Vår Energi doubles down on North Sea hub strategy

Var Energi Norwegian oil and gas player Vår Energi has taken a final investment decision on the Gjøa subsea projects in the North Sea. The company has submitted the development and operations plan for the Ofelia and Gjøa Nord developments to the Norwegian Ministry of Energy. The Gjøa Subsea Projects, in which Vår Energi is the operator, comprise the development of the Ofelia, Gjøa Nord, and Cerisa discoveries as a coordinated subsea development tied back to the Gjøa and Duva infrastructure. The project represents the next phase of development in the Gjøa area and supports the company’s long-term production target. First production is expected from Cerisa in the third quarter of 2027, followed by start-up from Ofelia and Gjøa Nord in the second half of 2028. The project includes the development of approximately 76m barrels of oil equivalent gross in proved plus probable reserves. The project has strong economics, with a breakeven below $35 per barrel of oil equivalent, and a rate of return well above 25%. The project contributes to extending the area’s economic lifetime from the early 2030s to around 2040, while strengthening the basis for further tie-back developments and near-field exploration. “The Gjøa subsea projects demonstrate how we continue to develop our core hubs through efficient tie-back developments, leveraging existing infrastructure and exploration success to create long-term value. The project strengthens Gjøa as a long-term production hub and supports our target to produce more than 400,000 barrels of oil equivalent per day long-term,” said Torger Rød, COO of Vår Energi. Last week, Vår Energi took a final investment decision on the Balder Next New Wells project in the North Sea. The project comprises a first-phase development of seven new wells tied back to the Jotun FPSO, with expected start-up in the fourth quarter of 2027. Bojan Lepic Bojan is an English language professor turned journalist with years of experience covering the energy industry with a focus on the oil, gas, and LNG industries as well as reporting on the rise of the energy transition. Previously, he had written for Navingo media group titles including Offshore Energy Today and LNG World News. Before joining Splash, Bojan worked as an editor for Rigzone online magazine. Read Next June 25, 2026 Semco Maritime lands offshore services contract with INEOS June 25, 2026 TotalEnergies awards decom work to Ocean Installer June 25, 2026 SeaBird Exploration adds West Africa work to 2026 schedule June 25, 2026 Global Ship Lease confirms expanded newbuild programme June 25, 2026 Volkswagen sells majority stake in Everllence to Bain Capital