Oil and gas will remain an important part of the energy mix for the next decades. Alternative sources alone will not cover the increasing global energy needs. Forecasts suggest demand for oil and gas will remain close to current levels leading up to 2050, and natural gas will become increasingly important as a transition fuel.

Preventing production decline and energy shortages due to natural depletion of reservoirs requires investments in new exploration and project developments. At the same time, decarbonising the oil and gas industry is fundamental to maintain Vår Energi’s position in the future energy picture.

The United Nations Climate Change Conference, COP28, where the world agreed to transition away from GHG-emitting energy sources, underlines this. The winners will be those who can produce hydrocarbons with as little emissions and at the lowest cost possible. Vår Energi believes the NCS is the best place in the world to produce hydrocarbons.

The region is characterised by low cost, low emissions, as well as stable and favourable framework conditions, combined with a large resource base. Vår Energi’s strategy is a strong response to this context, ensuring growth and value creation for all stakeholders in the long term.

The company will continue:

• To be a reliable and secure supplier of energy to Europe
• To be a pure-play Norwegian oil and gas company
• To operate in a safe and responsible manner

Vår Energi will deliver growth, sustained production and unlock future value whilst at the same time accelerating decarbonisation to allow us to deliver sustainable and resilient returns to shareholders over time.

Our strategy is really very simple:

1. To ensure growth and value creation for all our stakeholders over time
2. To be a reliable and secure supplier of energy to Europe
3. To be a pure-play Norwegian oil and gas company
4. And to be safe and responsible in the way we conduct our business

The NCS exhibits low CO2 emissions from production with an average of 7 kg of CO2 per barrel, compared to the global average of around 17 kg of CO2 per barrel. The region is a global leader in electrification, with 40% of the NCS slated to be electrified mainly with renewable hydropower by 2025.

Other large-scale NCS sustainability initiatives include a strong focus on carbon capture and storage, and use of offshore wind as a source of energy.

Sustainability is an essential part of how Vår Energi conducts its business and is integrated in the company strategy through the corporate governance system. Vår Energi supports the UN Sustainable Development Goals (SDGs) and use them as a framework for its sustainability approach; to create value for the company’s stakeholders, while respecting the environment, people, and society.

It is Vår Energi’s ambition to be an ESG leader through safe, healthy, secure and sustainable operations throughout the value chain, with minimal impact on the environment. This goes hand-in-hand with efficient operations, well-executed projects and strong drilling and well operations.

Vår Energi will achieve this through extensive collaboration and dialogue with highly skilled partners, suppliers, trade unions, and the authorities. To achieve this, Vår Energi has made the commitment to deliver a better future, working towards:

• a stable and secure energy supply with lower greenhouse gas emissions
• responsible management of natural resources
• a solid flow of revenue for owners and the broader Norwegian society – based on increased energy production for customers in Europe.