TechnipFMC PLC has received a contract to execute the Vår Energi ASA-led Ofelia and Gjøa Nord development projects on Norway’s side of the North Sea.
TechnipFMC did not specify the value of the integrated engineering, procurement, construction and installation contract but said it was a “large” award, which the company defines as ranging from $500 million to $1 billion.
“This direct award follows a five-year collaboration agreement signed in 2025 to deliver subsea projects utilizing TechnipFMC’s integrated model and accelerate development through coordinated portfolio execution”, it said in a press release.
TechnipFMC president for subsea Jonathan Landes said, “Vår Energi is applying a portfolio approach in the Gjøa area to reduce project cycle time and improve project returns. This approach requires deep collaboration and is enabled by TechnipFMC’s unique integrated execution model. We are pleased to support Vår Energi’s ambition to deliver first oil within two years.”
Vår Energi announced the final investment decision for the Gjøa Subsea Projects June 25, targeting about 76 million barrels of oil equivalent gross proven and probable reserves.
The projects will tie back the Cerisa, Gjøa Nord and Ofelia discoveries to the existing Gjøa and Duva infrastructure.
“First production is expected from Cerisa in the third quarter of 2027, followed by start-up from Ofelia and Gjøa Nord in the second half of 2028”, Vår Energi said.
“The project contributes to extending the economic lifetime of the area from the early 2030s to around 2040, while strengthening the basis for further tie-back developments and near-field exploration”, the company added.
“By increasing throughput for the Gjøa asset, the project is expected to reduce unit production costs, improve the economics of existing fields and support further resource development in the broader Gjøa area”.
Vør Energi chief operating officer Torger Rød said, “The project strengthens Gjøa as a long-term production hub and supports our target to produce more than 400 thousand barrels of oil equivalent per day long-term”.
Vår Energi operates the Gjøa Subsea Projects. Currently it owns a 40 percent stake in Ofelia, 30 percent in Cerisa and 30 percent in Gjøa Nord.
In production license (PL) 929, which includes Ofelia, Harbour Energy Norge AS and Pandion Energy AS each own 20 percent. Aker BP ASA and DNO Norge AS each own 10 percent.
In the Cerisa license (PL636), INPEX Idemitsu Norge AS and ORLEN Upstream Norway AS each hold 30 percent. DNO owns 10 percent.
In the Gjøa Nord license (PL153), Petoro AS has 30 percent, Harbour 28 percent and OKEA ASA 12 percent.
Ofelia and Gjøa Nord’s ownership structures will change following a series of transactions recently signed by Vår Energi to bolster its position around the Gjøa infrastructure and refocus investment on “high-value opportunities”.