Vår Energi ASA announced an asset swap agreement with Equinor that strengthens its presence in the Gjøa area, one of its main production centers on the Norwegian continental shelf. The transaction will allow Vår Energi ASA to acquire a 32.5% stake in the Peon field and assume its operation, once the necessary permits are obtained.
An asset swap to expand the development of Gjøa
As part of the agreement, Vår Energi will acquire a 32.5% stake in Peon, located approximately 60 kilometers northwest of the Gjøa field. The plan envisions developing this discovery by connecting it to the existing Gjøa facilities, thereby leveraging the installed infrastructure and extending the operational lifespan of the area.
In return, the company will transfer to Equinor a 5% stake in the Fram field, which includes 40% of the Mulder field subject to asset separation, in addition to its 5% stake in the Grosbeak field.
Peon will provide new resources for future production
Peon is among the largest undeveloped gas discoveries on the Norwegian continental shelf. Its gross recoverable resources are estimated at between 105 and 195 million barrels of oil equivalent.
According to Vår Energi, the development of the field will help extend the economic life of the Gjøa site to approximately 2045. Although the agreement will have a limited effect on production in the short term, the company anticipates an increase in production volume when Peon comes online around 2030.
This addition supports the corporate goal of exceeding a production of 400,000 barrels of oil equivalent per day in the long term.
The operation reinforces the growth strategy
Nick Walker, CEO of Vår Energi, stated that the transaction strengthens the company’s position in one of its key operating centers and allows it to incorporate resources that can be developed using existing infrastructure. He also indicated that the operation complements the recently approved subsea projects in Gjøa and will contribute to the continued development of the area.
The completion of the agreement remains subject to customary regulatory approvals; the transfer of the operation of the Peon field will also require authorization from the Norwegian Ministry of Energy.
Source: Varenergi.no
Photo: Shutterstock
