Vår Energi ASA announced the final investment decision (FID) for the Gjøa subsea projects and submitted the Development and Operations Plan (PDO) for the Ofelia and Gjøa Nord projects to the Norwegian Ministry of Energy. This initiative represents a further step in the company’s growth strategy in the North Sea by leveraging existing infrastructure and developing nearby discoveries.
Coordinated development to expand production in Gjøa
The project, operated by Vår Energi, integrates the Ofelia, Gjøa Nord, and Cerisa discoveries into a single subsea development connected to the Gjøa and Duva facilities. This model aims to optimize existing infrastructure to accelerate the incorporation of new reserves and reduce development costs.
According to the company, Cerisa will begin production during the third quarter of 2027, while Ofelia and Gjøa Nord will begin operations in the second half of 2028.
Reserves and profitability support the project
The development includes approximately 76 million barrels of oil equivalent in gross reserves and 27 million barrels of oil equivalent corresponding to Vår Energi’s share in proven and probable reserves.
The company also indicated that the project has a break-even point of less than $35 per barrel of oil equivalent and a rate of return greater than 25%, indicators that supported the approval of the investment.
Torger Rød, operations director of Vår Energi, noted that Gjøa’s subsea projects strengthen the area as a long-term production hub thanks to the efficient interconnection of new developments with existing infrastructure and the success achieved in exploration campaigns.
Gjøa will extend its productive life until around 2040
The development will extend the economic life of the Gjøa area from the early 2030s to approximately 2040. It will also facilitate future connections for new discoveries and exploration activities in the vicinity of the asset.
The company also expects to increase the volume processed by the Gjøa facilities, reduce unit production costs, and improve the profitability of currently operating fields.
Strategy based on existing infrastructure
The projects will be executed using the project factory model developed by Vår Energi, a methodology that combines standardized solutions, coordinated drilling and installation campaigns, and the use of existing infrastructure to accelerate execution.
This approach also leverages existing agreements with suppliers to generate operational efficiencies throughout all phases of development.
Currently, Vår Energi holds a 40% stake in Ofelia and a 30% stake in both Gjøa Nord and Cerisa, where it works alongside companies such as Harbour, Petoro, OKEA, INPEX, Orlen, Pandion, Aker BP and DNO Norge AS.
Source and photo: Varenergi
