Vår Energi and its partners have submitted a Plan for Development and Operations (PDO) to Norway's Ministry of Energy for the Gjøa Subsea Projects in the North Sea after taking a final investment decision on the developments.
The Gjøa Subsea Projects comprise the coordinated development of the Ofelia, Gjøa Nord and Cerisa discoveries through subsea tie-backs to the existing Gjøa and Duva infrastructure, with Vår Energi acting as operator.
"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. The project strengthens Gjøa as a long-term production hub and supports our target to produce more than 400 thousand barrels of oil equivalent per day long-term," said Torger Rød, chief operating officer of Vår Energi.
The project is expected to develop about 76 million barrels of oil equivalent (boe) gross and 27 million boe net to Vår Energi in proved plus probable reserves.
First production from the Cerisa discovery is expected in the third quarter of 2027, followed by start-up of Ofelia and Gjøa Nord in the second half of 2028.
Vår Energi said the project has a breakeven below $35 per boe and a rate of return above 25%.
The company added the development is expected to extend the economic life of the Gjøa area from the early 2030s to around 2040 while increasing throughput and reducing unit production costs.
Vår Energi recently increased its exposure to the Gjøa area through the acquisition of Pandion Energy's assets and an asset swap with DNO on the Norwegian Continental Shelf. It holds a 40% interest in Ofelia and 30% interests in Gjøa Nord and Cerisa.
Partners in Ofelia are Pandion with 20%, Harbour with 20%, Aker BP with 10% and DNO Norge with 10%. The Gjøa Nord partners are Petoro with 30%, Harbour with 28% and OKEA with 12%, while INPEX and Orlen each hold 30% of Cerisa and DNO Norge holds 10%.
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