Var Energi Boosts Resources on Exploration Wins

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Var Energi Boosts Resources on Exploration Wins

Vår Energi ASA has increased its reserves and resource base to 2.1 billion barrels of oil equivalent (boe). The reported value was the sum of its proved and probable (2P) reserves and contingent resources (2C), as published in its annual statement of reserves for 2024. As of December 31, 2024, Var Energi’s total 2P reserves […]

Vår Energi ASA has increased its reserves and resource base to 2.1 billion barrels of oil equivalent (boe).

The reported value was the sum of its proved and probable (2P) reserves and contingent resources (2C), as published in its annual statement of reserves for 2024. As of December 31, 2024, Var Energi’s total 2P reserves was estimated at 1.19 billion boe.

Last year was “characterized by solid production within the guided range, successful integration of Neptune Energy Norge AS, portfolio optimization, and continuous initiatives to increase recovery from producing fields by drilling additional infill wells,” Var Energi said in a statement.

The company attributed the increase to early-phase development projects, lifetime extensions of existing fields and the inclusion of the Neptune assets.

Var Energi also reported that 2C resources increased to 927 million boe (MMboe) from 62 MMboe at the end of 2023, which it attributed to “several exploration successes and technical revisions,” as it is currently progressing resources into new development projects.

In addition, the significant volume of 2C resources represents a major part of Vår Energi’s strategy to sustain future production, value creation and attractive shareholder returns long term. As of 31 December 2024, total 2C resources are 927 mmboe, a significant increase from 628 mmboe at the end of 2023. This increase is due to several exploration successes and technical revisions as the Company is actively de-risking and progressing resources into new development projects.

The reported 2P reserves and 2C resources comply with the Petroleum Resources Management System (PRMS), Var Energi noted, adding that international petroleum consultants DeGolyer and MacNaughton carried out an independent assessment of its portfolio.

“This represents a strong foundation for long-term sustained production and value creation, and we are working at pace to mature a pipeline of new projects to realize these opportunities,” Var Energi CEO Nick Walker said.

In a separate statement, Var Energi reported an average net production of oil, liquids, and natural gas of 278,000 barrels of oil equivalent (boepd) in the fourth quarter of 2024, an increase of 8 percent sequentially and an increase of 23 percent year over year. Total production for the full year averaged 280,000 boepd, within the company’s guidance range for the year.

Production in the last quarter consisted of 64 percent oil and natural gas liquids (NGLs) and 36 percent gas.

Last month, Var Energi announced a long-term partnership deal with Aker Solutions, Honeywell, and StS-ISONOR for the delivery of modification and maintenance services on the Norwegian continental shelf (NCS).

The collaboration seeks to generate value through collaborative project planning, safe and efficient execution, strong teamwork, and shared objectives, according to an earlier news release. The agreements are set for a five-year term, with the possibility of renewal, and encompass the company’s operations spanning the entire NCS with a diversified portfolio of around 200 licenses and 40 producing fields.

“By year-end, we will increase production to around 400 thousand barrels per day, which makes us one of the world’s fastest-growing oil and gas companies”, Var Energi COO Torger Rod said.

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