Var Energi Greenlights Gjoa Projects
Vår Energi ASA and its partners have made a final investment decision to proceed with the Gjøa Subsea Projects on Norway's side of the North Sea, targeting about 76 million barrels of oil equivalent gross proven and probable reserves.
The development will tie back the Cerisa, Gjøa Nord and Ofelia discoveries to the existing Gjøa and Duva infrastructure.
"First production is expected from Cerisa in the third quarter of 2027, followed by start-up from Ofelia and Gjøa Nord in the second half of 2028", Vår Energi said in a press release.
"The project contributes to extending the economic lifetime of the area from the early 2030s to around 2040, while strengthening the basis for further tie-back developments and near-field exploration", the company added.
"By increasing throughput for the Gjøa asset, the project is expected to reduce unit production costs, improve the economics of existing fields and support further resource development in the broader Gjøa area".
Vør Energi chief operating officer Torger Rød said, "The Gjøa Subsea Projects demonstrate how we continue to develop our core hubs through efficient tie-back developments, leveraging existing infrastructure and exploration success to create long-term value. The project strengthens Gjøa as a long-term production hub and supports our target to produce more than 400 thousand barrels of oil equivalent per day long-term".
Vår Energi operates the Gjøa Subsea Projects. Currently it owns a 40 percent stake in Ofelia, 30 percent in Cerisa and 30 percent in Gjøa Nord.
In production license (PL) 929, which covers Ofelia, Harbour Energy Norge AS and Pandion Energy AS each own 20 percent. Aker BP ASA and DNO Norge AS each own 10 percent.
In the Cerisa license (PL636), INPEX Idemitsu Norge AS and ORLEN Upstream Norway AS each hold 30 percent. DNO owns 10 percent.
In the Gjøa Nord license (PL153), Petoro AS has 30 percent, Harbour 28 percent and OKEA ASA 12 percent.
Ofelia and Gjøa Nord's ownership structures will change following a series of transactions recently signed by Vår Energi to bolster its position around the Gjøa infrastructure and refocus investment on "high-value opportunities".
On June 18 Vår Energi announced agreements to acquire Pandion's remaining interests offshore Norway, swap stakes with DNO 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.
"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.
Vår Energi also 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, from DNO. 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 interest in the field.
In exchange DNO will acquire a 5 percent stake in the Gjøa field (PL153) in the North Sea.
"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", Vår Energi said.
On the other hand 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
What do you think? We’d love to hear from you, join the conversation on the
Rigzone Energy Network.
The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.