Equinor and Vår Energi swap NCS interests to advance Peon, strengthen Gjøa positions
Equinor Energy AS and Vår Energi ASA agreed to exchange interests across several Norwegian Continental Shelf (NCS) licenses in a transaction aimed at advancing the Peon gas discovery and consolidating each company’s position in core areas.
“This transaction enables us to speed up progress of one of the largest undeveloped gas discoveries on the NCS, Peon, while strengthening our position in the Troll-Fram area,” said Kjetil Hove, executive vice-president for exploration and production Norway.
Vår Energi’s chief executive officer, Nick Walker, said the agreement “strengthens our position in the Gjøa area, one of our key operated hubs,” adding that operatorship and increased ownership of Peon “position Vår Energi to deliver long-term value from existing infrastructure.”
Under the agreement, Equinor will transfer 32.5% interest in Peon and operatorship to Vår Energi. In return, Equinor receives interests in producing assets and development licenses, including a 5% interest in Fram field and Vår Energi’s positions in the Grosbeak and Mulder discoveries and the Grønngylt prospect.
Equinor and partners have agreed on a tie-back concept for Peon to the Gjøa hub, with gas to be processed at Kårstø. Peon holds estimated recoverable resources of 105–195 MMboe and lies about 60 km from Gjøa.
The transaction forms part of Equinor’s broader NCS portfolio optimization, including recent swaps with Aker BP and DNO across Ringvei Vest, Yggdrasil, and Haltenbanken licenses.
Completion of the Vår Energi transaction, including operatorship transfer, is subject to customary approvals. Equinor will remain operator until closing.
Swap results
Equinor receives:
- 5% in Fram field (PL090, PL090E, PL090I and PL1179), increased ownership to 50%.
- 40% of Mulder and Grønngylt discoveries (contingent on carve-out of Fram PL090), increased ownership to 85%.
- 15% in PL090JS and 10% of PL925, both part of the Grosbeak discovery, increased ownership to 36% and 76%, respectively.
Vår Energi receives:
- 32.5% in Peon (PL269, PL318, PL318B, PL318C, and PL318D) including operatorship, Equinor retains 67.5% ownership in PL269 and 27.5% ownership in PL318, PL318B, PL318C, and PL 318D.