Vår Energi’s Strategic Move to Accelerate Oil and Gas Developments

Overview of Vår Energi’s Strategic Move

Vår Energi has made a strategic move by pre-ordering Subsea Production Systems (SPS) from OneSubsea. This pre-commitment agreement is a significant step in Vår Energi’s business strategy, aiming to accelerate oil and gas developments in Norway. The agreement includes a complete SPS, which comprises a standard four-well slot template and a single well satellite structure. This pre-order is set to be delivered before summer 2027, with essential drilling parts scheduled for delivery in 2026. This pre-commitment will enable Vår Energi to reduce subsea tie-back development time by up to one year, a critical advantage in the competitive Norwegian oil and gas industry.

Vår Energi’s decision to pre-order these systems aligns with its broader goal of developing projects from discovery to production in less than four years. This initiative is part of a broader effort to standardize subsea equipment and shorten lead times, which is expected to further reduce project development time and costs. The company aims to sustain production at 350-400 thousand barrels of oil equivalent per day by 2030. This strategic move positions Vår Energi as a leader in efficient and rapid project execution, which is crucial for maintaining its competitive edge in the industry.

The pre-commitment agreement with OneSubsea is a testament to Vår Energi’s commitment to innovation and efficiency. By pre-ordering these systems, Vår Energi ensures that it has the necessary equipment ready for its high-value early-phase portfolio of over 20 projects. This pre-commitment not only accelerates project timelines but also secures materials and reduces delivery times, enabling continuous fast-track deliveries into its project portfolio. This strategic move is expected to support Vår Energi’s plan to reach its production targets and maintain its leadership position in the Norwegian oil and gas sector.

In summary, Vår Energi’s pre-order of Subsea Production Systems from OneSubsea is a pivotal move that underscores the company’s commitment to innovation, efficiency, and rapid project execution. This strategic initiative is poised to significantly impact the Norwegian oil and gas industry by setting new standards for project development times and costs. OEDigital

Components of the Subsea Production System

The Subsea Production System (SPS) is a critical component of offshore oil and gas operations, enabling the extraction and processing of hydrocarbons from underwater reservoirs. Vår Energi, a Norwegian oil and gas company, has strategically pre-ordered SPS from OneSubsea to accelerate its project development times and ensure efficient oil and gas production. This section delves into the key components of the SPS, their functionalities, and their importance in the context of Vår Energi’s operations.

Vertical Subsea Trees

Vertical subsea trees are integral to the SPS, serving as the primary structural support for the subsea equipment. These trees are designed to withstand the immense pressure and corrosive conditions of the deep sea. They provide a stable platform for the installation of wellheads, Christmas trees, and other subsea equipment. The vertical subsea trees in Vår Energi’s pre-ordered SPS are engineered to support multiple wells, ensuring that the system can handle the company’s diverse and extensive portfolio of projects. This modular design allows for easy maintenance and replacement, further enhancing the system’s reliability and longevity. The vertical subsea trees are crucial for accelerating project development times, as they can be quickly installed and commissioned, reducing the overall time required to bring a new field into production.

Wellheads

Wellheads are critical components of the SPS, acting as the interface between the subsea equipment and the wellbore. They are designed to control the flow of fluids to and from the reservoir, ensuring safe and efficient production. The wellheads in Vår Energi’s pre-ordered SPS are equipped with advanced control systems that enable remote monitoring and operation. This capability is essential for optimizing production and minimizing downtime, both of which are critical for maximizing the company’s oil and gas output. The wellheads are also designed to withstand the harsh environmental conditions of the deep sea, ensuring their longevity and reliability.

Templates

Templates are essential for organizing and securing the subsea equipment on the seafloor. They provide a stable base for the installation of vertical subsea trees, wellheads, and other equipment. The templates in Vår Energi’s pre-ordered SPS are designed to accommodate multiple wells, allowing for efficient and cost-effective installation. The templates are also equipped with robust anchoring systems that ensure they remain securely in place, even in harsh ocean conditions. This stability is crucial for the safe and efficient operation of the subsea equipment, reducing the risk of accidents and minimizing maintenance requirements.

