Var Energi Realigns Stakes offshore Norway
Vår Energi ASA has announced a series of acquisitions and divestments of production and exploration assets on the Norwegian continental shelf to refocus investment on "high-value opportunities".
It has entered into agreements to acquire Pandion Energy AS's remaining interests offshore Norway, swap stakes with DNO ASA and farm down its operated Goliat and Fenja fields.
"Through the acquisition of Pandion's portfolio, Vår Energi adds a 10 percent interest in the Nova field (PL418), a 20 percent interest in the Ofelia development (PL929), a 49 percent interest in the Sierra Solberg discovery (PL263), and a portfolio of exploration licenses in the Gjøa area, including Annabelle (PL929), which is planned to be drilled later this year", Vår Energi said in an online statement.
Vår Energi already owns 40 percent in Production License (PL) 929, which includes the Ofelia discovery of 2022, on Norway's side of the North Sea.
"The transaction, with a cash consideration of $110 million, strengthens Vår Energi's position around the Gjøa infrastructure, increasing ownership across producing assets and key development projects, including Nova, which is currently the only producing asset tied to the infrastructure where the Company does not currently hold an ownership interest", Vår Energi said. "This adds near-term production while reinforcing the Company's strategy of optimizing ownership around existing hubs".
All Pandion workers will be offered to transfer to Vår Energi, Pandion said separately.
With DNO, Vår Energi agreed to buy a 15 percent stake in the Ringhorne North discovery of 2024 (PL956 in the North Sea) and 5 percent in Nova, also in the North Sea. Vår Energi currently owns 65 percent in PL956. The Nova portions of Vår Energi's agreements with Pandion and DNO will give Vår Energi a 15 percent stake in the field.
In exchange DNO will acquire a 5 percent stake in the Gjøa field (PL153) in the North Sea, where Vår Energi currently owns 30 percent as operator.
The transaction with DNO involves a "small balancing payment", Vår Energi said.
"The transaction strengthens the Company's position in the strategically important Balder area, aligning ownership interests and adding exposure to both near-term developments and producing assets", it said.
Concurrently Vår Energi announced a positive FID (final investment decision) on the Balder Next New Wells project, a tieback to the recently started-up Jotun floating production, storage and offloading vessel.
Expected to begin production 2027, the 7-well project will develop 86 million barrels of oil equivalent (MMboe) gross proven and probable reserves.
On the divestment side of the transactions, Vår Energi will transfer 20 percent in Goliat to Poland's state-controlled ORLEN SA and 25 percent in Fenja to Concedo AS for a total of up to $350 million.
"Following completion, the Company will retain a 45 percent interest in Goliat and 50 percent in Fenja and remain operator of both fields", Vår Energi said. "The Goliat field in the Barents Sea remains a key hub and of strategic importance to Vår Energi.
"The divestments allow the Company to accelerate value creation from recent exploration success while maintaining operatorship and exposure to future value creation".
It expects to complete the transactions by yearend, subject to regulatory approvals.
"The transactions have minimal impact on 2026 production", Vår Energi said. "The Company's target of producing above 400 thousand barrels of oil equivalent per day longer term remains firm".
To contact the author, email jov.onsat@rigzone.com
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