Exploration & Production
Exploration and production activities in Norway are regulated by Production Licenses (PL). According to a PL, the holder is entitled to perform seismic surveys and drilling and production activities for a given number of years with possible extensions.
In December 2018 it was finalized the business combination between Point Resources AS and Eni Norge AS, fully-owned by HitecVision and Eni respectively, with the creation of Vår Energi AS, an equity-accounted joint venture. The exchange rate of shares was established so that Eni and the Point Reources shareholders would retain participation interests of 69.6% and 30.4% respectively, in the combined entity. The governance of the new entity is designed to establish joint control of the two shareholders over the combined entity.
The transaction intends to strengthen Eni’s operational structure in the Country and the increase/diversification of the asset portfolios which will ensure a production growth higher than the current portfolio. The combined entity will be a leading Norwegian exploration & production company, built on the existing organizations and leveraging on complementary strengths. The portfolio of the combined company will have 17 producing oil and gas field with a wide geographical reach, from the Barents Sea to the North Sea, thanks to the entry of new assets, including the fields in production of Balder & Ringhorne (Eni’s interest 69.6%), Ringhorne East (Eni’s interest 53.85%), Boyla (Eni’s interest 13.92%), Brage (Eni’s interest 8.53%) and Snorre (Eni’s interest 0.7%). The company will have reserves and resources of more than 1,250 mmboe. Production is expected to achieve 250 kboe/d in 2023 after developing more than 500 mmboe in ten existing assets, with a breakeven price of less than 30 $/bbl. In total, the company plans to invest more than $8 billion over the next five years to bring these projects on stream, revitalize older fields and explore for new resources. Finally, Eni will retain a first offer right in case the Norwegian private equity funds, managed by HitecVision, decide to divest their interest in the venture.
In 2019 Vår Energi awarded 13 exploration licenses:
- the operatorship of two licenses in the North Sea and of two licenses in the Barents Sea;
- the interest of five licenses in the North Sea and of four licenses in the Norway Sea.
Exploration activities yielded positive results with:
- delineation well of the Cape Vulture oil and gas discovery in the PL 128/128D license (Eni’s interest 8%), nearby to the production facilities of the Norne field (Eni’s interest 4.8%). The results of the well confirm the commerciality of the discovery with recoverable volumes between 50 and 70 million boe;
- new oil discovery in the PL 532 license (Eni’s interest 20.88%). The well is located nearby to the Johan Castberg developing project in the area and Eni estimates the resources in place of oil and gas to be between 50 and 60 million boe;
- the Goliat West oil well in the PL 229 license (Eni’s interest 45.24%), increasing the estimated reserves of the Goliat production field;
- an oil and gas discovery in the PL 869 which is participated by Vår Energi AS with a 20% interest.
Development activities concerned:
- the Trestakk project (Eni’s interest 5,5%), with start-up expected in 2019 and a production of 4 million boe net to Eni;
- the Johan Castberg development project which was sanctioned in June 2018. Start-up is expected in 2022.
Offices and contacts
PO BOX 101 Forus
Tel.: (0047) 51 60 60 60
HQ Stavanger region
Vestre Svanholmen 12
Sandnes - Norway
Tel.: (0047) 52 874800