Vår Energi ASA has reached a final investment decision regarding the Gjøa Subsea Projects located in the North Sea. In coordination with its license partners, the company has officially submitted the Plan for Development and Operations (PDO) for the Gjøa Nord and Ofelia discoveries to the Norwegian Ministry of Energy.
“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 thousand barrels of oil equivalent per day long-term,” said Torger Rød, COO of Vår Energi.
Project Timeline and Resource Estimates
The development is expected to unlock approximately 76 million barrels of oil equivalent in gross proved plus probable reserves. The economic profile of the project remains robust, featuring a breakeven price of less than 35 USD per barrel of oil equivalent and a rate of return exceeding 25%.
Production is scheduled to begin in stages, with the Cerisa field expected to come online during the third quarter of 2027. This will be followed by the start-up of the Gjøa Nord and Ofelia fields in the second half of 2028. This phased subsea development is intended to extend the economic viability of the Gjøa area from the early 2030s to approximately 2040.
Strategic Infrastructure and Regional Impact
By increasing the total throughput of the Gjøa asset, the project is anticipated to lower unit production costs and enhance the overall economics of existing fields in the vicinity. Vår Energi has recently bolstered its position in this region through the acquisition of assets from Pandion and a swap agreement with DNO, which increased its ownership across several producing assets and development projects.
Execution and Partnership Framework
The execution of these offshore projects will follow a “project factory” model. This approach emphasizes standardized technical solutions and coordinated drilling campaigns to accelerate the development timeline. By leveraging established supplier collaborations and execution, the company aims to realize significant synergies during the coordinated drilling and installation phase.
Vår Energi serves as the operator for the Gjøa Subsea projects, holding a 40% interest in Ofelia and a 30% interest in both Gjøa Nord and Cerisa. The partnership for these North Sea oil and gas developments includes several key stakeholders:
- Ofelia: Pandion (20%), Harbour (20%), Aker BP (10%), and DNO Norge AS (10%).
- Gjøa Nord: Petoro (30%), Harbour (28%), and OKEA (12%).
- Cerisa: INPEX (30%), Orlen (30%), and DNO Norge AS (10%).
