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Var Energi Reaches FID on Gjoa Subsea North Sea Projects

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Norwegian upstream oil and gas company Var Energi has reached a final investment decision for the Gjoa Subsea Projects in the North Sea, it said on Thursday.

Var Energi is the operator of the Gjoa Subsea Projects, which aim to develop the Ofelia, Gjoa Nord and Cerisa discoveries as a coordinated subsea development linked to the Gjoa and Duva infrastructure.

The company, along with its partners, has submitted a plan for the development and operations of the Ofelia and Gjoa Nord projects to the Ministry of Energy, Var Energi said in a statement.

While first production from Cerisa is scheduled for Q3 2027, the start-up of Ofelia and Gjoa Nord is expected in H2 2028.

The project will develop about 76 million barrels of oil equivalent gross and 27 million barrels net for Var Energi in proven and probable reserves, the statement said.

The project is expected to extend the economic lifetime of the Gjoa area from the early 2030s to around 2040 and support future tie-back developments and nearby exploration.

"The project has strong economics, in line with the company's requirements for project sanctions, with a breakeven below [$35] per boe, and a rate of return well above 25%," Var Energi said.

Var Energi holds a 40% working interest in Ofelia, 30% in Gjoa Nord, and 30% in Cerisa.

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