Vår Energi and its licence partners have announced the sanctioning of the Previously Produced Fields (PPF) project in the Greater Ekofisk Area in Norway’s North Sea.
The partners in the PPF project have reached a final investment decision regarding the PPF re-development initiative. The PPF project is operated by ConocoPhillips Skandinavia.
The PPF project, scheduled to start production from 2028, is expected to bolster the production life of the Greater Ekofisk Area.
It is estimated to deliver 55 million barrels of oil equivalent in net proved plus probable reserves.
Vår Energi’s capital commitment for the project stands at around $700m (Nkr7.15bn).
The PPF project includes the redevelopment of the Albuskjell and Vest Ekofisk fields in licences PL018B/F, as well as the Tommeliten Gamma field in licences PL044/D.
This redevelopment will use improved well placement and horizontal well technology to enhance reservoir exposure and production rates to boost recoverable reserves.
The project also features four new subsea templates and 11 production wells linked back to the Ekofisk Complex.
Vår Energi said the project is in line with its investment strategy, providing a fast payback, a competitive breakeven price of below $35 per barrel of oil equivalent and an expected return on investment of above 25%.
The company also highlighted the project’s anticipated rapid payback period.
Vår Energi COO Torger Rød said: “The PPF project is an important development that supports Vår Energi’s plan to sustain production of 350–400,000 barrels of oil equivalent per day (boepd) towards 2030 and beyond.
“This reinforces our focused strategy by consolidating our position in the Greater Ekofisk Area and securing low-cost reserves with strong upside potential, enhancing long-term value creation.
“Combining modern technologies with an entrepreneurial mindset enables optimised recovery from the mature fields, strengthening production long term, and to maximise asset value.”
In October, Vår Energi announced the acquisition of TotalEnergies’ ownership interest in PL018B/F, which will increase its stake from around 12% to 52%.
Upon this deal’s completion, which is expected this month, Vår Energi’s ownership in licences PL018B/F will be 52.28%, while its share in licence PL044/D will stand at 9.13%.
Recently, Vår Energi announced an oil discovery in the Goliat North exploration well, located around 5km north of the Goliat field in Norway’s Barents Sea.
The well, 7122/7-8, was drilled in production licence 229 using the COSL Prospector rig.
