Resilient and low risk growth projects

Vår Energi’s development pipeline and exploration track record has positioned the company for growth in the coming years. Major sanctioned developments include Balder X and Johan Castberg.  

The company’s development projects generally exhibit high reserve quantities and low break-even prices. The company’s production target by the end of 2025 is supported by eight sanctioned development projects, well into execution with committed investments.

In addition, there is a number of opportunities within Vår Energi’s existing production base to add reserves and extend field life through incremental investments in infill drilling and well intervention programs, facility modifications, subsea satellite developments and near-field exploration.  

A significant part of Vår Energi’s capital expenditure program is targeted at future subsea tie-back projects, which are typically lower-risk with relatively small-scale capital requirements and significant potential for financial returns.

Vår Energi ensures efficiency in growth plans and capital expenditures by taking a disciplined approach to field development, with the ambition to achieve project break-evens of around USD 35 per barrel. The company’s exploration strategy is focused on identifying additional near-field drilling prospects at established assets and core hubs. 

Vår Energi is stepping up the pace of activity to realize the value upside in the portfolio. The company is maturing over 20 early-phase projects with net resources of around 400 million barrels. These are all tie-back developments – close to existing infrastructure – and with short time-to-market.

In 2024, Vår Energi will be involved in more than 100 wells – both development and exploration. This is a huge number in an offshore context. Capital discipline is key, and we’re focused on projects that are value-accretive, with breakevens of around USD 35 per barrel and rates of return over 25%.

Also, to realise the value of our significant exploration position, Vår Energi is doubling the pace of drilling compared with last year, and has around 60 wells planned over the next four years.