Vår Energi has agreed with Equinor on an asset exchange on the Norwegian Continental Shelf, increasing its interest in the Peon discovery while reducing its stakes in the Fram field and the Grosbeak discovery.
The agreement will give Vår Energi a 32.5% interest in Peon, covering PL269 and PL318/B/C/D. Equinor will also transfer operatorship to Vår Energi, subject to approval by the Ministry of Energy.
Peon is one of the largest undeveloped gas discoveries on the Norwegian Continental Shelf. It has estimated gross recoverable resources of 105 to 195 million barrels of oil equivalent and lies about 60 kilometers northwest of the Vår Energi-operated Gjøa field.
The discovery is planned as a tie-back to the Gjøa facilities. According to Vår Energi, the development is expected to help extend the economic lifetime of the Gjøa hub to around 2045.
As part of the transaction, Vår Energi will divest a 5% interest in the Fram field, covering PL090, PL090E and PL090I, including 40% of the Mulder discovery. This part of the deal is contingent on the carve-out of the field. Vår Energi will also divest its 5% interest in the Grosbeak discovery, covering PL090JS and PL925.
The transaction is expected to have limited impact on near-term production. Peon is expected to add production from around 2030, supporting Vår Energi’s long-term production target of above 400 thousand barrels of oil equivalent per day.
Completion of the asset exchange remains subject to customary approvals.
