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.

Contract Framework and Project Sanctioning

This award is part of a five-year agreement signed between TechnipFMC and Vaar Energy in 2025, covering future subsea efforts including Gjoa Nord and Ofelia. Vaar Energy has sanctioned the broader Gjoa Subsea project, which encompasses the Gjoa Nord, Ofelia, and Cerisa discoveries. These discoveries will be tied back to the Gjoa and Duva hubs. Norway's Ministry of Energy estimates capital costs for the projects at Nkr14 billion ($1.42 billion).

Production Timeline and Resource Estimates

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

Ownership and Partners

Vaar Energy operates the Gjoa Subsea project with varying ownership interests across the discoveries:

• Ofelia: Vaar holds a 40% interest, with partners including Pandion, Harbour Energy, Aker BP, and DNO Norge AS.
• Gjoa Nord: Vaar holds a 30% interest, with partners including Petoro, Harbour, and OKEA.
• Cerisa: Vaar holds a 30% interest, with partners including Inpex, Orlen, and DNO Norge AS.