Manifolds

Manifolds are used to gather and distribute fluids from multiple wells to a central processing facility. They play a crucial role in the SPS by ensuring that the fluids are collected and transported efficiently. The manifolds in Vår Energi’s pre-ordered SPS are designed to withstand the high pressures and temperatures associated with oil and gas production. They are also equipped with advanced control systems that enable remote monitoring and operation, further enhancing their efficiency and reliability. The manifolds are essential for accelerating project development times, as they can be quickly installed and commissioned, reducing the overall time required to bring a new field into production.

Umbilicals

Umbilicals are the critical connections that transmit power, data, and control signals between the subsea equipment and the surface facilities. They are designed to withstand the harsh conditions of the deep sea, ensuring reliable communication and power supply. The umbilicals in Vår Energi’s pre-ordered SPS are equipped with advanced insulation and protection systems that safeguard against corrosion and damage. This reliability is essential for the safe and efficient operation of the subsea equipment, reducing the risk of accidents and minimizing maintenance requirements. The umbilicals are also designed to be easily replaceable, further enhancing their longevity and reliability.

Christmas Trees

Christmas trees are used to control the flow of fluids to and from the wellbore. They are designed to withstand the high pressures and temperatures associated with oil and gas production. The Christmas trees in Vår Energi’s pre-ordered SPS are equipped with advanced control systems that enable remote monitoring and operation. This capability is essential for optimizing production and minimizing downtime, both of which are critical for maximizing the company’s oil and gas output. The Christmas trees are also designed to withstand the harsh environmental conditions of the deep sea, ensuring their longevity and reliability.

Importance of SPS Components in Accelerating Project Development

The key components of the SPS play a pivotal role in accelerating project development times and ensuring efficient oil and gas production. The vertical subsea trees, wellheads, templates, manifolds, umbilicals, and Christmas trees are all designed to withstand the harsh conditions of the deep sea and ensure reliable and efficient operation. The modular design of these components allows for easy maintenance and replacement, further enhancing their reliability and longevity. The advanced control systems integrated into these components enable remote monitoring and operation, further enhancing their efficiency and reliability. This combination of factors is essential for accelerating project development times, as it reduces the overall time required to bring a new field into production and minimizes downtime, both of which are critical for maximizing the company’s oil and gas output.

Conclusion

The Subsea Production System (SPS) is a critical component of offshore oil and gas operations, enabling the extraction and processing of hydrocarbons from underwater reservoirs. Vår Energi, a Norwegian oil and gas company, has strategically pre-ordered SPS from OneSubsea to accelerate its project development times and ensure efficient oil and gas production. The key components of the SPS, including vertical subsea trees, wellheads, templates, manifolds, umbilicals, and Christmas trees, are all designed to withstand the harsh conditions of the deep sea and ensure reliable and efficient operation. The modular design of these components allows for easy maintenance and replacement, further enhancing their reliability and longevity. The advanced control systems integrated into these components enable remote monitoring and operation, further enhancing their efficiency and reliability. This combination of factors is essential for accelerating project development times, as it reduces the overall time required to bring a new field into production and minimizes downtime, both of which are critical for maximizing the company’s oil and gas output. Marine Technology News

Delivery Timeline and Key Milestones

The delivery timeline and key milestones for the pre-ordered Subsea Production Systems (SPS) by Vår Energi are crucial for achieving the company’s production targets and accelerating project development times. This section outlines the planned delivery dates and the significance of these milestones in the context of Vår Energi’s strategic goals.

Delivery Timeline

The pre-ordered Subsea Production Systems (SPS) from OneSubsea are scheduled for delivery over a specific period to ensure timely integration into Vår Energi’s projects. The agreement with OneSubsea includes a commitment to deliver the systems before the summer of 2027. This timeline is particularly significant given that the critical components necessary for drilling are planned to be delivered in 2026. This strategic planning allows Vår Energi to expedite the development process, reducing tie-back development time by up to one year Vår Energi’s precommitment to subsea systems to cut tie-back development time by up to one year.

