Vår Energi offloads stake in North Sea field

Norwegian oil and gas player Vår Energi has inked a deal with Petrolia NOCO (Petrolia) to dispose of its entire interest in a field located in the Norwegian North Sea, as part of its portfolio optimization process.

Brage platform; Credit: Wintershall Dea/Morten Berentsen

As a result of this agreement, Vår Energi is selling its 12,26% interest in the Brage field to Petrolia. This is a late life producing field in the Central North Sea, which is operated by OKEA (35.2%). OKEA’s current partners in the Brage field are Lime Petroleum (33.84%), DNO Norge (14.26%), Vår Energi (12.26%), and M Vest Energy (4.44%). The field started production in 1993 and comprises a production, drilling, and quarters platform with oil transportation via OTS/Sture Terminal and gas offtake through Gassled.

Stefano Pujatti, CFO of Vår Energi, commented: “The transaction is part of Vår Energi’s ongoing portfolio optimization process, in line with stated long-term strategic drivers and performance metrics to reduce cost and enhance value creation.”

Furthermore, Vår Energi’s net production from the field was 1 Kboepd in the first half of 2023 and had remaining net reserves 1.9 mmboe at year-end 2022. The completion of the sale of Vår Energi’s stake is subject to normal regulatory approvals and is expected to close by the end of 2023.

Meanwhile, Vår Energi is working on executing its plan for growing production to above 350,000 barrels per day by end-2025, with additional upside from taking over Neptune Energy Norway. The company is also pursuing decarbonization with offshore wind, as demonstrated by a collaboration with a consortium consisting of Odfjell Oceanwind and Source Galileo to explore opportunities for floating offshore wind through a pilot project at a field located in the Barents Sea.

In addition, the Norwegian player handed out a five-year deal to Halliburton, covering drilling services related to exploration and production drilling across its portfolio on the NCS. The firm’s drilling activities are focused around four strategic hubs in the Balder/Grane area, the North Sea, the Norwegian Sea, and the Barents Sea.

Recently, Vår Energi also hired a sixth-generation semi-submersible rig from COSL Drilling Europe for drilling operations in the Barents Sea with the aim of ramping up the search for more hydrocarbons offshore Norway.