TechnipFMC Norge, a subsidiary of the UK-headquartered energy technology provider TechnipFMC, and Vår Energi, a Norwegian oil and gas player, have struck a deal related to a model that will be used to bring to life future subsea hydrocarbon developments in the Gjøa area in the North Sea, off the coast of Norway.
Vår Energi’s five-year collaboration agreement with the possibility of extension that has been reached on behalf of the license owners in the Gjøa Nord , Cerisa , and Ofelia discoveries with TechnipFMC Norge covers the delivery of subsea projects, utilizing the latter’s integrated commercial model for engineering, procurement, construction, and installation (EPCI) scope of work.
While partners in the PL153 Gjøa/Gjøa Nord license are Vår Energi (operator, 30%), Petoro (30%), Harbour Energy Norge (28%), and OKEA (12%); partners in the PL 929 Ofelia license are Vår Energi (operator, 40%), Harbour Energy Norge (20%), Pandion Energy (20%), DNO (10%), and AkerBP (10%); and partners in the PL636 Duva/Cerisa license are Vår Energi (operator, 30%), ORLEN (30%), INPEX Idemitsu (30%), and Sval Energi (10%).
The Vår Energi-TechnipFMC agreement pertains to the integrated execution of both subsea production systems (SPS) and subsea umbilicals, risers, and flowlines (SURF) work scopes for the three discoveries, which are estimated to contain up to 110 million barrels of oil equivalent gross.
Torger Rød , COO of Vår Energi, commented: “We have high expectations for further development around the Gjøa field, which is one of Vår Energi’s core areas. Currently, we are maturing the three oil and gas discoveries for a planned subsea development that will be tied back to the Gjøa platform. Through the agreement with TechnipFMC, the goal is to achieve faster and more competitive development.”
With a final investment decision (FID) planned in 2026, the current plan is to coordinate the Gjøa Nord, Cerisa, and Ofelia developments, if the license partners decide to move forward with these discoveries to realize synergies in procurement, engineering, drilling, installation, and project follow-up.
Rød added: “Through this agreement, we will leverage TechnipFMC’s extensive experience and expertise on the Norwegian continental shelf and in the Gjøa area in particular. We look forward to continuing the collaboration. Together, we will optimize the development solution and ensure efficient project execution in order to maximize value creation.”
While one part of Vår Energi’s Balder oil project in the North Sea is scheduled to come online this year, the Norwegian player and its partner, Kistos Energy , recently took a final investment decision (FID) to start production from another segment of the same asset next year.
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The Norwegian Offshore Directorate warned last year that over $1.42 trillion was at risk of being lost if Norway did nothing to ramp up its search for remaining hydrocarbon resources on the Norwegian Continental Shelf and employ new technology to increase production levels.