Key Milestones

1. Pre-Order Confirmation

   Date: Q1 2025

   Significance: The formal confirmation of the pre-order sets the foundation for the subsequent delivery schedule. This milestone marks the beginning of the collaboration between Vår Energi and OneSubsea, ensuring that both parties are aligned on the project’s objectives and timelines.

2. Component Procurement

   Date: Q2 2025

   Significance: This phase involves the procurement of essential components for the SPS. Efficient procurement is critical as it directly impacts the overall project timeline. The timely acquisition of these components ensures that the fabrication and assembly processes can commence without delay.

3. Fabrication and Assembly

   Date: Q3 2025

   Significance: The fabrication and assembly of the SPS components are crucial stages. During this period, the systems are constructed according to the detailed engineering designs. This phase requires precision engineering and quality control to ensure that the systems meet the required specifications and standards.

4. Quality Assurance and Testing

   Date: Q4 2025

   Significance: Comprehensive quality assurance and testing are conducted to verify the performance and reliability of the SPS. This includes functional tests, stress tests, and compliance checks. Successful completion of this milestone ensures that the systems are ready for deployment and operational readiness.

5. Logistics and Transportation

   Date: Q1 2026

   Significance: The logistics phase involves the transportation of the fabricated SPS components to the project sites. Efficient logistics planning is essential to minimize downtime and ensure that the systems reach their destinations on schedule. This milestone is critical for maintaining the project’s momentum and avoiding delays.

6. Installation and Integration

   Date: Q2 2026

   Significance: The installation and integration of the SPS components on the project sites are the final stages before commissioning. This phase requires coordination between Vår Energi’s teams and the contractors responsible for the installation. Successful integration ensures that the systems function seamlessly and contribute to the overall project efficiency.

7. Commissioning and Start-Up

   Date: Q3 2026

   Significance: Commissioning involves bringing the SPS online and ensuring that all systems are operational. The start-up phase is critical for verifying that the systems meet the performance expectations and that there are no issues that need to be addressed. This milestone marks the beginning of oil and gas production, aligning with Vår Energi’s production targets.

8. Final Delivery

   Date: Summer 2027

   Significance: The final delivery milestone marks the completion of the SPS project. This phase includes the handover of the systems to Vår Energi and the formal acceptance of the work. The successful completion of this milestone signifies the achievement of Vår Energi’s goals for accelerating project development times and ensuring efficient oil and gas production.

Significance of Milestones

The delivery timeline and key milestones for the SPS are designed to accelerate Vår Energi’s project development times and ensure efficient oil and gas production. The strategic planning and execution of these milestones are essential for meeting the company’s production targets and maintaining a competitive edge in the oil and gas industry. The collaboration with OneSubsea, along with the efficient management of the project phases, will enable Vår Energi to achieve its goals and deliver significant value to its stakeholders.

Strategic Partnerships and Benefits

Vår Energi’s strategic partnerships with OneSubsea, Ocean Installer, and Saipem are pivotal in accelerating the company’s oil and gas project developments. These collaborations have led to significant improvements in standardization and reduced lead times, which are crucial for enhancing project efficiency and reducing costs. The benefits of these partnerships are multifaceted and have a profound impact on Vår Energi’s operational capabilities.

OneSubsea Collaboration

OneSubsea, a joint venture between Schlumberger and Aker Solutions, has been a key partner in Vår Energi’s subsea endeavors. The collaboration with OneSubsea has enabled Vår Energi to streamline subsea tie-back development times by up to one year. This has been achieved through the pre-commitment of a complete Subsea Production System (SPS), which includes a standard four-well slot template and a single well satellite structure. The agreement ensures that the necessary parts for drilling are delivered in 2026, with the entire system to be delivered by summer 2027. This pre-commitment not only accelerates project timelines but also secures materials and reduces delivery times, facilitating continuous fast-track deliveries into Vår Energi’s project portfolio. The strategic partnership with OneSubsea has been instrumental in achieving Vår Energi’s goal of developing projects from discovery to production in less than four years, thereby supporting the company’s plan to sustain production at 350-400 thousand barrels of oil equivalent per day towards 2030 Vår Energi, OneSubsea collaborate to speed up tiebacks.

