Vår Energi has announced that four major projects are set to start operations in 2025. The Norwegian oil and gas company expects these developments to increase its production, surpassing 400,000 barrels of oil equivalent per day (kboepd). The company plans to maintain this production level through 2026 and sustain an output between 350 and 400 kboepd towards 2030.
Vår Energi aims to initiate nine projects in 2025, adding 180 kboepd at peak production, with capital expenditures for the year estimated at $2.3 to $2.5 billion. Vår Energi boasts a strong resource base, with over 2.1 billion boe of net proved plus probable (2P) reserves and 2C resources. The company intends to advance more than 25 early-phase projects, targeting to exceed 500 million boe net 2C contingent resources with around eight new development project sanctions in the year.
The company will increase its exploration activities on the Norwegian Continental Shelf (NCS), planning to drill approximately 20 wells and invest about $350 million in exploration, with around 50% of these activities projected to occur within the next four years following a recent hydrocarbon discovery.
New projects set for 2025
Nick Walker, CEO of Vår Energi, stated, “2025 will be a transformational year for Vår Energi, with production set to grow significantly.
We are committed to sustaining high production levels and advancing multiple projects to unlock their potential and continue to drive value.
Progress continues on the Equinor-operated Johan Castberg project, with Vår Energi aiming to bring it online in the first quarter of 2025. The company has also confirmed progress on multiple ventures, including the Balder Phase V project, which targets start-up in late 2025. In 2024, Vår Energi made six discoveries, achieving a nearly 50% success rate for the year.
The company plans to begin drilling activities in the first half of 2025, with initial wells expected to be operational by the end of 2025 via subsea tie-backs. The Balder field, operated by Vår Energi (90%) with Kistos Energy Norway (10%), is set to recover around 200 million barrels of additional reserves. The Norwegian player aims to extend the production lifespan of the Balder Future re-development project in the North Sea to 2045.
Vår Energi’s comprehensive strategy emphasizes acceleration in project execution, enhanced exploration activities, and a commitment to carbon-neutral operations by 2030, demonstrating its dedication to maintaining robust production while meeting environmental goals.
