilities and other financial resources to maintain financial flexibility under
dynamic market conditions. The Group’s principal sources of liquidity are operating cash flows from its producing assets in Kurdistan
and the North Sea. In addition to its operating cash flows, the Group relies on the debt capital markets for both short- and long-term
funding. For further details, see Note 18, which outlines the debt transactions and financing facilities put in place during 2025, as well as
the Group’s outstanding debt at yearend. The Group’s finance function prepares projections on a regular basis in order to plan the
Group’s liquidity requirements. These plans are updated regularly for various scenarios and form part of the basis for decision making
by the Company’s Board of Directors and senior management.
Consolidated accounts
DNO Annual Report 2025 97
Investment in joint venture
Foxtrot International issues cash calls to Mondoil Enterprises (see Note 12) to fund capital and operating requirements for Côte d’Ivoire
Block CI-27, which are made on a regular basis pursuant to an approved budget and work program. The cash distributions anticipated
to be received from Foxtrot International will be sufficient to enable the Company to meet all of its scheduled and anticipated obligations.
Excessive risk concentration
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical
region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in
economic, political or other conditions. DNO’s revenues in 2025 derived primarily from several licenses in the North Sea and from
production in the Tawke license in Kurdistan (see also entitlement risk described in Note 3). Through the acquisition of Sval Energi, the
Group has further diversified its revenue sources and lowered its relative exposure to Tawke license. The Group actively seeks to
reduce concentration risk through organic growth and asset acquisitions aimed at further diversifying its revenue sources.
The tables below summarize the maturity profile of the Group’s financial liabilities based on contractual undiscounted cash flows.
USD millionOnLess than 3 to 12 1 to 3 Over 3 At 31 December 2025demand3 months months years years Interest-bearing liabilities*-181.5157.9 - 1,000.0Hybrid bond**----400.0Other provisions and charges-9.70.3--Taxes payable-61.0128.3 - 131.0Derivatives - Commodities-1.93.7--Trade and other payables-240.5221.6--Total liabilities-494.6511.8-1,531.0USD millionOnLess than 3 to 12 1 to 3 Over 3 At 31 December 2024demand3 months months years years Interest-bearing liabilities*---400.0400.0Hybrid bond**-----Other provisions and charges--13.40.8-Taxes payable-----Derivatives - Commodities-----Trade and other payables-223.7100.0--Total liabilities-223.7113.4400.8400.0
* Face value of the bonds was USD 1,000.0 million at yearend 2025 (USD 750.0 million at yearend 2024).
** The face value of the hybrid bond is USD 400.0 at yearend 2025.
For changes in liabilities arising from financing activities, see Note 18.
Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing
financial loss to the Group. The Group’s exposure to credit risk is mainly related to its outstanding trade debtors. Other counterparty
credit risk exposure to DNO is related to its cash deposits with banks and financial institutions. The table below provides an overview of
financial assets exposed to credit risk at yearend.
Years ended 31 DecemberUSD millionNote20252024Trade debtors (non-current portion) 14120.098.2Trade debtors 14151.2185.0Other receivables 14418.4153.1Derivatives11.5-Tax receivables 7-0.027.5Cash and cash equivalents15453.7899.0Total 1,154.81,362.9
Trade debtors from oil sales invoices in Kurdistan
The past due trade debtors are entirely related to Kurdistan. Refer to Note 14 regarding assessment of the Kurdistan receivables.
The table below shows the aging of trade debtors and information about credit risk exposure using a provision matrix.
Consolidated accounts
98 DNO Annual Report 2025
Days past due (trade debtors)ContractUSD millionNoteassetsCurrent< 30 days30-60 days61-90 days> 90 daysTotalAs of 31 December 2025Trade debtors (nominal value)14-19.4291.5309.5- - - Expected credit loss rate (percent)-------Expected credit loss rate (USD million)-------As of 31 December 2024Trade debtors (nominal value)14-17.7298.1315.9- - - Expected credit loss rate (percent)-------Expected credit loss rate (USD million)-------
Cash deposits
Credit risk from balances with banks and financial institutions is managed by the Group’s treasury function. The Group limits its
counterparty credit risk by maintaining its cash deposits with multiple banks and financial institutions with high credit ratings.
Capital management
For the purpose of the Group’s capital management, capital is defined as the total equity and debt of DNO. The Group manages and
adjusts its capital structure to ensure that it remains sufficiently funded to support its business strategy and maximize shareholder value.
If required, the capital structure may be adjusted through equity or debt transactions, asset restructuring or through other measures.
The Group monitors capital on the basis of the total equity and equity ratio, which is calculated as total equity divided by total assets.
The financial covenants of the bond loans require a minimum of USD 40 million of liquidity and that the Group maintain either an equity
ratio of 30 percent or a total equity of a minimum of USD 600 million.
There is also a restriction on declaring or making any dividend payments if the liquidity of the Company is less than USD 80 million
immediately after such distribution is made, see Note 18. The equity ratio has dropped primarily due to the issue of DNO05 and DNO06
bonds, recognition of liabilities in connection with acquisitions offset by the issue of the DNO07 hybrid bond majority of which is
classified as equity. The table below shows the book equity ratio at yearend.
No changes were made in the objectives, policies or processes for managing capital during 2025 and 2024.
Years ended 31 DecemberUSD million20252024Total equity1,328.51,080.0Total assets5,998.32,966.1Equity ratio22.1%36.4%
Fair value measurement
Assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy as described below.
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following table shows the carrying amounts and fair values of financial liabilities, including their levels in the fair value hierarchy. It
does not include the carrying amounts and fair value information for financial assets and financial liabilities not measured or disclosed at
fair value if the carrying amount is a reasonable approximation of fair value.
Total Fair value hierarchycarrying 2025 - USD millionNoteFVTPLAmortized costvalueLevel 1Level 2Level 3Financial assets measured or disclosed at fair valueDerivative financial instruments11.511.511.5Financial liabilities measured or disclosed at fair valueInterest-bearing liabilities (non-current)18989.1989.11,448.6--Interest-bearing liabilities (current)18339.4339.4-339.4-Derivative financial instruments5.65.6-5.6-
Consolidated accounts
DNO Annual Report 2025 99
Fair value hierarchyTotal carrying 2024 - USD millionNoteFVTPLAmortized costvalueLevel 1Level 2Level 3Financial liabilities measured or disclosed at fair valueInterest-bearing liabilities (non-current)18790.5790.5762.4-50.0Interest-bearing liabilities (current)18-----
Consolidated accounts
100 DNO Annual Report 2025
Note 24
Commitments and contingencies
Accounting policies
Commitments and contingencies
A provision is recognized when the Group has a present obligation (legal or constructive) as a result of a past event, there is likely
that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the obligation amount.
Contingent liabilities are not recognized but are disclosed unless the possibility of an outflow of resources is remote.
Estimation uncertainty: Contingencies, provisions and litigations
By their nature, contingencies will only be resolved when one or more uncertain future event occurs or does not occur. The
assessment of the existence and potential quantum of contingencies inherently involves the exercise of significant judgment and the
use of estimates regarding the outcome of future events. Management uses its judgment to evaluate certain provisions and legal
disputes in order to ensure the correct accounting treatment.
Contingent liabilities and contingent assets
Disputes with Ministry of Oil and Minerals of Yemen – Block 53
The Ministry of Oil and Minerals (MOM or Ministry) of Yemen filed an arbitration claim against operator Dove Energy Limited and the
other partners (including DNO Yemen AS) for allegedly wrongful withdrawal from Block 53. An arbitral award was rendered in July 2019
partially in the Ministry’s favor in the amount of USD 29 million (out of a USD 171 million claim). The Contractor (including DNO Yemen
AS) filed for annulment proceedings in the French courts. The case is still pending, now before the French Supreme Court.
In 2023, a net amount of USD 29.2 million was paid by DNO Yemen AS to MOM in connection with arbitral awards resolving disputes
regarding inter alia Block 53. DNO took action against a former Block 53 license partner for payment of the portion of the amounts due
to the MOM for which that partner was liable. An award was rendered in DNO’s favor and in October 2025, DNO received USD 21.3
million from that former partner. This amount has been recognized in the lines Other operating income/expense and Financial income.
Other claims
During the normal course of its business, the Group may be involved in other legal proceedings and unresolved claims. The Group has
made provisions in its consolidated financial statements for probable liabilities related to litigation and claims based on management's
best judgment and in line with IAS 37. Other than what is set out above, DNO is not aware of any governmental, legal or arbitral
proceedings (including any such proceedings which are pending or threatened) initiated against DNO and which may have significant
effects on DNO’s results of operations, cash flows or financial position.
Capital commitments and abandonment expenditures
Based on work plans as of yearend 2025 and contingent on future market conditions, including development in the oil price and
outcome of ongoing engagement related to recovery of arrears for past oil deliveries to the KRG and payment terms and conditions for
any future oil exports, the Group’s projected operational spend for 2026 comprising capital and exploration expenditures, abandonment
expenditures and operational expenditures amounts to USD 1,650 million. The projected operational spend reflects the Group’s share of
planned drilling and facility investments and decommissioning plan in its licenses for 2026. These work plans are subject to revisions.
Guarantees at yearend
The Company has issued parent company guarantees to authorities in Norway and the UK on behalf of certain subsidiaries that
participate in licenses on the NCS and the UKCS. The Company has furthermore issued parent company guarantees in connection with
surety bonds, asset transactions and financing. The Company or its subsidiaries have also issued various guarantees to cover future
decommissioning obligations and gas transportation costs.
Liability for damages/insurance
Installations and operations are covered by various insurance policies.
Consolidated accounts
DNO Annual Report 2025 101
Note 25
Earnings per share
1 January - 31 December20252024Net profit/loss attributable to ordinary equity holders of the parent (USD million)-25.2-27.1EPS adjustment for calculated interest/dividend on hybrid capital (USD million)-23.1-Weighted average number of ordinary shares excluding treasury shares (millions)975.00975.00Earnings per share, basic (USD)-0.05-0.03Earnings per share, diluted (USD)-0.05-0.03
Basic earnings per share are calculated by dividing the net profit/loss attributable to equity holders by the weighted average number of
outstanding ordinary shares during the period.
The Company did not have any potential dilutive shares at yearend 2025.
