Norway’s Vår Energi Makes Exciting North Sea Oil and Gas Discovery

Norway’s foremost oil and gas corporation, Vår Energi, has revealed a substantial oil and gas discovery in the North Sea, adjacent to the Norwegian coast. The discovery is projected to encompass gross recoverable resources of 18–39mboe, presenting new prospects for resource expansion in the region.

This momentous advancement is positioned near the partially electrified Gjøa platform, under the management of Vår Energi. As per the company’s statement, the Cerisa exploration well, in conjunction with prior discoveries in Gjøa North and Ofelia/Kyrre, is anticipated to link to the Gjøa field using existing infrastructure. With an estimated total recoverable resource of up to 110mboe, this discovery holds substantial potential for unlocking additional resources in the area.

The Cerisa discovery, located 17km north-east of the Vår Energi-operated Gjøa platform and 5km from the Duva subsea template, serves as a significant addition to the company’s expanding portfolio. In fact, the Gjøa field is roughly 80km south-west of Florø on the Norwegian coast, positioning it as a valuable asset for Vår Energi’s operations.

Vår Energi’s Chief Operating Officer, Torger Rød, underscored the significance of the discovery by emphasizing its potential to unlock further resources in the area and contribute to the value-accruing synergies resulting from previous transactions. He highlighted that the discovery aligns with the company’s target to deliver 350,000–400,000 barrels of oil equivalent per day from 2025 onwards, demonstrating its dedication to sustainable growth and development.

Over the past five years, Vår Energi has consistently maintained an impressive discovery rate of over 50%, with finding costs of less than $1 per barrel after tax. This showcases the company’s effective exploration and discovery strategies, solidifying its position as a prominent player in the oil and gas industry.

The Cerisa discovery is presently being integrated into the Gjøa North and Ofelia/Kyrre project team to facilitate the swift development of these four discoveries for production, as announced by Vår Energi. This underscores the company’s proactive approach to project development and its commitment to maximising the potential of its discoveries.

While this discovery presents a significant opportunity for resource expansion, it is also likely to raise concerns among environmentalists advocating for a shift away from further exploration in the region. In March, climate activists in four nations obstructed entry to North Sea oil infrastructure as part of a synchronised pan-European nonviolent protest, highlighting the escalating resistance against fossil fuel extraction.

Despite the controversy surrounding oil and gas discoveries in the North Sea, this recent development holds promise for resource expansion, as the absence of oil-water contact in the drilled wells indicates the potential for increased oil reserves. As the industry continues to navigate challenges and opportunities, Vår Energi remains dedicated to responsible resource development and the pursuit of sustainable energy solutions.