Vår Energi and Equinor have agreed to swap assets on the Norwegian continental shelf, with Vår Energi increasing its exposure around the Gjøa area and Equinor strengthening its position in the Troll-Fram region.
Under the agreement, Vår Energi will acquire a 32.5% interest and operatorship in the Peon gas discovery from Equinor, with plans to develop the field as a tie-back to the Gjøa facilities.
In return, Equinor will receive a 5% interest in the producing Fram field, increasing its ownership to 50%, as well as Vår Energi's interests in the Grosbeak and Mulder discoveries and the Grønngylt prospect, which are part of the Ringvei Vest development.
Peon is one of the largest undeveloped gas discoveries on the Norwegian Continental Shelf, with estimated recoverable resources of 105 million to 195 million barrels of oil equivalent. The field is located around 60 kilometers northwest of the Vår Energi-operated Gjøa field.
Vår Energi said development of Peon as a tie-back to Gjøa is expected to extend the economic life of the Gjøa hub to around 2045. The company added that the transaction would have limited impact on near-term production but would add volumes from around 2030, supporting its long-term production target of more than 400,000 barrels of oil equivalent per day.
"This transaction strengthens our position in the Gjøa area, one of our key operated hubs, and supports our strategy of continuously high-grading the portfolio. By increasing our ownership and becoming operator of the Peon discovery, we add material resources and position Vår Energi to deliver long-term value from existing infrastructure.
“Together with the Gjøa Subsea Projects, where we announced final investment decision last week, this supports continued development of the area and extends the lifetime of the Gjøa hub," said Nick Walker, Chief Executive of Vår Energi.
Equinor said the deal would help accelerate development of Peon while improving its position in the Troll-Fram area.
"This transaction enables us to speed up progress of one of the largest undeveloped gas discoveries on the NCS, Peon, while strengthening our position in the Troll-Fram area. The swap supports efficient development of resources and increased use of existing infrastructure.
“This is the latest in a series of transactions on the NCS where we have aligned interests across partnerships to enable faster tie-back developments," added Kjetil Hove, Equinor's executive vice president for Exploration & Production Norway.
Equinor said the agreement forms part of a broader program of portfolio optimization on the Norwegian continental shelf, following recent asset swaps with Aker BP and DNO.
Completion of the transaction, including the transfer of operatorship and asset carve-outs, is subject to customary approvals, with Equinor remaining operator of Peon until completion.
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