Consolidated accounts
102 DNO Annual Report 2025
Note 26
Group companies and other companies
Ownership and votingUSD millionOfficeinterest (percent)Shares in the Company's subsidiariesDNO Iraq ASNorway100DNO UK LimitedUnited Kingdom100DNO Mena ASNorway100DNO Technical Services ASNorway100DNO Yemen ASNorway100DNO North Sea Holding ASNorway100DNO Algeria ASNorway100DNO Venture ASNorway100DNO Middle East and Africa ASNorway100Mondoil Enterprises LLCUnited States100Shares in subsidiaries owned through subsidiariesDNO Mena ASAutumn Limited (under liquidation)Guernsey100RAK Petroleum Public Company LimitedUnited Arab Emirates100DNO North Sea Holding ASDNO Norge ASNorway100DNO North Sea LimitedUnited Kingdom100DNO North Sea (U.K.) LimitedUnited Kingdom100DNO North Sea (ROGB) LimitedUnited Kingdom100DNO Exploration UK LimitedUnited Kingdom100Oldco (07432949) Limited (Under liquidation)United Kingdom100Oldco (04848025) Limited (Under liquidation)United Kingdom100DNO Middle East and Africa ASDNO Oil & Gas Iraq LLCUnited States100Shares in other entities, indirectly (equity accounted)Mondoil Côte d’Ivoire LLCUnited States50Foxtrot InternationalCayman Islands33.33
The Group’s operations in Kurdistan are carried out through its subsidiary DNO Iraq AS.
Activities on the NCS are carried out through DNO Norge AS. DNO ASA acquired Sval Energi Group AS with subsidiaries in June 2025.
During 2025, the operating company Sval Energi AS merged with former DNO Norge AS (dissolved as part of the merger) and renamed
to DNO Norge AS, while the remaining entities acquired in the business combination were merged into DNO North Sea Holding AS.
UKCS activities are carried out through DNO North Sea (U.K.) Limited, DNO North Sea (ROGB) Limited, DNO Exploration UK Limited
and DNO UK Limited. In 2025, DNO North Sea (Energy) Limited was renamed Oldco (04848025) Limited and DNO North Sea SIP EBT
Limited was renamed Oldco (07432949) Limited.
Activities in Côte d'Ivoire are carried out by Foxtrot International, in which the Company’s indirect ownership of 33.33 percent is
accounted for using the equity method.
In 2025, West Limited was liquidated and DNO Tunisia Limited was renamed to Autumn Limited and is in the process of being
liquidated.
DNO ASA, DNO Technical Services AS and DNO North Sea Limited provide technical support and services to the various companies in
the Group. The other subsidiaries from the table above had minimal activity during the year.
Consolidated accounts
DNO Annual Report 2025 103
Note 27
Oil and gas reserves (unaudited)
Estimation uncertainty: Reserves and resources estimates
DNO’s reserves and contingent resources are estimated and classified by the Company in accordance with the rules and guidelines
of the Society of Petroleum Engineers (SPE) and are in conformity with requirements from the Oslo Stock Exchange for the reporting
of reserves and resources. All estimates of reserves and resources involve uncertainty.
Important factors that could cause actual results to differ from the estimates include, but are not limited to: technical, geological and
geotechnical conditions; economic and market conditions; oil and gas prices; changes in government regulations; political
developments; interest rates and currency exchange rates. Specific parameters of uncertainty related to the field/reservoir include but
are not limited to: reservoir pressure and porosity; recovery factors; water cut development; production decline rates; gas/oil ratios;
and oil properties.
Changes in commodity prices and costs may impact economic cut-off and remaining reserves, which may change the timing of any
decommissioning activities. Future changes to estimated reserves can also have a material effect on depreciation, impairment of oil
and gas fields and operating results. The Group may also not be able to commercially develop its contingent resources that are used
in impairment assessments or acquisition accounting where the fair value approach is applied.
Consolidated accounts
104 DNO Annual Report 2025
Net reserves by region/field as of 31 December 2025Proven (1P)Proven and probable (2P)Proven, probable and possible (3P)MMboeOilNGLGasTotalOilNGLGasTotalOilNGLGasTotalTawke89.3 - - 89.3106.4 - - 106.4116.2 - - 116.2Peshkabir56.1 - - 56.192.9 - - 92.9105.6 - - 105.6Kurdistan145.4 - - 145.4199.3 - - 199.3221.7 - - 221.7Arran0.20.31.01.50.40.51.62.50.60.72.33.5Blane0.1- - 0.20.50.1 - 0.50.50.1 - 0.6Enoch----- - - -- - - -UK0.40.31.01.70.90.51.63.01.10.72.34.1Alve0.10.62.83.50.31.04.45.70.61.66.99.1Berling2.22.16.610.92.82.68.413.84.34.213.421.9Bestla4.60.61.77.06.10.72.08.97.70.92.511.1Brage1.10.10.21.41.70.20.62.52.10.30.73.1Duva0.10.21.01.40.20.31.62.10.20.42.02.6Dvalin0.2 - 5.65.80.5 - 10.511.00.6 - 13.514.1Ekofisk5.50.10.35.97.10.10.57.78.80.20.69.6Eldfisk7.20.31.38.89.00.41.610.911.20.51.913.6Embla0.1-0.10.20.1-0.10.30.1-0.20.3Fenja2.30.51.44.23.80.72.36.94.80.93.08.8Hanz - - - - ----0.1--0.1Ivar Aasen3.70.51.05.14.90.61.36.86.10.81.68.4Kvitebjørn1.31.010.613.01.81.414.017.22.21.717.521.4Maria5.40.70.76.89.61.21.312.213.01.61.716.4Martin Linge3.41.28.713.34.81.913.320.16.02.416.925.3Marulk0.10.11.92.20.40.45.66.40.50.56.77.6Norne0.4-0.10.40.5-0.10.60.7-0.10.8Nova4.81.01.67.48.93.14.716.812.24.77.023.9Oda0.5- - 0.51.6- - 1.61.90.1 - 1.9Skuld0.3-0.20.50.6-0.20.80.7-0.21.0Symra4.20.40.75.39.40.81.611.814.21.32.417.9Tambar0.3-0.10.41.0-0.21.31.60.10.32.0Tambar Øst0.3--0.41.0-0.11.11.40.10.11.6Tor0.4--0.40.6--0.70.9--1.0Trym0.2-1.92.20.3-2.73.00.3 - 3.23.5Ula0.2- - 0.20.5- - 0.50.6- - 0.7Urd0.4- - 0.40.6- - 0.60.8 - - 0.8Vega-0.20.50.60.10.31.01.40.20.41.42.0Verdande2.6-0.53.24.90.11.16.17.40.22.39.9Vilje------------Norway51.89.849.6111.383.016.379.4178.8111.222.8106.3240.3Subtotal Consolidated reserves258.3381.1466.1Côte d’Ivoire CI-270.15.75.80.28.89.00.311.511.8West Africa0.1 - 5.75.80.2 - 8.89.00.3 - 11.511.8Subtotal Equity accounted reserves5.89.011.8Total Group197.710.156.3264.1283.516.889.8390.1334.323.5120.1478.0
Consolidated accounts
DNO Annual Report 2025 105
Reserves development by segment (net to DNO)KurdistanNorth SeaSubtotalWest AfricaTotal GroupMMboe1P2P3P1P2P3P1P2P3P1P2P3P1P2P3PAs of 1 January 2024175.1244.5298.023.835.149.3198.9279.6347.37.610.513.2206.4290.1360.5Production-21.6-21.6-21.6-5.6-5.6-5.6-27.1-27.1-27.1-1.1-1.1-1.1-28.3-28.3-28.3Acquisitions - 5.99.012.85.99.012.8---5.99.012.8- - Divestments - -1.0-1.2-1.4-1.0-1.2-1.4----1.0-1.2-1.4- - Extensions and discoveries - ---- - - - - - - - - - - New developments - 2.97.614.42.97.614.4---2.97.614.4- - Revision of previous estimates-10.71.9-18.53.62.80.5-7.14.7-18.0----7.14.7-18.0As of 31 December 2024142.8224.9257.929.647.770.2172.5272.6328.06.49.412.0178.9281.9340.1Production*-19.2-19.2-19.2-29.6-29.6-29.6-48.8-48.8-48.8-1.2-1.2-1.2-50.0-50.0-50.0Acquisitions* - 91.2142.5176.691.2142.5176.691.2142.5176.6- - - - - Divestments - -0.6-1.3-2.7-0.6-1.3-2.7-0.6-1.3-2.7- - - - - Extensions and discoveries - - - - - - - - - - - - - - - New developments - - - - - - - - - - - - - - - Revision of previous estimates21.8-6.4-17.022.322.429.944.116.113.00.60.81.044.616.914.0As of 31 December 2025145.4199.3221.7112.9181.8244.4258.3381.1466.15.89.011.8264.1390.1478.0* In this table, production and acquisition volumes include 9.6 MMboe produced from acquired Sval Energi assets between effective date 1 January 2025 and completion.Net Entitlement (NE) reserves by segmentKurdistanNorth SeaSubtotalWest AfricaTotal GroupMMboe1P2P3P1P2P3P1P2P3P1P2P3P1P2P3PAs of 31 December 202450.369.475.029.647.770.280.0117.1145.14.26.37.884.2123.4152.9As of 31 December 202550.761.265.0112.9181.8244.4163.6243.0309.43.85.57.0167.4248.6316.4
The reserves and contingent resources are according to the ASRR dated 11 March 2026. Reported reserves fall within class 1-3 of the
NOD classification and 2C resources fall within class 4-7.
The Company’s Annual Statement of Reserves and Resources (ASRR) has been prepared in accordance with the Oslo Stock
Exchange listing and disclosure requirements Circular No. 1/2013. International petroleum consultants DeGolyer and MacNaughton
(D&M) carried out an independent assessment of the Tawke license in Kurdistan. Baeshiqa license figures, assessed by D&M a year
earlier, are kept unchanged from the 2024 ASRR. International petroleum consultants AGR carried out an independent assessment of
reserves and resources in DNO’s producing and under development fields in Norway and the UK. Contingent resources relating to
discoveries in Norway, the UK and Yemen are reported based on the Company’s own assessment. DNO's CI-27 license (held through
its indirect 33.33 percent interest in the operating entity) in Côte d’Ivoire was independently assessed by international petroleum
consultants Beicip-Franlab in 2023. The Dutch acreage held by DNO does not hold any reserves or resources.
At yearend 2025, DNO’s net 1P reserves stood at 264.1 MMboe, compared to 178.9 MMboe at yearend 2024, after adjusting for
production during the year and changes due to acquisitions and divestments, reclassifications and technical revisions. On a 2P basis,
DNO’s net reserves stood at 390.1 MMboe, compared to 281.9 MMboe at yearend 2024. On a 3P basis, DNO’s net reserves were
478.0 MMboe, compared to 340.1 MMboe at yearend 2024. DNO’s net contingent (2C) resources were 301.6 MMboe, up from 213.4
MMboe at yearend 2024 after adjusting for new discoveries, volumes moved to reserves and technical revisions.
The most important event impacting DNO’s reserves, resources and production in 2025 was the acquisition of Sval Energi, which held
2P reserves of 141.0 MMboe and 2C resources of 101.2 MMboe in Norway at yearend 2024. The transaction was completed in June.
2025 net production totaled 50 MMboe when including 9.6 MMboe produced from the acquired Sval Energi assets between effective
date 1 January 2025 and completion. Out of the total, 28.2 MMboe came from Norway, 19.2 MMboe came from Kurdistan, 1.4 MMboe
from the UK and 1.2 MMboe from Côte d'Ivoire.
