Transcription
Annual Report 2020
Table of contentsWho we are2How we contributeVår Energi in 20204Sustainability25Vision5Climate risks and opportunities27Values6Research and development32Key objectives and strategies7Digitalisation and performance improvement (D&I)342020 achievements9Corporate social responsibility (CSR)35The history of Vår Energi10Track record11Operational and financial highlights12Board of Director’s report38Letter from the CEO13Consolidated financial statements with note disclosures69Asset portfolio14Parent company financial statements with note disclosures97Hub strategy15Auditor’s report119Operated fields16Partner-operated assets (POA)17Projects under development18Exploration20Financial policy and capital structure21Diversity and gender balance22Leadership team23Annual Report 2020How we perform
Who we are3Annual Report 2020
Who we areVår Energi in 2020ProductionEBITDAX *265Production16 533kboepdLicenses136#Production and transportation cost10.4USD per barrel* Adjusted for special items4Annual Report 2020Producing fields35#NOK millionProven and probable reserves (SEC)1 147mmboeNIBD / EBITDAXEmission intensity operated fields2.77.0XKg CO2 eq per boeOperating revenues27 028NOK millionTRIF3.5X
Who we areOperationsVisionVår Energi’s vision:”Committed to delivera better future”Vår Energi is committed to deliver positive growth;sustainable environmental, climate and social impactstaken into consideration.We shall be safe and deliver on expectations, be thepartner of choice and together we shall build a betterfuture for our stakeholders and society at large.Safe and sustainableIn Vår Energi every day is about extracting natural resources ina safe and reliable manner. Our highest priority is the health andsafety of our personnel in all business activities. We aim to takeindustry leadership in ensuring safe operations and minimumimpact on the environment.ExcellenceCurious and agileWe believe in combining people, process and technology to dothe right things the right way - without compromising on safety,best practice or ethical working standards. We aim to be an agileadopter – utilising existing digital ecosystems with proven valueto learn fast through collaboration with others.SocietyEngaged and reliableWe believe that our activities should benefit the communitieswhere we operate. This means actively engaging in creating localripple effects in terms of industrial development and employmentas well as supporting competence building and culturalactivities.5Annual Report 2020
Who we areGrowthValuesPeople - our greatest assetOur values support our common direction, shape the culture andreflect desired behaviour in Vår Energi. Our values are integratedin our decision-making process.The value principles – Growth, Integrity, Will to Win, Inspiringand Team Player – provide a common guideline for all Vår Energiemployees and help us develop and grow in line with our valuefoundation.Our employees are by far ourgreatest asset. We seek to maintain,attract and further develop a diverseworkforce that supports Vår Energi’smain objectives and vision. We take personal leadership and ownership of tasks withinour area of responsibility. We take ownership of personal development and learning.Integrity We take personal responsibility for our safety and the safety of others. We maintain high ethical working standards and followrequirements and processes. We behave in a respectful manner towards co-workers andall stakeholders.Will to win We continuously look for improvements in the way we work. We are dedicated to reach targets and prioritise value-added work.Inspiring We strive to be role models in order to create an optimistic andinspiring work environment. We show flexibility towards our co-workers and new ways of working.Team player We actively contribute to cooperate and share informationwithin our team and across functions. We take responsibility and work towards our common goals.6Annual Report 2020
Who we areKey objectives and strategiesOur main objective is to continue developing Vår Energi’s position as a leading, growing, sustainable and profitable independent oil and gas company on the NCSHow Vår Energi creates value Vår Energi’s primary value creator is the safe and responsible exploration,development and production of hydrocarbons. We strive for technical excellence and innovation along the entire value chain,embracing continuous improvement, innovation and new technologies. We are building on the long-lasting expertise from our proud heritage andsuccess as a leading and efficient operator and a “partner of choice”. We will continue to build our core business based on our strategic pillars thatform the economical and strategic foundation of the Company.Strategic pillarsOperational Excellence7 Excellence in safety and environmental protection. Protect base production and maximise uptime,production efficiency and recovery –“Every Barrel Every Day”. Be a constructive, proactive and a preferred partner. Utilise R&D and digitalisation opportunities to unlockundiscovered potential in all parts of our activities. Maximise monetisation of production - secureoptimum transportation and processing solutions. Develop and take an active part in strategicallyshared collaboration platforms with both internaland external stakeholders.Execute ProjectsExplorationFinance and the way we work Secure project economics through sound technicalbasis and execution performance. Fast track resources to reserves and maximisethe reserve replacement ratio. Safely execute ongoing development projectswith high quality and on time and budget. Extend production plateau of existing hubs; focuson near field, short time to market and timecritical barrels. Explore new opportunities able to deliverstand-alone production hubs. High-grade license portfolio; focus on value, acreagequality, operatorships and high participation interest. Optimise financial structure and ensure a soundbalance between cash flow, investments, debtservice and returns. Improve the way we work; develop efficientbusiness processes and systems. Build high performing teams where people arecontinuously developed, drive value creation,functional excellency, embrace diversity andlive our values as “One Team”.Annual Report 2020
