Vår Energi approves Gjøa subsea project in Norway's North Sea
(WO) — Vår Energi has taken final investment decision (FID) on the Gjøa Subsea Projects and, together with its partners, submitted the Plan for Development and Operations (PDO) for the Ofelia and Gjøa Nord developments to Norway's Ministry of Energy.
The coordinated subsea development will bring together the Ofelia, Gjøa Nord and Cerisa discoveries through tie-backs to the existing Gjøa and Duva infrastructure, supporting Vår Energi's strategy of expanding production through infrastructure-led developments on the Norwegian Continental Shelf.
The project includes approximately 76 MMboe of gross proved and probable reserves, with first production from the Cerisa development expected in the third quarter of 2027. Start-up of Ofelia and Gjøa Nord is planned for the second half of 2028.
"The Gjøa Subsea Projects demonstrate how we continue to develop our core hubs through efficient tie-back developments, leveraging existing infrastructure and exploration success to create long-term value," said Torger Rød, chief operating officer of Vår Energi.
According to the company, the project has a breakeven price below $35/boe and is expected to generate a rate of return above 25%.
By increasing throughput at the Gjøa production hub, the development is expected to extend the area's operating life from the early 2030s to around 2040 while lowering unit production costs and creating additional opportunities for future tie-back projects and near-field exploration.
Vår Energi said the project will be executed using its "project factory" approach, combining standardized subsea solutions, coordinated drilling and installation campaigns, and the use of existing offshore infrastructure to accelerate development and improve capital efficiency.
The company operates the Gjøa Subsea Projects and holds interests in the Ofelia, Gjøa Nord and Cerisa developments alongside partners including Harbour Energy, Petoro, OKEA, INPEX, ORLEN and DNO.