Using total net production figures including full contribution from the Sval Energi assets throughout the year, the Company’s net 2025
yearend Reserve Life Index (R/P) stood at 5.3 years on a 1P reserves basis, 7.8 years on a 2P reserves basis and 9.6 years on a 3P
reserves basis.
Net reserves in DNO’s licenses governed by PSCs (Kurdistan and Côte d’Ivoire) are based on the participation interest. Net Entitlement
(NE) reserves are net to DNO after royalty. Net reserves in these licenses reflect DNO’s share before government take while NE
reserves reflect DNO’s share after government take. NE reserves are based on economic evaluation of the license agreements,
incorporating projections of future production, costs and oil and gas prices. NE volumes may therefore fluctuate over time, even if there
are no changes in the underlying gross and net volumes.
Net and NE reserves in DNO’s licenses not governed by PSCs (Norway and the UK) are equivalent and reflect gross reserves multiplied
by the Company’s participating interest.
Consolidated accounts
106 DNO Annual Report 2025
Note 28
Oil and gas license portfolio
Kurdistan licenses
At yearend 2025, DNO held interests in two licenses in Kurdistan. The Tawke license contains the producing Tawke and Peshkabir
fields. The Baeshiqa license contains two large structures with multiple independent stacked target reservoirs, including in the
Cretaceous, Jurassic and Triassic formations. The structures at Baeshiqa and Zartik have the potential to be part of a single
accumulation of hydrocarbons at one or more of the geological formation intervals.
North Sea (Norway, the UK and other)
At yearend 2025, DNO held 129 offshore licenses in Norway, seven offshore licenses in the UK and one offshore license in the
decommissioning phase in the Netherlands.
West Africa (Côte d’Ivoire)
Through a one-third stake in the operating company, Foxtrot International, DNO holds a nine percent interest in Côte d’Ivoire’s Block CI-
27. The block contains the Foxtrot gas field, the Mahi gas field, the Marlin oil and gas field and the Manta gas field. In accordance with
IFRS, DNO’s indirect interest in Foxtrot International is accounted for using the equity method (see Note 12).
Other
At yearend 2025, DNO held one onshore license in Yemen.
As is customary in the oil and gas industry, most of the Group's assets are held in partnership with other companies. Below is an
overview of the Group's licenses, which are held through several wholly-owned subsidiary companies. For licenses where the Company
has ownership as of 31 December 2025 the Operators and partners are as of 31 December 2025, see annual report 2024 for
information as of 31 December 2024.
As of 31 December 2025Held through DNO as a subsidiary:Participating Region/licenseinterest (%)OperatorPartner(s)KurdistanTawke PSC75.0DNO Iraq ASGenel Energy International LimitedBaeshiqa PSC64.0DNO Iraq ASTurkish Energy Company Limited, Kurdistan Regional GovernmentNorwayPL001 B15.0Aker BP ASADNO Norge AS, EquinorPL001 E15.0Aker BP ASADNO Norge AS, EquinorPL006 C (SE Tor)65.0DNO Norge ASAker BP ASAPL018 (Ekofisk)7.6ConocoPhillips Skandinavia ASDNO Norge AS, TotalEnergies EP Norge AS, Vår Energi ASA, Petoro ASPL019 (Ula)20.0Aker BP ASADNO Norge ASPL019 E (Ula)20.0Aker BP ASADNO Norge ASPL019 F (Ula)45.0Aker BP ASADNO Norge ASPL028 B (Hanz)15.0Aker BP ASADNO Norge AS, Equinor Energy ASPL040 (Martin Linge)19.0Equinor Energy ASDNO Norge AS. Petoro ASPL043 (Martin Linge)19.0Equinor Energy ASDNO Norge AS. Petoro ASPL043 BS (Martin 19.0Equinor Energy ASDNO Norge AS. Petoro ASLinge)PL048 D (Enoch)9.3Equinor Energy ASPetrolia NOCO AS, Aker BP ASA, DNO Norge ASPL053 B (Brage)14.3OKEA ASALime Petroleum AS, DNO Norge AS, Petrolia NOCO AS, M Vest Energy ASPL055 (Brage)14.3OKEA ASALime Petroleum AS, DNO Norge AS, Petrolia NOCO AS, M Vest Energy ASPL055 B (Brage)14.3OKEA ASALime Petroleum AS, DNO Norge AS, Petrolia NOCO AS, M Vest Energy ASPL055 D (Brage)14.3OKEA ASALime Petroleum AS, DNO Norge AS, Petrolia NOCO AS, M Vest Energy ASPL055 E (Brage)14.3OKEA ASALime Petroleum AS, DNO Norge AS, Petrolia NOCO AS, M Vest Energy ASPL055 FS (Brage)14.3OKEA ASALime Petroleum AS, DNO Norge AS, Petrolia NOCO AS, M Vest Energy ASPL065 (Tambar)45.0Aker BP ASADNO Norge ASPL065 B (Tambar)45.0Aker BP ASADNO Norge ASPL090 C25.0Harbour Energy Norge ASDNO Norge AS, Vår Energi ASA, Inpex Idemitsu Petroleum Norge ASPL122 (Marulk)37.0DNO Norge ASEquinor Energy AS, Orlen Upstream Norway ASPL122 B (Marulk)37.0DNO Norge ASEquinor Energy AS, Orlen Upstream Norway ASPL122 C (Marulk)37.0DNO Norge ASEquinor Energy AS, Orlen Upstream Norway ASPL122 D (Marulk)37.0DNO Norge ASEquinor Energy AS, Orlen Upstream Norway ASPL127 (Verdande)25.0Equinor Energy ASJapex Norge AS, DNO Norge ASPL 127 DS (Verdande)56.0DNO Norge ASJapex Norge ASPL128 (Norne)14.8Equinor Energy ASPetoro AS, DNO Norge ASPL128 B (Norne)6.9Equinor Energy ASPetoro AS, DNO Norge ASPL128 D (Norne)14.8Equinor Energy ASPetoro AS, DNO Norge ASPL128 E (Norne)14.8Equinor Energy ASPetoro AS, DNO Norge ASPL147 (Trym)*100.0DNO Norge ASPL147 B (Trym)*100.0DNO Norge ASPL159 B (Alve)32.0Equinor Energy ASDNO Norge AS, Orlen Upstream Norway ASPL159 G (Alve)32.0Equinor Energy ASDNO Norge AS, Orlen Upstream Norway ASPL167 (Symra)20.0Aker BP ASAEquinor Energy AS, DNO Norge AS
Consolidated accounts
DNO Annual Report 2025 107
PL167 B (Symra)20.0Aker BP ASAEquinor Energy AS, DNO Norge ASPL167 C (Symra)20.0Aker BP ASAEquinor Energy AS, DNO Norge ASPL185 (Brage)14.3OKEA ASALime Petroleum AS, DNO Norge AS, Petrolia NOCO AS, M Vest Energy ASPL193 (Kvitebjørn)19.0Equinor Energy ASDNO Norge AS, Petoro AS, Orlen Upstream Norway AS, TotalEnergies EP Norge PL193 C (Kvitebjørn)19.0Equinor Energy ASASDNO Norge AS, Petoro AS, Orlen Upstream Norway AS, TotalEnergies EP Norge PL211 (Dvalin)10.0Harbour Energy Norge ASASDNO Norge AS, Petoro ASPL242 (Ivar Aasen)15.0Aker BP ASADNO Norge AS, Equinor Energy AS, OKEA ASA, M Vest Energy ASPL242 B (Ivar Aasen)15.0Aker BP ASADNO Norge AS, Equinor Energy AS, OKEA ASA, M Vest Energy ASPL248 F (Vega)20.0Harbour Energy Norge ASPetoro AS, DNO Norge ASPL248 GS (Vega)20.0Harbour Energy Norge ASPetoro AS, DNO Norge ASPL248 K (Vega)20.0Harbour Energy Norge ASPetoro AS, DNO Norge ASPL293 B20.0Equinor Energy ASDNO Norge AS, Japex Norge AS, Inpex Idemitsu Petroleum Norge ASPL293 CS29.0Equinor Energy ASDNO Norge AS, Japex Norge AS, Inpex Idemitsu Petroleum Norge ASPL300 (Tambar Øst)45.0Aker BP ASADNO Norge ASPL37520.0Equinor Energy ASDNO Norge AS, Vår Energi ASA, Petoro ASPL37812.1Harbour Energy Norge ASDNO Norge AS, Pandion Energy ASPL405 (Oda)85.0Aker BP ASADNO Norge ASPL418 (Nova)45.0Harbour Energy Norge ASDNO Norge AS, OKEA ASA, Pandion Energy ASPL418 B (Nova)45.0Harbour Energy Norge ASDNO Norge AS, OKEA ASA, Pandion Energy ASPL435 (Dvalin)10.0Harbour Energy Norge ASDNO Norge AS, Petoro ASPL475 BS (Maria)20.0Harbour Energy Norge ASDNO Norge AS, Petoro ASPL475 CS (Maria)20.0Harbour Energy Norge ASDNO Norge AS, Petoro ASPL586 (Fenja)25.0Vår Energi ASADNO Norge ASPL586 B (Fenja)25.0Vår Energi ASADNO Norge ASPL636 (Duva)10.0Vår Energi ASADNO Norge AS, Inpex Idemitsu Norge AS, Orlen Upstream Norway ASPL636 B (Duva)10.0Vår Energi ASADNO Norge AS, Inpex Idemitsu Norge AS, Orlen Upstream Norway ASPL636 C (Duva)10.0Vår Energi ASADNO Norge AS, Inpex Idemitsu Norge AS, Orlen Upstream Norway ASPL636 D (Duva)10.0Vår Energi ASADNO Norge AS, Inpex Idemitsu Norge AS, Orlen Upstream Norway ASPL644 (Berling)30.0OMV (Norge) ASEquinor Energy AS, DNO Norge ASPL644 B (Berling)30.0OMV (Norge) ASEquinor Energy AS, DNO Norge ASPL644 C (Berling)30.0OMV (Norge) ASEquinor Energy AS, DNO Norge ASPL644 D (Berling)30.0OMV (Norge) ASEquinor Energy AS, DNO Norge ASPL740 (Bestla)39.3OKEA ASADNO Norge AS, Lime Petroleum AS, M Vest Energy ASPL827 S49.0Equinor Energy ASDNO Norge ASPL827 SB49.0Equinor Energy ASDNO Norge ASPL836 S30.0Harbour Energy Norge ASDNO Norge AS, Equinor Energy ASPL836 SB30.0Harbour Energy Norge ASDNO Norge AS, Equinor Energy ASPL92320.0Equinor Energy ASDNO Norge AS, Petoro ASPL923 B20.0Equinor Energy ASDNO Norge AS, Petoro ASPL92910.0Vår Energi ASAHarbour Energy AS, Pandion Energy Norge AS, Aker BP ASA, DNO Norge ASPL95615.0Vår Energi ASADNO Norge AS, AkerBPPL98430.0DNO Norge ASVår Energi AS, Source Energy AS, Equinor Energy Norge AS, Aker BP ASAPL104940.0DNO Norge ASConcedo AS, Petoro ASPL108525.0Aker BP ASADNO Norge AS, Petoro ASPL108650.0DNO Norge ASAker BP ASA, Petoro AS, Source Energy ASPL110230.0OKEA ASADNO Norge AS, Aker BP ASA, Equinor Energy ASPL1102 B30.0OKEA ASADNO Norge AS, Aker BP ASA, Equinor Energy ASPL1102 C30.0Equinor Energy ASDNO Norge AS, Aker BP ASAPL110840.0DNO Norge ASOkea ASA, Pandion Energy ASPL110920.0OMV (Norge) ASAker BP ASA, DNO Norge AS, Pandion Energy AS, Okea ASAPL111330.0OKEA ASADNO Norge ASPL111910.0Equinor Energy ASInpex Idemitsu Norge AS, Okea ASA, DNO Norge ASPL112130.0Equinor Energy ASDNO Norge AS, Vår Energi ASAPL113520.0Orlen Upstream Norway ASDNO Norge AS, Source Energy ASPL114720.0Aker BP ASADNO Norge AS, Equinor Energy ASPL114830.0Wellesley Petroleum ASDNO Norge AS, Equinor Energy AS, Aker BP ASAPL1148 B30.0Wellesley Petroleum ASDNO Norge AS, Equinor Energy AS, Aker BP ASAPL1148 CS30.0Wellesley Petroleum ASDNO Norge AS, Equinor Energy AS, Aker BP ASAPL1150 S40.0OKEA ASADNO Norge ASPL115120.0Harbour Energy Norge ASAker BP ASA, DNO Norge AS, Pandion Energy AS, Equinor Energy ASPL1151 B20.0Harbour Energy Norge ASAker BP ASA, DNO Norge AS, Pandion Energy AS, Equinor Energy ASPL115840.0Aker BP ASADNO Norge AS, Equinor Energy ASPL117134.0Aker BP ASADNO Norge ASPL117230.0Aker BP ASADNO Norge AS, Orlen Upstream Norway ASPL117520.0Aker BP ASADNO Norge AS, Orlen Upstream Norway ASPL1175 B30.0Aker BP ASADNO Norge AS, Orlen Upstream Norway ASPL117715.0Equinor Energy ASDNO Norge AS, OMV (Norge) ASPL1182 S40.0DNO Norge ASAker BP ASA, Concedo ASPL118520.0Equinor Energy ASDNO Norge AS, Aker BP ASA, Vår Energi ASAPL118620.0Equinor Energy ASDNO Norge AS, Harbour Energy Norge AS, Okea ASAPL119820.0Aker BP ASADNO Norge AS, Petoro AS, Source Energy ASPL1198 B20.0Aker BP ASADNO Norge AS, Petoro AS, Source Energy ASPL120320.0Vår Energi ASAEquinor Energy AS, DNO Norge AS, Petoro ASPL120440.0DNO Norge ASEquinor Energy ASPL1204 BS60.0DNO Norge ASEquinor Energy ASPL120540.0ConocoPhillips Skandinavia ASDNO Norge ASPL120940.0DNO Norge ASConcedo AS, Equinor Energy ASPL1212 S40.0Equinor Energy ASDNO Norge AS, Aker BP ASAPL1213 S30.0Vår Energi ASADNO Norge AS, Harbour Energy Norge AS
