Vår Energi, BlueNord agree to merge
Vår Energi has agreed to merge with Denmark-focused BlueNord in a transaction that would create one of northwest Europe’s largest independent oil and gas producers, while expanding the company's access to key gas export infrastructure serving European markets.
The announcement comes as Vår Energi also advances major subsea developments and drilling programs across its Norwegian Continental Shelf portfolio.
Proposed merger expands North Sea footprint
Vår Energi and BlueNord have agreed to combine their businesses in northwest Europe.
BlueNord, as a member of the Danish Underground Consortium, has interests in multiple producing fields operated by TotalEnergies offshore Denmark, including the Tyra, Halfdan, Dan and Gorm hub areas.
Collectively, these should deliver net production from 2026 of about 45,000 boe/d, and 195 MMboe of net 2P reserves and near-term 2C contingent resources, which could extend production beyond 2040.
All are close to Vår Energi’s existing assets in the southern Norwegian Continental Shelf, with similar offshore characteristics, the company reported.
The boards of both companies have approved the proposed transaction, which they are aiming to close around the end of this year.
Vår Energi will establish a new subsidiary that will be merged with BlueNord. This will generate long-term production of about 450,000 boe/d, with 2.4 Bboe of reserves and resources, and operating costs in the range $10-11/boe.
For Vår Energi, the combination opens access to two new gas delivery points to the European market, Nybro and Den Helder in Denmark and the Netherlands.
Why this news matters:
- The merger reflects a broader trend toward consolidation among offshore independents as companies seek larger production bases, longer reserve life and greater scale to fund future developments while managing costs in a competitive energy market.
- By combining assets across Norway and Denmark, the new company would strengthen its position as a key supplier of North Sea oil and gas, reinforcing the region's role in supporting Europe's long-term energy security.
SLB OneSubsea wins Balder and Goliat contracts
The company has awarded SLB OneSubsea two contracts for subsea production infrastructure at its Balder and Goliat fields offshore Norway.
One covers design and delivery of gas export capabilities to support the new Goliat gas export project in the Barents Sea, contributing to European gas supply through connection to the Snøhvit subsea pipeline system and the Melkøya LNG plant in northern Norway.
It will also extend the life of the Goliat Field by providing an alternative to gas reinjection. SLB OneSubsea will supply four well systems on single-can satellite configurations and associated umbilical systems.
The other contract, under the Balder Next New Wells project, covers four well systems on single-can satellite configurations and associated umbilical systems. Multiphase meters are included in the supply scope for both projects.
Eldfisk, Balder and Breidablikk projects progress
In a second-quarter update on its activities offshore Norway, Vår Energi said the ConocoPhillips-operated Eldfisk North Extension project in the southern North Sea has started production ahead of schedule.
During the first half of the year, the company participated in four new wells at Grane/Breidablikk in the North Sea (operator Equinor) and added one new Balder Phase V well.
Three further new wells on Grane/Breidablikk and five new wells on Balder/Ringhorne should follow by year-end, including the Balder Phase VI well that is scheduled for the fourth quarter.
Equinor has upgraded 2P reserves at the Breidablikk Field by 50% from the target in the plan for development and operations that it submitted in 2021.
This follows improved and successful placement of the horizontal development wells at the top of the reservoir, Vår Energi said, and better-than-anticipated reservoir performance. As a result, total recoverable reserves and resources are estimated at about 350 MMboe.
Work is underway on the Breidablikk Phase 2 development, featuring new subsea templates to exploit the upside resources. Potentially, the Grane platform could now host Brediablikk’s production through 2060.
Future developments advance toward sanction
In the Snorre area of the North Sea, the Equinor-led partnership is targeting sanction of the Beta and Dugong field developments in 2027 as a coordinated subsea tieback (80 MMboe) to the Snorre facilities.
An infill well currently drilling at the Fenja Field in the Norwegian Sea should go onstream in due course. In the same area, last year’s Vidsyn discovery is being matured with a view to project sanction in 2027.
The discovery, which could hold up to 100 MMboe of good-quality gas condensate, lies 8 km from the Fenja subsea infrastructure, which is connected to the Njord host platform. The partners are considering further exploration to optimize the development.
About the Author
Jeremy Beckman
Editor, Europe
Jeremy Beckman has been Editor Europe, Offshore since 1992. Prior to joining Offshore he was a freelance journalist for eight years, working for a variety of electronics, computing and scientific journals in the UK. He regularly writes news columns on trends and events both in the NW Europe offshore region and globally. He also writes features on developments and technology in exploration and production.