Ocean Installer Partnership

Ocean Installer, another strategic partner, has contributed to Vår Energi’s subsea project development by providing expertise in fabrication, delivery, and installation of subsea production equipment. The partnership covers all Vår Energi’s operated assets and projects on the Norwegian Continental Shelf (NCS), ensuring priority, competence, and capacity to support project development. This collaboration has been crucial in transforming project developments by standardizing processes and shortening lead times. The integration of Ocean Installer’s capabilities has further reduced project development time and cost, aligning with Vår Energi’s strategic goals Vår Energi Pre-Orders Subsea Systems To Accelerate Oil.

Saipem’s Contribution

Saipem, an Italian multinational oilfield services company, has also played a vital role in Vår Energi’s subsea project developments. The partnership with Saipem involves the design and execution of large-scale offshore projects for the production and transportation of hydrocarbons. Saipem’s technological competence in gas monetization and heavy oil exploitation has been instrumental in enhancing Vår Energi’s project development capabilities. The collaboration with Saipem has been instrumental in achieving Vår Energi’s goal of developing projects from discovery to production in less than four years, thereby supporting the company’s plan to sustain production at 350-400 thousand barrels of oil equivalent per day towards 2030 Vår Energi pre-commits subsea systems to speed up.

Benefits of Standardization and Reduced Lead Times

The standardization and reduced lead times achieved through these strategic partnerships have several benefits for Vår Energi. Firstly, they accelerate project development times, allowing Vår Energi to bring projects to production more quickly. This is particularly important in a competitive market where timely delivery of projects can provide a significant advantage. Secondly, the reduced lead times lead to cost savings, as they minimize delays and associated expenses. Additionally, the standardization of processes ensures consistency and reliability in project execution, reducing the risk of errors and rework. This, in turn, enhances the overall efficiency of Vår Energi’s operations and supports the company’s goal of sustaining high production levels.

In conclusion, Vår Energi’s strategic partnerships with OneSubsea, Ocean Installer, and Saipem are essential for accelerating project development times and ensuring efficient oil and gas production. These collaborations have led to significant improvements in standardization and reduced lead times, which are crucial for enhancing project efficiency and reducing costs. The benefits of these partnerships are multifaceted and have a profound impact on Vår Energi’s operational capabilities, supporting the company’s strategic goals and market position.

Project Portfolio and Production Goals

Vår Energi’s high-value early-phase portfolio consists of over 20 projects, with a target of developing these projects from discovery to production in less than four years. This strategic focus is underpinned by the company’s pre-commitment to subsea systems, which aims to reduce project development time by up to one year. This initiative, in partnership with OneSubsea, is designed to streamline the delivery of Subsea Production Systems (SPS), thereby accelerating the development process and enhancing overall efficiency. The company’s end-2025 production target is set at around 400 thousand barrels of oil equivalent per day (kboepd), reflecting a commitment to sustained high-value production. This portfolio is supported by eight sanctioned development projects, which are well into execution with committed investments. Vår Energi’s ambition is to achieve project break-evens of around USD 35 per barrel, underscoring its focus on cost efficiency and financial viability. The company’s operational performance and high realized prices position it as one of the fastest-growing E&P companies in the quarter. Vår Energi project portfolio and operational update

Conclusion

Vår Energi’s pre-order of Subsea Production Systems (SPS) from OneSubsea represents a significant strategic initiative. By leveraging standardized equipment and strategic partnerships, Vår Energi aims to accelerate project developments and meet ambitious production targets. This move not only positions Vår Energi as a leader in the Norwegian oil and gas sector but also sets a precedent for other industry players to adopt similar efficient practices.

Sources

• OEDigital – Vår Energi Pre-Orders Subsea Systems To Accelerate Oil and Gas Developments
• Marine Technology News – Vår Energi Orders Subsea Systems
• Offshore Energy – Vår Energi’s Precommitment to Subsea Systems To Cut Tie-Back Development Time by Up to One Year
• Offshore Magazine – Vår Energi, OneSubsea Collaborate To Speed Up Tiebacks Offshore Norway
• Cision – Vår Energi Pre-Commits Subsea Systems To Speed Up Developments
• Vår Energi – Vår Energi Project Portfolio and Operational Update