Consolidated accounts
108 DNO Annual Report 2025
PL121640.0DNO Norge ASHarbour Energy Norge AS, Source Energy ASPL1225 S20.0Harbour Energy Norge ASDNO Norge AS, Petoro ASPL122640.0Equinor Energy ASDNO Norge ASPL122830.0OMV (Norge) ASEquinor Energy AS, DNO Norge ASPL124460.0DNO Norge ASAker BP ASAPL124530.0Aker BP ASADNO Norge AS, Petoro ASPL125150.0DNO Norge ASConcedo AS PL125520.0Wellesley Petroleum ASEquinor Energy AS, DNO Norge AS, Okea ASAPL125840.0Petrolia NOCO ASDNO Norge ASPL126035.0Vår Energi ASADNO Norge AS, OKEA ASAPL126750.0DNO Norge ASOKEA ASA, M Vest Energy ASPL1270100.0DNO Norge ASPL1271 S25.0Aker BP ASADNO Norge AS, Equinor Energy ASPL127340.0Petrolia NOCO ASDNO Norge AS* As part of the Ministry of Energy’s approval of the acquisition of Sval Energi, the Company is required to reduce its ownership in certain exploration and production licenses where it became the sole licensee following completion of the transaction. UKP11154.3Repsol Sinopec Resources UK LtdDNO North Sea (U.K.) Ltd, DNO North Sea (ROGB) Ltd, Dana Petroleum (BVUK) Ltd.DNOP21918.2Repsol Sinopec North Sea Ltd North Sea (ROGB) Ltd, Dana Petroleum (BVUK) Ltd, Waldorf Production UK LtdDNP25545.0Shell U.K. LtdO North Sea (U.K.) Ltd, Spirit Energy Resources LtdP1720 (Arran)50.0Rockrose UKCS4 LtdDNO North Sea (UK) LtdP254350.0DNO North Sea (U.K.) LtdAker BP UK LtdP359 Area A (Arran)18.9Shell U.K. LtdDNO North Sea (UK) Ltd, Rockrose UKCS4 LtdP359 Area B (Arran)18.9Shell U.K. LtdDNO North Sea (UK) Ltd, Rockrose UKCS4 LtdNetherlandsD18a2.5Neptune E&P UKCS LtdDNO North Sea (U.K.) Ltd, Ineos UK SNS Ltd, Premier Oil E&P UK LtdYemenBlock 4764.0DNO Yemen ASThe Yemen Company, Geopetrol Hadramaut IncorporatedHeld through equity-accounted investment Mondoil Cote d’Ivoire/Foxtrot International as a joint venture (Note 12):Côte d’IvoireBlock CI-2727.3Foxtrot International LDCSECI SA, Petroci
Consolidated accounts
DNO Annual Report 2025 109
Note 29
Significant events after the reporting date
Accounting policies
Significant events after the reporting date
Adjusting events are those providing evidence of conditions existing at the end of the reporting period, whereas non-adjusting events
are indicative of conditions arising after the reporting period (the latter being disclosed where material).
DNO receives 17 awards in Norway's APA licensing round
On 13 January 2026, the Company announced that its wholly-owned subsidiary DNO Norge AS has been awarded participation in 17
exploration licenses of which four are operatorships, under Norway's APA 2025 licensing round. Of the 17 new licenses, 15 are in the
North Sea and two in the Norwegian Sea.
The Company’s Board of Directors approve dividend payment
On 5 February 2025, the Company announced that pursuant to the authorization granted at the 2025 AGM, the Board of Directors had
approved a dividend payment of NOK 0.375 per share. Payment of the dividend was made on 25 February 2026. This is considered a
non-adjusting event (see also parent company accounts).
Temporarily shutdown of production and drilling operations on the Tawke license
Following the U.S.-Israeli air war on Iran that started on 28 February 2026, DNO temporarily shut down production and drilling
operations on the Tawke license in the Kurdistan region of Iraq and evacuated its staff. The Company continues to monitor
developments closely to assess when it can safely and securely resume operations.
110 DNO Annual Report 2025
Parent company accounts
Income statement
111
Balance sheet
111
Cash flow statement
113
Note disclosures
Note 1
Accounting principles
114
Note 2
Operating revenues
115
Note 3
Salaries, pensions, remuneration, shares, options and severance
115
Note 4
Other operating expenses
118
Note 5
Net financial income/expenses
118
Note 6
Taxes
119
Note 7
Property, plant and equipment/Intangible assets
120
Note 8
Investment in shares
120
Note 9
Other receivables
121
Note 10
Cash and cash equivalents
121
Note 11
Equity
121
Note 12
Guarantees, leasing liabilities and commitments
122
Note 13
Interest-bearing liabilities
122
Note 14
Current liabilities
122
Note 15
Financial instruments
122
Note 16
Related party disclosure
123
Note 17
Earnings per share
123
Note 18
Intercompany
124
Note 19
Significant events after the reporting date
125
Parent company accounts
DNO Annual Report 2025 111
Income statement
1 January - 31 December
USD thousand
Note
2025
2024
Operating revenues
2, 18
28,224
25,130
Total operating revenues
28,224
25,130
Depreciation
7
-1,649
-1,680
Payroll and other social expenses
3
-27,197
-22,117
Other operating expenses
4
-23,612
-16,503
Total operating expenses
-52,458
-40,300
Operating profit/loss
-24,234
-15,170
Net financial income/expense
5
255,844
29,293
Profit/loss before income tax
231,610
14,123
Tax income/expense
6
-
-
Net profit/loss
231,610
14,123
Net profit/loss attributable to:
Dividends paid on hybrid capital
11
21,500
-
Equity holders of the parent
11
210,110
14,123
Earnings per share, basic (USD per share)
17
0.22
0.01
Earnings per share, diluted (USD per share)
17
0.22
0.01
Weighted average number of shares outstanding (millions)
975.00
975.00
Balance sheet
ASSETS
Years ended 31 December
USD thousand
Note
2025
2024
Fixed assets
Intangible assets
7
584
1,827
Property, plant and equipment
7
1,116
1,273
Total intangible and tangible assets
1,700
3,100
Financial assets
Shares in subsidiaries
8
1,366,052
560,194
Intercompany receivables
18
630,905
105,921
Total financial assets
1,996,957
666,115
Total non-current assets
1,998,657
669,215
Current assets
Intercompany receivables
18
22,868
10,451
Other receivables
9
6,622
6,819
Cash and cash equivalents
10
228,790
746,207
Total current assets
258,280
763,477
TOTAL ASSETS
2,256,937
1,432,692
Parent company accounts
112 DNO Annual Report 2025
EQUITY AND LIABILITIES
Years ended 31 December
USD thousand
Note
2025
2024
Paid-in capital
Share capital
32,858
32,858
Share premium
343,620
343,620
Hybrid capital
393,494
-
Total paid-in capital
11
769,972
376,478
Retained earnings
Retained earnings
192,403
119,690
Total retained earnings
11
192,403
119,690
Total equity
11
962,375
496,168
Non-current liabilities
Intercompany liabilities
18
241,477
138,733
Interest-bearing liabilities
13
989,070
741,374
Other non-current liabilities
5,262
2,455
Total non-current liabilities
1,235,809
882,562
Current liabilities
Trade payables and provisions for other liabilities and charges
14
21,598
20,001
Intercompany liabilities
18
879
7,101
Dividend
11
36,276
26,860
Total current liabilities
58,753
53,962
Total liabilities
1,294,562
936,524
TOTAL EQUITY AND LIABILITIES
2,256,937
1,432,692
Oslo, 11 March 2026
Bijan Mossavar-Rahmani
Gunnar Hirsti
Elin Karfjell
Executive Chairman
Deputy Chairman
Director
Anita Marie Hjerkinn Aarnæs
Najmedin Meshkati
Grethe Kristin Moen
Director
Director
Director
Ferris J. Hussein
Christopher Spencer
Director
Managing Director
Parent company accounts
DNO Annual Report 2025 113
Cash flow statement
1 January - 31 December
USD thousand
Note
2025
2024
Operating activities
Profit/loss before income tax
231,610
14,123
Adjustments to add (deduct) non-cash items:
Depreciation
7
1,649
1,680
Impairment/reversal of impairment (-) of financial assets
5
-264,613
-34,303
Amortization of borrowing issue costs
5,13
6,374
3,834
Interest expense
5
99,004
55,898
Interest income
5
-53,981
-39,456
Other
1,477
192
Changes in working capital and provisions:
- Intercompany and other receivables
9,18
-12,220
-4,208
- Trade payables and intercompany liabilities
14,18
1,592
4,708
- Provisions for other liabilities and charges
14
-3,415
9
Cash generated from operations
7,477
2,477
Interest received
38,469
36,513
Interest paid
-84,514
-49,603
Net cash from/used in operating activities
-38,568
-10,612
Investing activities
Purchases of intangible and tangible assets
7
-243
-1,089
Loans to subsidiaries
18
-587,276
47,296
Acquisition of subsidiary*
-462,387
-
Net cash from/used in investing activities
-1,049,906
46,207
Financing activities
Proceeds from borrowings
13
600,000
350,000
Proceeds from hybrid bond
13
400,000
-
Repayment of borrowings
13
-350,000
-131,162
Payment debt issue costs
13
-8,423
-5,599
Payment of hybrid bond issue cost
11
-6,426
-
Loans from subsidiaries
18
87,072
138,733
Paid dividend
11
-129,666
-102,521
Paid dividend hybrid bond owners
11
-21,500
-
Net cash from/used in financing activities
571,057
249,450
Net increase/decrease in cash and cash equivalents
-517,417
285,045
Cash and cash equivalents at the beginning of the period
746,207
461,162
Cash and cash equivalents at end of the period
10
228,790
746,207
Of which restricted cash
2,369
1,918
*See note 11 Business combinations in the consolidated accounts.
