Point Resources and Eni Norge Finalize Merger
Point Resources and Eni Norge have concluded the merger between the two companies, after receiving appropriate approvals.
The two companies have joined forces to create Vår Energi, with a new organisation of about 800 employees.
Vår Energi is an independent exploration and production (E&P) company, with a net production rate of more than 170 000 barrels of oil equivalent per day (boepd) in 2018.
Vår Energi is dedicated to exploring, developing and producing oil and gas resources offshore Norway.
Kristin F. Kragseth has stepped into the role as chief executive officer of Vår Energi, heading a new management of 13 professionals with experience from Point Resources, ExxonMobil and Eni.
Philip D. Hemmens has become chairman of Vår Energi’s board of directors.
“We are proud to be a major E&P player on the Norwegian shelf with operated production across all major areas; the Balder and Ringhorne fields in the North Sea, the Marulk field in the Norwegian Sea, and the Goliat field in the Barents Sea. We also have an extensive onshore presence with offices in Hammerfest, Oslo and Stavanger. This position, including a robust organisation, makes the company fit for continued safe operations and future business growth,” said Kristin F. Kragseth, CEO in Vår Energi.
Currently the company holds ownership in 17 producing oil and gas fields in Norway. Vår Energi plans to significantly increase its oil and gas production by investing approximately NOK 65 billion in more than ten development projects over the next years, raising production levels to net 250,000 boepd in the early 2020s.
A major operated project contributing to achieve this is the redevelopment of the first NCS license area, PL 001. The redevelopment has been named the Balder X Project.
The redevelopment of the Balder and Ringhorne fields entails future project activities such as extending the lifetime of the Jotun floating production storage and offloading vessel (FPSO) towards 2045; extending the life of the Balder FPSO towards 2030; and drilling of 15 new production wells in the Balder field area and 11 new production wells in the Ringhorne field area.
“After the last years’ restructuring of the industry, Vår Energi represents a new beginning on the NCS. Backed by Eni and HitecVision, we see major opportunities in Norway, and we have ambitious growth plans for the future. We are proud that the oldest license area on the NCS will continue to create value and provide job opportunities for future generations; benefiting Norwegian society, employees, business partners, local communities, shareholders and other stakeholders,” Kragseth highlighted.
Vår Energi has reserves and resources of more than 1,250 million boe, targeting development of about 500 million boe. The company is committed to continued exploration expenditure across all parts of the NCS in the years to come.
Vår Energi also holds a strategic position in the Barents Sea. The partly electrified Goliat field, with one of the lowest CO2-emitting installations on the NCS, represents the first infrastructure for oil production in the region. Vår Energi aims to further develop this potential through near field exploration activities and increased oil recovery.
Furthermore, through the partnership in Johan Castberg, Vår Energi is investing heavily in the future development of Norway’s northernmost oil province.
“With our wide geographical presence on the NCS, including both mature and new assets, we have a solid portfolio representing many growth opportunities. We also have a strong operating organisation with over 50 years’ NCS experience, built on the two predecessor companies’ legacies offshore Norway from the 1960s, and two shareholders with a long-term perspective on the NCS and a strong business development focus supporting our plans to increase and optimize the company’s footprint,” Kragseth added.