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Norway’s oil and gas player Vår Energi is setting the wheels in motion to bring subsea tie-back development projects in the North Sea to life, in a bid to bolster the oil production arsenal on the Norwegian Continental Shelf (NCS).
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Vår Energi has taken a final investment decision (FID) on the Gjøa subsea projects in the North Sea, and together with its partners, submitted the plan for development and operations (PDO) for the Ofelia and Gjøa Nord developments to the Norwegian Ministry of Energy.
Torger Rød , COO of Vår Energi, commented: “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.”
The Gjøa subsea projects comprise the development of the Ofelia, Gjøa Nord, and Cerisa discoveries as a coordinated subsea development tied back to the Gjøa and Duva infrastructure.
The project represents the next phase of developments in the Gjøa area and supports the company’s long-term production target, with start-up expected from Cerisa in the third quarter of 2027, followed by start-up from Ofelia and Gjøa Nord in the second half of 2028.
The tie-back includes the development of approximately 76 million barrels of oil equivalent (boe) gross and 27 million barrels of oil equivalent net to Vår Energi in proved plus probable reserves.
The firm believes that the project has strong economics, in line with its requirements for project sanctions, with a breakeven below $35 per boe, and a rate of return well above 25%. The Gjøa area is a core hub in Vår Energi’s portfolio.
This project is said to contribute 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.
By increasing throughput for the Gjøa asset, the tie-back is expected to reduce unit production costs, improve the economics of existing fields, and support further resource development in the broader Gjøa area.
Vår Energi is the operator of the Gjøa subsea projects and holds working interests of 40% in Ofelia, 30% in Gjøa Nord, and 30% in Cerisa, respectively. The firm’s partners in Ofelia (PL929) are Pandion (20%), Harbour (20%), Aker BP (10%), and DNO Norge (10%).
While the Gjøa Nord (PL153) partners, aside from the operator, encompass Petoro (30%), Harbour (28%), and OKEA (12%), the Norwegian operator’s partners in Cerisa (PL636) are Inpex (30%), Orlen (30%), and DNO Norge (10%).
Through the recent acquisition of Pandion’s assets and swap with DNO on the NCS, Vår Energi strengthened its position around the Gjøa infrastructure, increasing ownership across producing assets and key development projects, including the latest subsea projects.
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The development is enabled by the Norwegian player’s project factory approach, combining standardised solutions, coordinated execution, and utilization of existing facilities to accelerate developments.
According to the operator, the project will be executed through a coordinated drilling and installation campaign, leveraging existing supplier collaborations and partnerships, realizing synergies and efficient execution.
about 1 month ago
Norway’s oil and gas player Vår Energi is setting the wheels in motion to bring subsea tie-back development projects in the North Sea to life, in a bid to bolster the oil production arsenal on the Norwegian Continental Shelf (NCS).
