Var Energi Signs Agreement with TechnipFMC for Gjoa Area

Var Energi ASA said it has entered into a collaboration agreement with TechnipFMC Norge AS for the engineering, procurement, construction, and installation of future subsea projects in the Gjøa area of the North Sea.

Var Energi entered into the agreement, which has a term of five years with the possibility of extension, on behalf of the license owners in the Gjøa Nord, Cerisa, and Ofelia discoveries, the company said in a news release.

The work scope covers the integrated execution of both subsea production systems and subsea umbilicals, risers, and flowlines, according to the release.

Financial terms of the contract were not disclosed.

The Gjøa Nord, Cerisa, and Ofelia discoveries are estimated to contain up to a total of 110 million barrels of oil equivalent gross, and an investment decision is planned for 2026, the release said.

If the license partners decide to proceed, the plan is to coordinate the three developments, aiming to “realize synergies in procurement, engineering, drilling, installation and project follow-up,” Var Energi said.

Var Energi COO Torger Rod said, “We have high expectations for further development around the Gjøa field, which is one of Vår Energi’s core areas. Currently we are maturing the three oil and gas discoveries for a planned subsea development that will be tied back to the Gjøa platform. Through the agreement with TechnipFMC, the goal is to achieve faster and more competitive development”.

“Through this agreement, we will leverage TechnipFMC’s extensive experience and expertise on the Norwegian continental shelf and in the Gjøa area in particular. We look forward to continuing the collaboration. Together, we will optimize the development solution and ensure efficient project execution in order to maximize value creation,” Rod added.

The partners in the PL153 Gjøa / Gjøa Nord license are Var Energi, the operator with a 30 percent stake; Petoro with 30 percent; Harbour Energy Norge AS with 28 percent, and OKEA ASA with 12 percent.

For the PL 929 Ofelia license, Var Energi is the operator with a 40 percent stake, while Harbour Energy Norge owns a 20 percent stake, Pandion Energy owns 20 percent, and DNO and AkerBP own 10 percent each.

For PL636 Duva/Cerisa license, Var Energi is the operator with a 30 percent stake, while ORLEN owns a 30 percent stake, INPEX Idemitsu owns 30 percent, and Sval Energi owns 10 percent.

Ormen Lange Project Begins Subsea Compression

Last month, the Ormen Lange project started subsea compression to boost production from the gas field, ahead of plan and below budget, Var Energi said in an earlier statement.

Operated by Shell, Ormen Lange is a major natural gas field located on the Norwegian continental shelf, approximately 74.6 miles (120 kilometers) northwest of Kristiansund in the Norwegian Sea and near the onshore processing and export facility at Nyhamna. The gas is exported to European markets through Langeled and the Norwegian gas export system.

The project is an “important contributor” to help Vår Energi attain its target of producing more than 400,000 barrels of oil equivalent per day in the fourth quarter of 2025, the company said.

The Ormen Lange phase III project consists of two subsea compression stations aimed at increasing field recovery from 75 percent to 85 percent. The project’s plan for development and operation estimates that subsea compression will recover an additional 30 billion to 50 billion cubic meters of gross gas production from the Ormen Lange field, according to the statement.

Shell is the operator of the Ormen Lange field with a 17.8 percent stake. Var Energi owns a 6.3 percent stake, Petoro AS owns 36.5 percent, Equinor Energy owns 25.3 percent, and Orlen Upstream Norway AS owns 14 percent.

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