Vår Energi has announced ambitious production growth targets, aiming to reach over 400,000 barrels of oil equivalent per day (boepd) by the fourth quarter of 2025, driven by nine planned project start-ups. Full-year 2025 production is projected at 330,000-360,000 boepd, with production maintained around 400,000 boepd in 2026 and organically sustained between 350,000 and 400,000 boepd towards 2030. The company anticipates high-value barrels will reduce production costs to approximately $10 per boe in Q4 2025, with full-year 2025 costs estimated at $11-12 per boe.
These nine 2025 project start-ups are expected to add 180,000 boepd at peak. Vår Energi’s capital expenditure (capex) for 2025 is estimated at $2.3-2.5 billion, with an average annual capex of $2-2.5 billion through 2030.
With a strong resource base exceeding 2.1 billion boe of net proved plus probable (2P) reserves and 2C resources, Vår Energi plans to advance over 25 early-phase projects, targeting to surpass 500 million boe net 2C contingent resources and sanction around eight new development projects this year. Exploration activities on the Norwegian Continental Shelf (NCS) will increase to approximately 20 wells and about $350 million in expenditure, with roughly 50% to be drilled in the next four years.
“2025 is transformational for Vår Energi,” said CEO Nick Walker. “With production set to grow above 400 thousand barrels of oil equivalent per day (kboepd) in the fourth quarter and remain at around 400 kboepd in 2026. Towards 2030, we plan to organically sustain production of 350 to 400 kboepd by capturing the value upside in our high-quality assets with a net resource potential of over 3 billion barrels. To deliver, we are stepping up the pace and activity level, moving more than 25 early-phase projects forward faster, with a target to sanction up to eight projects in 2025. Furthermore, we are accelerating infill drilling, increasing exploration activity, while becoming carbon neutral in our operational emissions by the end of this decade.”
Vår Energi confirmed continued progress on the Equinor-operated Johan Castberg and Halten East projects, targeting start-up in Q1 2025, and its own FPSO Jotun at Balder, targeting start-up by the end of Q2 2025. Equinor recently anchored the Johan Castberg FPSO to the seabed.
The company also plans to sanction Balder Phase V in Q4 2024, with start-up targeted for late 2025. Following six discoveries in 2024, including two in Q4, with a near 50% exploration success rate, drilling activities are planned to begin in H1 2025 and conclude in 2026, with first wells on stream by the end of 2025 via subsea tie-back to the FPSO Jotun.
The Balder X project, targeting a Q2 2025 start-up, aims to recover around 200 million barrels of additional reserves from the Balder-Ringhorne area, extending production to 2045 as part of the Balder Future re-development. Vår Energi is also committed to reducing Scope 1 operational emissions by over 50% by 2030 and achieving carbon neutrality in net equity operational emissions by 2030 through carbon capture offsets.