Var Energi has made a commercial gas and condensate discovery near its Fenja oilfield in the Norwegian Sea and could develop it as a tie-in to the producing field, the Norwegian oil company said on Monday.
Var Energi, which holds 75% and is the operator of the exploration license, has made the gas and condensate discovery in the Vidsyn exploration well, confirming discovered recoverable resources in the range of 25 to 40 million barrels of oil equivalent (boe).
The discovery is only 8 kilometers (5 miles) from the existing Fenja subsea infrastructure, which is tied into the Njord host facility. Var Energi is the operator of the Fenja field, which began production – mostly oil – in April 2023.
Additional gas volumes from Norway, especially if fast-tracked via a tie-in, would be welcome in Europe, where the Norwegian shelf is now the single largest gas supplier, replacing Russia after 2022.
“The remaining potential of the ridge will be assessed through an appraisal programme, to facilitate for a fast track development,” Var Energi said, adding that the discovery supports its infrastructure-led exploration approach and strengthens its position in the Norwegian Sea.
“We are actively exploring in this area and are currently maturing new prospects,” said Luca Dragonetti, SVP Exploration at Var Energi.
Bijan Mossavar-Rahmani, executive chairman of the other partner in the license, Norway’s DNO, said “Together with Vår Energi, we will work hard to put it into production faster than is the norm in Norway.”
Oil and gas operators on the Norwegian shelf are advancing infrastructure-led exploration which allows them to fast-track the development of newly-discovered resources via tie-ins to nearby infrastructure.
Earlier this month, Equinor said it had made a gas discovery close to its Johan Castberg oilfield in the Barents Sea and will assess a potential tie-in to the now fully operational Arctic field.
Norway expects its oil liquids production to rise by 5.2% in 2025 from 2024, also thanks to the start-up of Johan Castberg.
Yet, further exploration efforts and new discoveries would be crucial to slowing the expected decline in Norway’s oil and gas production in the 2030s, the Norwegian authorities have said.
By Michael Kern for Oilprice.com
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