Var Energi and TechnipFMC Forge Partnership for Subsea Projects
Var Energi ASA has announced a strategic partnership with TechnipFMC Norge AS aimed at executing engineering, procurement, construction, and installation for upcoming subsea projects in the Gjøa region of the North Sea. This collaboration agreement, which spans five years with potential for extension, is established on behalf of the license holders associated with the Gjøa Nord, Cerisa, and Ofelia discoveries, as stated in a recent company release. The scope of this partnership encompasses the comprehensive execution of subsea production systems along with subsea umbilicals, risers, and flowlines.
Potential of Gjøa Discoveries and Future Investment Plans
The Gjøa Nord, Cerisa, and Ofelia discoveries are projected to contain approximately 110 million barrels of oil equivalent in total. Var Energi plans to make an investment decision related to these developments by 2026. Should the license partners opt to advance, the intention is to synchronize the three projects to achieve efficiencies in procurement, engineering, drilling, installation, and project management, according to the company’s announcement.
Var Energi’s Vision for Gjøa Field Development
Torger Rod, COO of Var Energi, expressed optimism regarding the further development of the Gjøa field, emphasizing its significance as one of the company’s primary areas of focus. He noted that efforts are underway to advance the three oil and gas discoveries for a subsea development that would connect back to the Gjøa platform. He highlighted that through the collaboration with TechnipFMC, the company aims to accelerate the development process and enhance competitiveness.
Leveraging Expertise for Optimal Project Execution
Rod added that this partnership will utilize TechnipFMC’s vast experience and specialized knowledge of the Norwegian continental shelf, particularly in the Gjøa area. The collaboration aims to refine development strategies and ensure efficient execution of the projects to maximize value creation.
Key Stakeholders in Gjøa and Related Licenses
The PL153 Gjøa / Gjøa Nord license comprises Var Energi as the operator with a 30% interest, alongside Petoro holding 30%, Harbour Energy Norge AS with 28%, and OKEA ASA possessing 12%. In the PL 929 Ofelia license, Var Energi leads with a 40% stake, while Harbour Energy Norge owns 20%, Pandion Energy also holds 20%, and DNO and AkerBP each have 10%. Additionally, Var Energi operates the PL636 Duva/Cerisa license with a 30% stake, alongside ORLEN, INPEX Idemitsu, and Sval Energi, each holding 30%, 30%, and 10% respectively.
Progress on Ormen Lange Subsea Compression Project
Recently, Var Energi reported that the Ormen Lange project commenced its subsea compression phase ahead of schedule and under budget. Operated by Shell, the Ormen Lange gas field is situated on the Norwegian continental shelf, approximately 120 kilometers northwest of Kristiansund, near the Nyhamna onshore processing and export facility. The gas produced is channeled into European markets via the Langeled pipeline and the Norwegian gas export system. This initiative is crucial for Var Energi in reaching its goal of producing over 400,000 barrels of oil equivalent daily by the fourth quarter of 2025.
Ormen Lange Phase III Aims for Enhanced Gas Recovery
The third phase of the Ormen Lange project incorporates two subsea compression stations designed to boost field recovery rates from 75% to 85%. Development and operational plans indicate that this subsea compression could yield an additional 30 to 50 billion cubic meters of gross gas production from the Ormen Lange field. Shell, as the operator of the field, holds a 17.8% interest, while Var Energi possesses a 6.3% stake. Other stakeholders include Petoro AS with 36.5%, Equinor Energy at 25.3%, and Orlen Upstream Norway AS with 14%.
