Norway's Vår Energi Submits Development and Operation Plans for Three Subsea Projects in the Gjøa Area of the North Sea

en.Wedoany.com Reported - Vår Energi and its partners have submitted the Plans for Development and Operation (PDO) for the Ofelia and Gjøa Nord projects in the North Sea to the Norwegian Ministry of Energy. These development projects involve three oil and gas discoveries—Ofelia, Gjøa Nord, and Cerisa—all of which will be tied back to the existing Gjøa and Duva infrastructure. Cerisa is expected to start production in the third quarter of 2027, with Ofelia and Gjøa Nord planned to follow in the second half of 2028.

The combined reserves of these projects amount to approximately 76 million barrels of oil equivalent, with Vår Energi's net share of proven and probable reserves standing at around 27 million barrels of oil equivalent. The breakeven price for these developments is expected to be below $35 per barrel of oil equivalent, with a return rate exceeding 25%. Vår Energi submitted the plan after making the final investment decision and serves as the operator for the coordinated Gjøa subsea projects. These projects mark a new phase of development in the Gjøa area, aligning with the company's efforts to achieve long-term production targets.

Vår Energi stated that the Gjøa subsea projects will help extend the economic life of the Gjøa hub from the early 2030s to approximately 2040, laying the groundwork for future potential tie-back projects and exploration. Meanwhile, the increased throughput at the Gjøa facility is expected to reduce unit production costs and improve the economic viability of existing fields in the area. Vår Energi has recently expanded its footprint in the Gjøa region through the acquisition of Pandion Energy's assets and a swap arrangement with DNO Norge.

Torger Rød, Chief Operating Officer of Vår Energi, noted that by developing through efficient tie-backs, existing infrastructure and exploration results can be leveraged to continuously develop core hubs. This project strengthens Gjøa's position as a long-term production hub and supports the company's long-term goal of producing over 400,000 barrels of oil equivalent per day. In the Ofelia, Gjøa Nord, and Cerisa discoveries, Vår Energi holds interests of 40%, 30%, and 30%, respectively, with project partners including Aker BP, DNO Norge, Harbour, INPEX, OKEA, Orlen, Pandion, and Petoro.

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