Parent company accounts
114 DNO Annual Report 2025
Note 1
Accounting principles
General
The financial statements of DNO ASA (the Company) are
presented in accordance with the Norwegian Accounting Act and
Norwegian accounting standards. The notes are an integral part
of the financial statements. For more information about the
accounting principles, see Note 1 in the consolidated accounts.
Use of estimates
Preparation of the financial statements requires management to
make judgements, estimates and assumptions that affect the
application of policies and reported revenues and expenses,
assets and liabilities and the disclosures. Actual results could
differ from those estimates.
Currency
The financial statements are presented in USD, which is also the
functional currency that best reflects the economic substance of
the underlying events and circumstances relevant to the
Company. Monetary items denominated in foreign currencies are
converted using exchange rates on the balance sheet date.
Realized and unrealized currency gains and losses are included
in the profit or loss. Foreign currency transactions are recorded
using exchange rates on the date of transaction.
Consolidated financial statements
The consolidated financial statements of the Group have been
prepared in accordance with IFRS as adopted by the EU and the
additional disclosure requirements in the Norwegian Accounting
Act and have been presented separately from the parent
company accounts.
Investments in subsidiaries
Investments in subsidiaries are recorded at historical cost. If the
fair value of the investment is lower than the carrying value, an
impairment charge is recorded and a new cost basis of the
investment is established. The impairment charge is reversed if
the basis for the impairment ceases to exist.
Valuation and classification of balance sheet items
Current assets and short-term liabilities include items due less
than one year from drawdown and items related to the operating
cycle. Other assets or liabilities are classified as fixed assets or
long-term liabilities. Other financial investments including
investments in bonds are classified as non-current assets. They
are initially valued at cost price and subsequently may be
impaired to fair value.
Fixed assets
Intangible assets and PP&E are stated at cost, less accumulated
amortization and accumulated impairment charges. Intangible
assets and PP&E are depreciated using a straight-line method
based on estimated useful life. Estimated useful life varies
between three and seven years. Impairment charge is recognized
when the book value exceeds the fair value of the asset.
Share-based payments
Cash-settled share-based payments are recognized in the income
statement as expenses during the vesting period and as a liability.
The liability is measured at fair value and revaluated using the
Black & Scholes pricing model at each balance sheet date and at
the date of settlement, with any change in fair value recognized in
the profit or loss for the period.
Pensions
The Company records pension schemes according to the
Norwegian accounting standard for pension costs. The Company
has contribution plans for employees as provided for under
Norwegian law. For such plans, only the contributions paid during
the period are expensed.
Revenue recognition
Revenues from services are recorded when the service is
rendered.
Allowance for doubtful balances
Trade receivables are recognized and carried at their anticipated
realizable value, which implies that a provision for a loss
allowance on expected credit losses of the receivable is
recognized.
Contingent assets/liabilities
Provisions are made for contingent liabilities that are probable
and quantifiable, while contingent assets are not recognized.
Cash flow statement
The cash flow statement is based on the indirect method. Cash
equivalents include bank deposits.
Dividend
In accordance with Norwegian accounting standards, the
Company recognizes a liability for proposed ordinary dividend and
additional or extraordinary dividend resolved after yearend but
before or on the date of approval of the financial statements by
the Board of Directors. This differs from consolidated accounts
prepared under IFRS, where dividends are recognized as a
liability only after formal approval by the AGM or based on its
authorization.
Hybrid capital
Due to features such as its long maturity, subordination attributes
and the option to defer payments of interest and ultimately not
pay these at maturity date, the hybrid bond has characteristics of
equity. At initial recognition, the net present value of the principal
is presented as debt in the balance sheet. The difference between
the proceeds received and the discounted liability is recorded as
equity. Cash received from bondholders is therefore recognized
primarily as an increase in equity. Interest is not recognized on an
accrual basis; instead, interest paid is accounted for as a
decrease in equity on the interest payment date, consistent with
the accounting treatment of dividends.
Parent company accounts
DNO Annual Report 2025 115
Note 2
Operating revenues
1 January - 31 December
USD thousand
2025
2024
Operating revenues
28,224
25,130
Total operating revenues
28,224
25,130
Operating revenues relate to services provided by the Company to its subsidiaries.
Note 3
Salaries, pensions, remuneration, shares and severance
1 January - 31 December
USD thousand
2025
2024
Payroll and other social expenses
Salaries, bonuses and other salary expenses
-21,705
-14,222
Employer's payroll tax expense
-3,404
-3,031
Pensions
-2,059
-1,936
Other personnel costs
-29
-2,928
Total payroll and other social expenses
-27,197
-22,117
Average number of man-labor years
55
57
Pensions
DNO has a defined contribution scheme for its Norway-based employees that meets the Norwegian requirements for mandatory
occupational pensions (Norwegian:Obligatorisk tjenestepensjon).
Remuneration to the Board of Directors and senior management
Remuneration to the Board of Directors (USD thousand)
Remuneration
Synthetic
shares*
Total
Bijan Mossavar-Rahmani, Executive Chairman
1,371.4
964.6
2,336.0
Gunnar Hirsti, Deputy Chairman
102.6
58.6
161.2
Elin Karfjell, Director
79.8
48.9
128.7
Anita Marie Hjerkinn Aarnæs, Director
79.8
48.9
128.7
Najmedin Meshkati, Director
79.8
53.7
133.5
Grethe Kristin Moen, Director
45.3
-
45.3
Ferris J. Hussein, Director
46.7
-
46.7
Total
1,805.5
1,174.5
2,980.0
* Synthetic share awards that vested during the year
Remuneration to the Board of Directors consists of regular fees (USD 1,742,195) and fees for participation in the board committees (USD
63,261). Separately, a fee of USD 4,297 was paid to Kåre Tjønneland for service on the nomination committee. The Company reimburses
travel expenses and other relevant expenses incurred by the members of the Board of Directors in connection with the performance of
their duties.
Parent company accounts
116 DNO Annual Report 2025
Remuneration to Managing Director and senior management (USD thousand)
Salary
Bonus
Synthetic
shares*
Other
Total
Pension
Chris Spencer, Managing Director
696.0
159.5
1,299.1
85.7
2,240.3
21.3
Erlend Wollan Einum, Chief Business Development Officer
454.2
170.6
-
47.3
672.2
21.3
Halvor Engebretsen, Managing Director DNO Norge AS**
316.1
-
-
29.1
345.2
11.9
Tonje Pareli Gormley, Group General Counsel
462.0
106.1
506.5
51.2
1,125.7
21.3
Sameh Hanna, General Manager Middle East
532.9
98.0
437.5
196.2
1,264.6
-
Linn Hoel, Chief Commercial Officer
448.2
79.4
-
46.3
573.9
21.3
Birgitte Wendelbo Johansen, Chief Financial Officer***
105.8
-
-
9.2
115.0
5.1
Geir Arne Skau, Chief Human Resources and Corporate Services Officer
450.5
53.0
514.0
42.0
1,059.6
21.3
Erling Moen Synnes, Chief Information Officer
290.6
66.8
174.5
25.3
557.2
21.3
* Synthetic share awards that vested during the year.
** Upon completion of the acquisition of Sval Energi, the Company announced that Halvor Engebretsen, Sval Energi’s Chief Executive Officer, would lead
the enlarged North Sea business. Elisabeth Femsteinevik was transferred to another managerial role in the business unit. A remuneration of USD 0.45
million was paid to Elisabeth Femsteinevik in 2025 (not included in the above table).
*** On 24 September 2025, the Company announced the appointment of Birgitte Wendelbo Johansen as Chief Financial Officer, as part of a planned
management transition. In 2025, a total remuneration of USD 1.05 million was paid to Haakon Sandborg (not included in the table above), the former Chief
Financial Officer, which included a severance component. An additional severance payment of USD 0.85 million was made in January 2026.
The following table is an overview of synthetic shares that have been awarded to the directors of the Board and the members of senior
management during the year. For an overview of total synthetic shares of employees at yearend 2025, see Note 4 in the consolidated
accounts.
