Var Energi approves Goliat gas export concept selection

Vår Energi has approved concept selection (DG2) for gas export from Goliat oil and gas field to the Snøhvit pipeline for further transport to Hammerfest LNG. 

The license partners are further maturing the project towards a final investment decision (FID), expected second-half 2024. 

Goliat, which lies in the Barents Sea about 80 km northwest of Hammerfest in water depths of 360-420 m, began production in 2016. Since then, gas from the field has been 2016 been re-injected into the reservoir. Production from the field was 17,500 boe/d in this year’s third quarter, down from 17,900 boe/d in second-quarter 2023, and down from 19,200 boe/d in third-quarter  2022.

The field is currently developed with a cylindrical floating production, storage, and offloading vessel. It produces oil from sandstone of Triassic age in the Kobbe and Snadd formations, and in the Kapp Toscana Group (Realgrunnen subgroup) of Triassic to Jurassic age. The reservoirs have thin gas caps and lie in a complex and segmented structure at depths of 1,100-1,800 m, according to Norwegian regulators.

To ensure optimal oil production in the future a solution for evacuation of gas from the reservoir is needed, the operator said (OGJ Online, Apr. 26, 2023).

The Barents Sea is a key hub area for Vår Energi, said chief operating officer Torger Rød.

“The region represents a major part of our future growth strategy. We are operator for Goliat and have ownership in more than half of all the active licenses, a 30% share in [Equinor Energy-operated] Johan Castberg and a 12% share in [Equinor-operated] Snøhvit to be included in the portfolio following the integration of Neptune Energy Norge. With this decision we are one step closer to increasing the recovery from Goliat.”

The Goliat gas project is also an important step in finding a wider area solution for increased gas export capacity from the Barents Sea, currently being evaluated by Gassco.

Vår Energi is operator at Goliat with 65% interest. Equinor Energy AS holds the remaining 35%.