TechnipFMC Secures Major Subsea Contract for Vaar Energy's North Sea Developments

TechnipFMC has been awarded a significant integrated engineering, procurement, construction, and installation (IEPCI) contract by Norwegian operator Vaar Energy for subsea work on the Ofelia and Gjoa Nord discoveries in the Gjoa area of the Norwegian North Sea. The contract value is estimated between $500 million and $1 billion, and it falls under a five-year agreement signed in 2025 covering future subsea efforts, including these two developments.

Project Scope and Sanctioning

Vaar Energy sanctioned the broader Gjoa Subsea project on Thursday, which encompasses the Gjoa Nord, Ofelia, and Cerisa discoveries. These discoveries will be tied back to the existing Gjoa and Duva hubs. Norway's Ministry of Energy estimates total capital costs for the projects at approximately Nkr14 billion ($1.42 billion).

Production Timeline and Resources

First production is anticipated from Cerisa in 2027, followed by Ofelia and Gjoa Nord in 2028. According to Vaar, the discoveries collectively hold probable resources of roughly 76 million barrels of oil equivalent.

Ownership and Partners

Vaar Energy operates the Gjoa Subsea project with varying ownership stakes across the discoveries: 40% in Ofelia, 30% in Gjoa Nord, and 30% in Cerisa. Partners include Pandion, Harbour Energy, Aker BP, and DNO Norge AS in Ofelia; Petoro, Harbour, and OKEA in Gjoa Nord; and Inpex, Orlen, and DNO Norge AS in Cerisa.