Movement in synthetic Company shares during 2025
Opening
Closing
Weight.
balance
Movements (full-year)
balance
Unresrict.
average
Number of shares
at 1 Jan
Granted
Settled
at 31 Dec
at 31 Dec
price
Bijan Mossavar-Rahmani, Executive Chairman
749,980
377,468
795,120
332,328
-
12.61
Gunnar Hirsti, Deputy Chairmen
45,530
24,815
48,281
22,064
-
12.61
Elin Karfjell, Director
37,977
20,248
40,272
17,953
-
12.61
Anita Marie Hjerkinn Aarnæs, Director
37,977
20,248
40,272
17,953
-
12.61
Najmedin Meshkati, Director
41,776
20,423
44,246
17,953
-
12.61
Grethe Kristin Moen, Director
-
18,414
-
18,414
-
-
Ferris J. Hussein, Director
-
18,414
-
18,414
-
-
Chris Spencer, Managing Director
1,837,624
220,264
1,146,353
911,535
188,343
13.19
Erlend Wollan Einum, Chief Business Development Officer
271,759
76,757
-
348,516
-
-
Halvor Engebretsen, Managing Director DNO Norge AS
-
224,341
-
224,341
-
-
Tonje Pareli Gormley, Group General Counsel
810,902
123,768
427,450
507,220
-
12.33
Sameh Hanna, General Manager Middle East
396,054
103,992
-
500,046
312,703
-
Linn Hoel, Chief Commercial Officer
226,558
77,387
-
303,945
-
-
Birgitte Wendelbo Johansen, Chief Financial Officer
-
184,295
-
184,295
-
-
Geir Arne Skau, Chief Human Resources and Corporate Services Officer
812,503
81,646
449,999
444,150
-
12.35
Erling Moen Synnes, Chief Information Officer
269,813
39,424
147,094
162,143
-
12.33
The weighted average settlement price for synthetic shares settled during 2025 was NOK 12.79. The weighted average remaining
contractual life of the synthetic shares was 2.8 years.
For more information regarding remuneration of senior management and the Board of Directors, see Company’s remuneration
guidelines that were approved at the 2023 AGM and a separate 2025 remuneration report, both reports published on the Company’s
website.
Parent company accounts
DNO Annual Report 2025 117
Auditor fees
1 January - 31 December
All figures are exclusive of VAT (USD thousand)
2025
2024
Auditor fees
-341
-273
Other audit and related services
-82
-101
Total auditing fees
-423
-374
Tax assistance
-304
-65
Other assistance
-27
-
Total auditor fees
-754
-439
See Note 4 in the consolidated accounts for further information on administrative expenses.
Parent company accounts
118 DNO Annual Report 2025
Note 4
Other operating expenses
1 January - 31 December
USD thousand
2025
2024
Lease expense on buildings and equipment
-2,374
-2,555
Other office expenses
-209
-69
IT expenses
-10,252
-8,913
Travel expenses
-3,045
-1,541
Legal expenses
-214
-331
Consultant fees
-6,192
-2,002
Other general and administrative costs
-1,326
-1,092
Total other operating expenses
-23,612
-16,503
Note 5
Net financial income/expenses
1 January - 31 December
USD thousand
2025
2024
Dividend and group contribution received from group companies
51,268
18,230
Interest income
22,883
28,812
Interest income from group companies
31,098
10,644
Reversal of impairment of financial assets
264,613
34,303
Total financial income
369,863
91,989
Interest expenses
-83,332
-51,132
Interest expenses group companies
-15,672
-4,766
Loss on foreign exchange
-
-2,741
Other financial expenses
-8,641
-223
Amortization of borrowing issue costs
-6,374
-3,834
Total financial expenses
-114,019
-62,696
Net financial income/expenses
255,844
29,293
In 2025, DNO ASA received group contributions from the following subsidiaries: DNO Technical Services AS (USD 1.0 million), DNO
Iraq AS (USD 27.3 million), DNO Mena AS (USD 6.3 million) and DNO Norge AS (USD 16.7 million).
The increase in interest received from the group companies was primarily driven by new loans provided to subsidiaries operating on the
NCS.
The increase in financial expenses in 2025 was mainly driven by higher interest expenses as a result of increased debt, as well as
amortization of bond issue costs, including the expensing of issuance costs and the call premium in relation to redemption of DNO04.
In 2025 the Company reversed a previous impairment charge related to shares in DNO North Sea Limited of USD 258.6 million. The
shares have subsequently been given as a contribution in kind to DNO North Sea Holding AS. See Note 8 for an overview of shares in
subsidiaries as of 31 December 2025.
Parent company accounts
DNO Annual Report 2025 119
Note 6
Taxes
Tax income/expense
1 January - 31 December
USD thousand
2025
2024
Change in deferred taxes
-
-
Income tax receivable/payable
-
-
Tax income/expense
-
-
Reconciliation of tax income/expense
1 January - 31 December
USD thousand
2025
2024
Profit/loss before income tax
231,610
14,123
Expected income tax according to nominal tax rate of 22 percent
-50,954
-3,107
Foreign exchange variations between functional and tax currency
-5,271
-805
Adjustment of deferred tax assets not recognized
2,495
-3,566
Impairment financial assets
54,584
7,985
Other items
-854
-507
Tax income/expense
-
-
Effective income tax rate
0%
0%
Tax effects of temporary differences and losses carried forward
Years ended 31 December
USD thousand
2025
2024
Losses carried forward
83,169
67,741
Non-deductible interests carried forward
25,778
22,885
Other temporary differences
-270
489
Deferred tax assets/liabilities
108,677
91,115
Valuation allowance
-108,677
-91,115
Net deferred tax assets/liabilities
-
-
Recognized deferred tax assets
-
-
Recognized deferred tax liabilities
-
-
The corporate tax rate in Norway is 22 percent.
The carry forward period for unused losses in Norway is indefinite. Non-deductible interest expense can be carried forward for a period
of up to 10 years and will expire in the period 2026 to 2031. A deferred tax asset has not been recognized for these losses as there is
uncertainty regarding future taxable profits. The losses cannot be used towards petroleum activities on the NCS. The petroleum
activities carried out abroad by Norwegian subsidiaries are tax exempt in Norway and under the exemption method dividends from
subsidiaries are not taxable in Norway.
Parent company accounts
120 DNO Annual Report 2025
Note 7
Property, plant and equipment/Intangible assets
Intangible
USD thousand
assets
PP&E
Total
Costs as of 1 January 2025
15,626
5,221
20,847
Additions
-
243
243
Costs as of 31 December 2025
15,626
5,464
21,090
Accumulated depreciation as of 1 January 2025
-13,799
-3,942
-17,741
Depreciation
-1,243
-406
-1,649
Accumulated depreciation and impairments as of 31 December 2025
-15,042
-4,348
-19,390
Book value as of 31 December 2025
584
1,116
1,700
Book value as of 31 December 2024
1,827
1,273
3,100
Intangible assets and PP&E are depreciated using the linear method based on estimated useful life of three to seven years.
Note 8
Investment in shares
Ownership
Book value
and voting
of shares
Subsidiaries owned by the Company
Office
interest
USD 1,000
DNO Yemen AS
Oslo
100 %
-
DNO UK Limited
United Kingdom
100 %
-
DNO Iraq AS
Oslo
100 %
279,848
DNO Mena AS
Oslo
100 %
1,904
DNO Technical Services AS
Oslo
100 %
4,982
Mondoil Enterprises LLC
United States
100 %
78,976
DNO North Sea Holding AS
Oslo
100 %
1,000,321
DNO Venture AS
Oslo
100 %
8
DNO Algeria AS
Oslo
100 %
7
DNO Middle East and Africa AS
Oslo
100 %
7
Total
1,366,052
Parent company accounts
DNO Annual Report 2025 121
Note 9
Other receivables
Years ended 31 December
USD thousand
2025
2024
Prepayments and accrued income
6,156
5,837
Other short-term receivables
466
982
Other receivables
6,622
6,819
Note 10
Cash and cash equivalents
Years ended 31 December
USD thousand
2025
2024
Cash and cash equivalents, restricted
2,369
1,918
Cash and cash equivalents, non-restricted
226,421
744,289
Total cash and cash equivalents
228,790
746,207
Restricted cash relates to employees' tax withholdings and deposits for rent.
Non-restricted cash is mainly related to bank deposits in USD as of 31 December 2025.
Note 11
Equity
Share capital
Share
Hybrid
Retained
USD thousand
registered
premium
capital
earnings
Total equity
Shareholders' equity as of 1 January 2024
32,858
343,620
-
211,202
587,680
Purchase of treasury shares
-
-
-
-
-
Dividend
-
-
-
-78,775
-78,775
Additional dividend
-
-
-
-26,860
-26,860
Profit/loss for the year
-
-
-
14,123
14,123
Cancellation of treasury shares
-
-
-
-
-
Shareholders' equity as of 31 December 2024
32,858
343,620
-
119,690
496,168
Shareholders' equity as of 1 January 2025
32,858
343,620
-
119,690
496,168
Purchase of treasury shares
-
-
-
-
-
Sale of treasury shares
-
-
-
-
-
Share capital increase
-
-
-
-
-
Hybrid bond issue
-
-
393,494
-
393,494
Dividend
-
-
-21,500
-101,121
-122,621
Additional dividend
-
-
-
-36,276
-36,276
Profit/loss
-
-
21,500
210,110
231,610
Cancellation of treasury shares
-
-
-
-
-
Shareholders' equity as of 31 December 2025
32,858
343,620
393,494
192,403
962,375
See Note 16 in the consolidated accounts for further information regarding the Company’s equity and shareholders.
See Note 17 in the consolidated accounts for further information regarding the hybrid capital.
During 2025, the Board of Directors based on AGM authorizations, approved four dividend distributions, respectively two with NOK
0.3125 and two with NOK 0.375 per share, each. The dividends were paid in February (accrued in 2024 accounts), June, September
and November 2025.
On 5 February 2026, the Company announced that pursuant to the authorization granted at the 2025 AGM, the Board of Directors had
approved a dividend payment of NOK 0.375 per share which was made on 25 February 2026. The Company has made an accrual for
this dividend in the parent company accounts for 2025.
Parent company accounts
122 DNO Annual Report 2025
Note 12
Guarantees, leasing liabilities and commitments
See Note 24 in the consolidated accounts for information regarding other guarantees and commitments.
The Company’s future minimum lease payments under non-cancellable operating leases are related to office rent. The lease period
expires on 31 December 2031 and the yearly rent is USD 2.0 million.
Note 13
Interest-bearing liabilities
Effective
interest
Fair value
Carrying amount
Ticker
Facility
Facility
Interest
rate
USD thousand
OSE
currency
amount
(percent)
Maturity
(percent)
2025
2024
2025
2024
Non-current
Bond loan (ISIN NO0011088593)
DNO04
USD
350,000
7.875
09.09.26
8.8
-
352,405
-
350,000
Bond loan (ISIN NO0013243766)
DNO05
USD
400,000
9.250
04.06.29
10.0
425,060
410,020
400,000
400,000
Bond loan (ISIN NO0013511113)
DNO06
USD
600,000
8.500
27.03.30
9.1
623,406
-
600,000
-
Hybrid bond (ISIN NO0013582627) liability portion
DNO07
USD
400,000
10.750
17.06.85
-
89
-
85
-
Capitalized borrowing issue costs
-
-
-11,015
-8,626
Total non-current interest-bearing liabilities
1,048,555
762,425
989,070
741,374
See Note 18 in the consolidated accounts for further information on interest-bearing liabilities.
