FPSO Alvheim; Source: Aker BP

On portfolio optimization quest, Vår Energi offloads stake in North Sea oil field

Norway’s oil and gas player Vår Energi has set the wheels into motion to sell its interest in a field in the Norwegian sector of the North Sea, operated by Aker BP, a compatriot energy player.

FPSO Alvheim; Source: Aker BP

Vår Energi agreed with Norway’s Concedo to dispose of a 20% interest in the Bøyla field for a consideration of $24 million, enabling the other player to assume full decommissioning liabilities for the acquired field.

Stefano Pujatti, CFO of Vår Energi, commented: “The transaction is aligned with our stated ambition to dispose of non-strategic assets to optimise our portfolio of assets; reducing our operating costs and emission outlook and enhance future value creation.”

With an effective date of January 1, 2024, the transaction is subject to customary regulatory approvals and is expected to close in the fourth quarter of 2024. The company claims this does not impact its previously announced production guidance for 2024, year-end 2025, and beyond.

Located in the North Sea and operated by Aker BP (80%), the Bøyla mature producing field started production in 2015 and is developed with a subsea template tied back to the FPSO Alvheim. Vår Energi’s net production from the Bøyla field was approximately 1.4 kboepd in the first quarter of 2024.

With plans to curb emissions from its operations by more than 50% within 2030, the company has equity stakes in 47 fields. Vår Energi is set on growing its production to around 400,000 barrels per day by end-2025, with additional upside from taking over Neptune Energy Norway.

Currently, the firm is involved in several development projects on the Norwegian Continental Shelf (NCS), including upgrading an FPSO, which is expected to work on one of these projects.