Norway's Var Energi makes oil and gas find in latest Troll/Gjoa boost

Norway's Var Energi has made an oil and gas discovery estimated at 18 million-39 million barrels of oil equivalent in the vicinity of its Gjoa hub, which in turn feeds Troll crude volumes and UK gas supply, it said June 27.

Var, in a statement, noted it was the latest in a string of finds it had made near Gjoa, including assets recently purchased from Neptune Energy, estimating the total recent finds at 110 million boe.

The find also underlines the potential for sizable additional sources of crude supply for the Equinor-operated Troll hub, which is the ultimate loading point for crude from Gjoa; Equinor has also been making finds in the vicinity of Troll. Gjoa gas is directed not to Troll, but straight to the UK via the Far North Liquids and Associated Gas System (FLAGS) to a terminal at St Fergus.

The latest Var discovery, dubbed Cerisa, entailed drilling one exploration well and three side-track appraisal wells. The drilling encountered both oil and gas columns and did not encounter an "oil-water contact," implying potential for an upward revision to resource estimates, a statement from the Norwegian Offshore Directorate said.

"The Gjoa area constitutes a key part of the company's hub strategy on the Norwegian continental shelf [and] is a testament to our consistent and successful exploration strategy, targeting high-value barrels close to existing infrastructure," Var CEO Torger Rod said.

Var holds a 30% stake in the license, Number 636, alongside Japex on 30%, Poland's PGNiG on 30% and independent Sval Energi on 10%.