Note 14
Current liabilities
Years ended 31 December
USD thousand
2025
2024
Trade payables
1,360
1,856
Public duties payable
2,000
1,709
Accrued expenses and other current liabilities
18,238
16,436
Trade payables and provisions for other liabilities and charges
21,598
20,001
Accrued expenses and other current liabilities include accrued interest for bond loans of USD 3.1 million (USD 4.3 million in 2024) and
accruals for incurred costs of USD 15.1 million (USD 12.2 million in 2024).
Note 15
Financial instruments
See Note 23 in the consolidated accounts for information on financial instruments.
Parent company accounts
DNO Annual Report 2025 123
Note 16
Related party disclosure
Expenses in the parent company are allocated to the subsidiaries based on their proportional use of the services provided by the parent
company.
See Note 18 for intercompany transactions during the year and balances at yearend.
Note 17
Earnings per share
1 January - 31 December
2025
2024
Net profit/loss attributable to ordinary equity holders of the parent (USD thousand)
231,610
14,123
EPS adjustment for calculated interest/dividend on hybrid capital (USD thousand)
21,500
-
Weighted average number of ordinary shares (excluding treasury shares) (millions)
975.00
975.00
Earnings per share, basic (USD)
0.22
0.01
Earnings per share, diluted (USD)
0.22
0.01
The Company did not have any potential dilutive shares at yearend 2025.
Parent company accounts
124 DNO Annual Report 2025
Note 18
Intercompany
Long-term intercompany receivables/liabilities
Years ended 31 December
Functional
Receivables
Liabilities
USD thousand
currency
2025
2024
2025
2024
DNO Iraq AS
USD
-
-
224,498
138,733
DNO Mena AS
USD
2,937
3,022
-
-
DNO Norge AS*
USD
627,885
19,617
-
-
DNO North Sea Limited
USD
-
83,282
-
-
DNO Yemen AS
USD
-
-
16,779
-
Other
USD
83
-
200
-
Total long-term intercompany receivables and liabilities
630,905
105,921
241,477
138,733
The intercompany interest rates used by DNO ASA and its subsidiaries are set at arm's length.
Short-term intercompany receivables/liabilities
Years ended 31 December
Functional
Receivables
Liabilities
USD thousand
currency
2025
2024
2025
2024
DNO Iraq AS
USD
5,327
5,649
-
-
DNO Mena AS
USD
165
123
-
-
DNO Norge AS*
USD
17,141
2,436
409
-
DNO North Sea Limited
GBP
40
1,972
-
-
DNO North Sea (U.K.) Limited
GBP
5
44
-
-
DNO Technical Services AS
USD
55
217
459
-
West Limited
USD
-
-
-
7,067
Other
USD
135
10
11
34
Total short-term intercompany receivables and liabilities
22,868
10,451
879
7,101
Intercompany sales/purchases
1 January - 31 December
Functional
Sales
Purchases
USD thousand
currency
2025
2024
2025
2024
DNO Iraq AS
USD
19,079
17,760
-
-59
DNO Norge AS*
USD
7,510
5,651
-1,263
-1,904
DNO North Sea Limited
USD
294
171
-
-
DNO North Sea (U.K.) Limited
USD
-
122
-
-
West Limited
USD
-
38
-
-
South Limited
USD
-
20
-
-
DNO Technical Services AS
USD
1,038
944
-2,690
-2,351
DNO Yemen AS
USD
300
341
-
-
Other
USD
3
83
-45
-
Total intercompany sales/purchases
28,224
25,130
-3,998
-4,314
The Company's other related parties consist of other subsidiaries in the Group.
Parent company accounts
DNO Annual Report 2025 125
Intercompany interest income/expense, dividend and group contribution
1 January - 31 December
Functional
Interest income, dividend
and group contribution
Interest expense
USD thousand
currency
2025
2024
2025
2024
DNO Technical Services AS
USD
988
154
-
-
DNO Iraq AS
USD
27,256
8,364
-15,392
-4,206
DNO Mena AS
USD
6,302
351
-
-
DNO Norge AS*
USD
33,729
12,078
-
-
DNO North Sea Holding AS
USD
8,498
-
-
-
DNO North Sea Limited
USD
5,594
7,927
-
-
West Limited
USD
-
-
-280
-163
Other
USD
-
-
-
-397
Total intercompany interest income/expense
82,367
28,874
-15,672
-4,766
See Note 5 for more details on financial items.
* See Note 26 in the consolidated accounts for further information regarding the merger between DNO Norge AS and Sval Energi AS.
Note 19
Significant events after the reporting date
See Note 29 in the consolidated accounts for events after the balance sheet date.
Country-by-country report
126 DNO Annual Report 2025
Country-by-country report 2025
In line with the Norwegian Accounting Act and Norwegian Securities Trading Act, the Company has prepared a country-by-country
report for its activities in the extractive industries, including information on investments, revenue, production, cost and the number of
employees in each country of operation by subsidiary. Among other requirements, total payments to governmental bodies during the
financial year must be broken down by country and by payment type.
Additional information regarding the Group's performance in each geographic area can be found in Note 2 Segment information. A
complete list of the Group's oil and gas license portfolio is disclosed in Note 28.
(USD million)
License, legal entity level and
country/region of operation
1
Country
of
incorpor-
ation
2
Royalty
3
Net
produc-
tion
4
Corporate
income
tax
5
Special
tax
6
Area
fee
7
Contractual
bonuses
8
Invest-
ments
9
Revenue
10
Expend-
iture
11
Net inter-
comp-
any
interest
12
Profit/los
s before
tax
10
Tax
income/e
xpense
13
Equity
10
Employees
14
Tawke
-82.7
52,569
-
-371.6
-0.0
-0.9
-
-
-
-
-
-
-
Baeshiqa
-0.0
-
-
-0.0
-0.0
-0.6
-
-
-
-
-
-
-
DNO Iraq AS
Norway
-
-
-
-
-
-
21.3
211.2
-204.9
15.4
0.7
-0.0
787.5
Total Kurdistan region of Iraq
-82.7
52,569
-
-371.6
-0.1
-1.6
21.3
211.2
-204.9
15.4
0.7
-0.0
787.5
795
DNO Norge AS
Norway
-
51,008
-91.7
-172.5
-0.4
-3.9
640.0
1,154.1
-852.9
-24.6
276.5
-268.6
399.9
Total Norway (NCS)
-
51,008
-91.7
-172.5
-0.4
-3.9
640.0
1,154.1
-852.9
-24.6
276.5
-268.6
399.9
236
DNO North Sea (U.K.) Limited
UK
-
365
-
-
-0.1
-
26.0
8.4
-18.0
-
-10.9
-
-266.3
DNO North Sea (ROGB) Limited
UK
-
71
-
-
-
-
1.5
1.4
-2.5
-
-4.0
-
-92.7
DNO Exploration UK Limited
UK
-
3,366
-
-
-
-
-2.9
84.8
-38.0
-1.5
45.6
-32.6
36.9
Total United Kingdom (UKCS)
-
3,803
-
-
-0.1
-
24.6
94.6
-58.4
-1.5
30.7
-32.6
-322.1
-
DNO Yemen AS
Norway
-
-
-
-
-
-
-
0.0
18.0
-
20.6
-
11.2
Total Yemen
-
-
-
-
-
-
-
0.0
18.0
-
20.6
-
11.2
2
DNO Mena AS
Norway
-
-
-
-
-
-
-
-
-0
-
1.5
-
2.9
DNO ASA
Norway
-
-
-
-
-
-
1.2
28.2
-52.0
15.4
226.6
-
994.0
57
DNO Technical Services AS
Norway
-
-
-
-
-
-
-
23.8
-23.8
-
0.1
-0.1
3.3
67
DNO North Sea Limited
UK
-
-
-
-
-
-
-0.0
-
-0.3
-4.9
16.1
-
5.1
2
DNO UK Limited
UK
-
-
-
-
-
-
-
-
-0.0
-
-0.0
-
-0.2
DNO North Sea Holding AS
Norway
-
-
-
-
-
-
-
-
-0.0
-
0.0
-
1,000.4
Mondoil Enterprises LLC
US
-
3,287
-
-
-
-
-
-
-0.0
-
2.5
-
70.3
Other *
-
-
-
-
-
-
-
-
-0.1
0.3
0.3
-
-
Total Other
-
3,287
-
-
-
-
1.2
52.0
-76.2
10.9
247.1
-0.1
2,075.8
126
Eliminations/ Intercompany
-
0.0
-
-
-
-
14.1
-38.0
132.9
-0.1
-178.2
-121.3
-1,623.8
GRAND TOTAL
-82.7
110,667
-91.7
-544.1
-0.5
-5.5
701.2
1,474.0
-1,041.5
-
397.4
-422.6
1,328.5
1,159
* Other includes subsidiaries of DNO ASA that did not hold oil and gas licenses during the year and equity accounted investments.
1 Country/region of operation is the country where the company carries out its main activity
2 Country of incorporation is the jurisdiction in which the legal entity is registered
3 Royalty is a fee payable to the Kurdistan Regional Government (KRG) before distribution of cost oil and profit oil
4 Net production in barrels of oil equivalent per day (boepd)
5 Corporate tax received/paid during the year
6 Special tax received/paid during the year. In Kurdistan, special tax represents Group's share of government take
7 Area fee in Kurdistan and Norway
8 Contractual bonuses include environment funds, training funds and rental fees in Kurdistan. In Norway, the amount is related to environmental fund (NOx fund)
9 Investments as presented in the consolidated financial statements and include estimate changes in asset retirement obligations
10 Revenues, expenditure, profit/loss before tax and equity at entity level in accordance with the accounting principles in the consolidated financial statements and
include intercompany transactions. Audit of statutory financial statements has not been completed at the time of issuing this report
11 Expenditure as presented in accordance with the accounting principles in the consolidated financial statements and includes cost of goods sold, administrative
expenses, other operating expenses and exploration costs expensed including intercompany transactions
12 Net intercompany interest income/expense to/from Group companies incorporated in another jurisdiction
13 Tax income/expense for the year
14 Number of employees at yearend
Auditor’s report
DNO Annual Report 2025 127
Auditor’s report 2025
Auditor’s report
128 DNO Annual Report 2025
Auditor’s report 2025
Auditor’s report
DNO Annual Report 2025 129
Auditor’s report 2025
Auditor’s report
130 DNO Annual Report 2025
Auditor’s report 2025
Auditor’s report
DNO Annual Report 2025 131
Auditor’s report 2025
Auditor’s report
132 DNO Annual Report 2025
Auditor’s report 2025
Auditor’s report
DNO Annual Report 2025 133
Auditor’s report 2025
Auditor’s report
134 DNO Annual Report 2025
Sustainability auditor’s limited assurance report 2025
Auditor’s report
DNO Annual Report 2025 135
Sustainability auditor’s limited assurance report 2025
Auditor’s report
136 DNO Annual Report 2025
Sustainability auditor’s limited assurance report 2025
Auditor’s report
DNO Annual Report 2025 137
Sustainability auditor’s limited assurance report 2025
Alternative performance measures
Alternative performance measures
138 DNO Annual Report 2025
DNO discloses alternative performance measures (APMs) as a supplement to the Group’s financial statements prepared based on
issued guidelines from the European Securities and Markets Authority (ESMA). DNO believes that the APMs provide useful
supplemental information to management, investors, securities analysts and other stakeholders and are meant to provide an enhanced
insight into the financial development of DNO’s business operations, financing and future prospects and to improve comparability
between periods. Reconciliations of relevant APMs, definitions and explanations of the APMs are provided below.
EBITDA
USD million
2025
2024
Revenues
1,474.0
666.8
Lifting costs
-376.4
-175.5
Tariffs and transportation
-181.5
-49.4
Movement in overlift/underlift
86.0
2.1
Share of profit/loss from Joint Venture
7.7
3.3
Exploration expenses
-136.5
-88.9
Administrative expenses
-48.6
-23.5
Other operating income/expenses
18.8
-1.6
EBITDA
843.6
333.3
EBITDAX
USD million
2025
2024
EBITDA
843.6
333.3
Exploration expenses
136.5
88.9
EBITDAX
980.0
422.2
Lifting costs
2025
2024
Lifting costs (USD million)
-376.4
-175.5
Net production (MMboe)*
39.2
27.1
Lifting costs (USD/boe)
9.6
6.5
* For accounting purposes, the net production from equity accounted investments is not included.
Capital expenditures
USD million
2025
2024
Purchases of intangible assets
-130.3
-87.2
Purchases of tangible assets
-487.7
-199.8
Capital expenditures*
-618.0
-287.0
* Excluding estimate changes on asset retirement obligations.
Operational spend
USD million
2025
2024
Lifting costs
-376.4
-175.5
Tariff and transportation expenses
-181.5
-49.4
Exploration expenses
-136.5
-88.9
Exploration cost previously capitalized carried to cost (Note 5 in the consolidated accounts)
62.8
37.7
Capital expenditures
-618.0
-287.0
Payments for decommissioning
-33.2
-4.9
Operational spend
-1282.8
-568.0
Alternative performance measures
Alternative performance measures
DNO Annual Report 2025 139
Equity
USD million
2025
2024
Total equity
1,328.5
1,080.0
Total assets
5,998.3
2,966.1
Equity ratio
22.1%
36.4%
Free cash flow
USD million
2025
2024
Net cash from/used in operating activities*
590.6
413.0
Capital expenditures
-618.0
-287.0
Payments from license transactions
7.4
-84.8
Payments for decommissioning
-33.2
-4.9
Equity contribution into Joint Venture (Note 12)
-10.5
-9.4
Dividends from Joint Venture (Note 12)
27.2
31.8
Free cash flow
-36.6
58.8
Net debt
USD million
2025
2024
Cash and cash equivalents
453.7
899.0
Bond loans and reserve based lending
1,339.5
800.0
Net cash/debt (-)
-885.9
99.0
Reserve Life Index (R/P)*
2025
2024
Net production (MMboe)
40.4
28.3
1P reserves
264.1
178.9
2P reserves
390.1
281.9
3P reserves
478.0
340.1
1P Reserve Life Index (R/P in years)
5.3
6.3
2P Reserve Life Index (R/P in years)
7.8
10.0
3P Reserve Life Index (R/P in years)
9.6
12.0
* Net production and net reserves include West Africa segment (equity accounted investment).
Definitions and explanations of APMs
The Company has defined and explained the purpose of the following APMs:
EBITDA (Earnings before interest, tax, depreciation and amortization)
EBITDA, as reconciled above, can be found by excluding the DD&A and impairment of oil and gas assets from the profit/loss from
operating activities. Management believes that this measure provides useful information regarding the Group’s ability to fund its capital
investments and provides a helpful measure for comparing its operating performance with those of other companies.
EBITDAX (Earnings before interest, tax, depreciation, amortization and exploration expenses)
EBITDAX, as reconciled above, can be found by excluding the exploration expenses from the EBITDA. Management believes that this
measure provides useful information regarding the Group’s profitability and ability to fund its exploration activities and provides a helpful
measure for comparing its performance with those of other companies
Alternative performance measures
Alternative performance measures
140 DNO Annual Report 2025
Lifting costs (USD/boe)
Lifting costs comprise of expenses related to the production of oil and gas, including operation and maintenance of installations, well
intervention activities and insurances. DNO’s lifting costs per boe are calculated by dividing DNO’s share of lifting costs across
producing assets by net production for the relevant period. Management believes that the lifting cost per boe is a useful measure
because it provides an indication of the Group’s level of operational cost effectiveness between time periods and with those of other
companies.
Capital expenditures
Capital expenditures comprise the purchase of intangible and tangible assets irrespective of whether paid in the period. Management
believes that this measure is useful because it provides an overview of capital investments used in the relevant period.
Operational spend
Operational spend is comprised of lifting costs, tariff and transportation expenses, exploration expenses, capital expenditures and
payments for decommissioning. Management believes that this measure is useful because it provides a complete overview of the
Group’s total operational costs, capital investments and payments for decommissioning used in the relevant period.
Equity
Management uses total equity and equity ratio to monitor capital and financial covenants. The equity ratio is calculated by dividing total
equity by the total assets.
Free cash flow
Free cash flow comprises net cash from/used in operating activities less capital expenditures, payments for decommissioning and net
cash received/paid from equity accounted investments. Management believes that this measure is useful because it provides an
indication of the profitability of the Group’s operating activities excluding the non-cash items of the income statement and includes
operational spend. This measure also provides a helpful measure for comparing with that of other companies.
Net debt
Net cash/debt comprises cash and cash equivalents less bond loans, reserve-based lending facility and offtake financing facilities.
Substantially all of the hybrid bond is classified as equity under IFRS and is therefore not included in net cash/debt. Management
believes that net debt is a useful measure because it provides indication of the minimum necessary debt financing (if the figure is
negative) to which the Group is subject at the balance sheet date.
Reserve Life Index
The Reserve Life Index measures the length of time it will take to deplete a resource at given production rates. The ratio is used to
measure how long an oil and gas field will last, or, more precisely, how long the Group’s oil and gas reserves will last and is calculated
by dividing the quantity of reserves by the production of petroleum from those reserves during the relevant period.
Glossary and definitions
Glossary and definitions
DNO Annual Report 2025 141
AED
United Arab Emirates dirham
AGM
Annual General Meeting
ARO
Asset retirement obligation
ASRR
Annual Statement of Reserves and
Resources
bbls
Barrels of oil
Board of Directors
The Board of Directors of the
Company
boe
Barrels of oil equivalent
bopd or boepd
Barrels of oil per day or barrels of oil
equivalent per day
CAPM
Capital Asset Pricing Model
Company
DNO ASA
Contingent resources
Quantities of petroleum estimated, as
of a given date, to be potentially
recoverable from known
accumulations but not currently
considered to be commercially
recoverable or where a field
development plan has not yet been
submitted
Contractor
A company or companies operating in
a country under a PSC on behalf of
the host government for which it
receives either a
share of production or a fee
Crude oil, crude or oil
A mixture that consists mainly of
pentanes and heavier hydrocarbons,
which may contain sulphur and other
non-hydrocarbon compounds, that is
recoverable at a well from an
underground reservoir and that is
liquid at the conditions under which its
volume is measured or estimated
D&M
DeGolyer and MacNaughton
DD&A
Depreciation, depletion and
amortization
DMA
Double materiality assessment
DNO
DNO ASA and its consolidated
subsidiaries
Group
The Company and its consolidated
subsidiaries
E&P
Exploration and production
EBITDA
Earnings before interest, tax,
depreciation and amortization
EBITDAX
Earnings before interest, tax,
depreciation, amortization and
exploration expenses
ESMA
European Securities and Markets
Authority
ESRS
European Sustainability Reporting
Standards
EU
The European Union
EUR
Euros
Farm-in
To acquire an interest in a license
from another party
Farm-out
To assign an interest in a license to
another party
Gas
A mixture of light hydrocarbons that
exist either in the gaseous phase or in
solution in crude oil in reservoirs but
are gaseous at atmospheric conditions
GBP
Pound sterling
HSE
Health, safety and environment
HSSE
Health, safety, security and
environment
Hydrocarbons
Compounds containing only the
elements of hydrogen and carbon,
which may exist as solid, liquid or gas
IAS/IFRS
International Financial Reporting
Standards
IQD
Iraqi dinar
IRO
Impact, risk and opportunity
KRG
Kurdistan Regional Government
Kurdistan
Kurdistan region of Iraq
License or permit
Area of specified size licensed to a
company by the government for
production of oil or gas
MMboe
Million barrels of oil equivalent. Gas
volumes converted to oil equivalent
using factor 5.61 mscf/boe
Mscf
Thousand standard cubic feet
NCS
Norwegian Continental Shelf
Net entitlement
The portion of future production (and
thus resources) legally accruing to a
contractor under the terms of the
development and production contract
Net entitlement reserves
Reserves based on net entitlement
production
Net production
Production based on the participation
interest in the license
Net reserves and resources
Reserves and resources based on the
participation interest in the license
NGL
Natural gas liquids
NOK
Norwegian kroner
Glossary and definitions
Glossary and definitions
142 DNO Annual Report 2025
Norwegian Public Limited Liability
Companies Act
The Norwegian Public Limited Liability
Companies Act of 13 June 1997 no.
45 (Norwegian: Allmennaksjeloven)
Operator
A company responsible for managing
an
exploration, development, or
production
operation
Oslo Stock Exchange
Oslo Børs ASA (Euronext Oslo Børs)
Partner
In a license context, a company that
holds a participating interest in a
license together with the Company
and is typically responsible for its
participating interest share of funding
exploration, development, production
and decommissioning costs and
entitled to a corresponding share of
the profits or production
Petroleum
A complex mixture of naturally
occurring hydrocarbon compounds
found in rocks
PP&E
Property, plant and equipment
Profit oil
Production remaining after royalty and
cost oil, which is split between the
government and the contractors under
a Production Sharing Contract
PSC
A Production Sharing Contract or PSC
is an agreement between a contractor
and a host government, whereby the
contractor bears all risk and cost for
exploration, development and
production in return for a stipulated
share of production
Royalty
Royalty refers to payments that are
due to the host government or mineral
owner in return for depletion of the
reservoirs and the producer contractor
for having access to the petroleum
resources
SPE
Society of Petroleum Engineers
Sval Energi
Sval Energi Group AS and its
subsidiaries acquired by DNO in June
2025, which have subsequently been
merged into other group companies or
renamed
UAE
The United Arab Emirates
UK
The United Kingdom
UKCS
United Kingdom Continental Shelf
USD
United States Dollar
WACC
Weighted Average Cost of Capital
Glossary and definitions
Glossary and definitions
DNO Annual Report 2025 143
DNO ASA
DOKKVEIEN 1 / AKER BRYGGE / 0250 OSLO / NORWAY / PHONE + 47 23 23 84 80 / www.dno.no
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