Who we areOur core-business is safe andresponsible exploration, developmentand production of hydrocarbonsas a leading operator and partnerof choice.8Annual Report 2020
Who we areDG3 on Sleipner Power from Shore in MayBreidablikk PDO submitted to MPE in SeptemberA Gender Balance task force was establishedto ensure that the Company’s gender balanceobjectives are metUpgrade of Ringhorne drilling rig completed,additional infill drilling targets matured andRinghorne infill drilling program III startedThe Company’s performance improvement program “Realise ourPotential” (ROP) established in 2019 has delivered above target in2020, mainly driven by opex and efficiency improvementsJotun FPSO moved to dry dock forrefurbishment and upgrade in JuneHub strategy completed andapproved by the BoardAwarded 17 licenses in APA 2019in January of which 7 operatedAdditional diversification of the Company’s debtprofile secured by entering into a Credit DiscountAgreement with a group of banks to further optimiseworking capital and reduce financing cost2020 achievementsFirst oil from Snorre Expansion Project(SEP) delivered ahead of planFrosk discovery matured and passed DG1 in Mayand Tommeliten Alpha DG2 in SeptemberContinued contract portfolio optimisationdelivering significant cost savings and amore robust and sustainable supplier base9Annual Report 2020Strategic inventory and warehouse activitiesinitiated to reduce cost and carbon footprintPlan for Development and Operation (PDO)for the Balder X project approved by the Ministryof Petroleum and Energy (MPE) in JuneHigh activity and many strategic milestones deliveredin 2020 despite an extraordinary yearDecommissioning of Jotun B completedsafely and according to scheduleSecured additional funding through a combination of increasedavailability under the Reserve Based Lending (RBL) facility and2 unsecured Revolving Credit Facilities (RCFs)Successful Goliat 4D seismic survey completedahead of schedule and below budgetDelivered 11 digital projects including anEnergy Management System (EnMS)enabling Vår Energi to reduce energyconsumption and CO2 emissionsStart-up Ekofisk 2030 project aimingto extend production towards 2050in the Greater Ekofisk AreaFirst oil on Tor II in Decemberaccording to planStudies and multiple projects completedto secure Balder Floating Production Unit(FPU) lifetime extensionSignificant improvement in uptimeachieved on the Goliat fieldThe Company’s first “SustainabilityReport” published in 2020Cultural framework and Vår Energivision statement establishedCost-cutting initiatives executed ahead of plan,additional measures implemented as a consequenceof lower oil prices following the Covid-19 pandemic7 non-operated exploration wells drilled- 3 commercial discoveries made and onediscovery under evaluation
Who we areThe history of Vår EnergiOn 10 December 2018, Vår Energi was established through the merger of Eni Norge(69.85 per cent) and Point Resources (30.15 per cent).Through Point Resources’ acquisition of the Norwegian ExxonMobil operated portfolioin 2017, Vår Energi currently holds the very first license issued on the NCS (PL001).On 10 December 2019, the agreement with ExxonMobil to acquire its partner-operatedupstream assets in Norway was completed. The transaction included ownership interests inover 20 producing fields including Grane, Snorre, Ormen Lange, Statfjord and Fram. Followingthe ExxonMobil acquisition, Vår Energi became the largest independent producer on the NCS.Eni Norge was founded in 1965 as Norsk Agip and had an active role in the Ekofiskfield discovery. Eni Norge also discovered Goliat in the Barents Sea in 2000.2015Point Resourcesestablished.10Annual Report 2020Point Resources was created through the merger of HitecVision portfolio companies CoreEnergy, Spike Exploration and Pure E&P in 2015. Point Resources acquired the Norwegianoperated business of ExxonMobil in 2017, including transfer of 300 employees and 50years’ legacy of operations in the NCS.2017Acquisition of ExxonMobil’soperated NCS portfolio.2018Vår Energiestablished.2019Acquisition of ExxonMobil’snon-operated NCS portfolio.
Who we areTrack recordVår Energi is founded on more than 50 years of successful operation and exploration on the NCSOperated by Vår EnergiOperated by Vår EnergiSNORREMIKKELRINGHORNEBAUGEFirst oil in 1992 — willproduce beyond 2040Subsea production facilitytied back to MidgardPlatform drilling will unlockfuture potential in Balderand RinghorneUnder development asa subsea tie-back toNjord ATyrihansStatfjordFirst license on NCS(PL001) takkMore than 19 million tonnesof CO2 stored in the Utsiraformation since 1996JotunVigdisKristin1995NorneTordisRinghorne East20002005Annual Report 20202010Frosk2015SvalinFenjaOrmen LangeGRANEGOLIATKey hub - close toBalder and BreidablikkFirst oil field in theBarents SeaOperated by Vår Energi11GarantianaIllustration: Render AS / EquinorSLEIPNERFram1990Photo: Øyvind Hagen / EquinorPhoto: Øyvind Gravås and Bo B. Randulff / EquinorPhoto: ConocoPhillips NorgeFirst field in productionon the NCSBreidablikk1985ÅsgardEKOFISKIllustration: EquinorFirst oil discoveryon the NCSIllustration: EquinorPhoto: Bo B. Randulff and Even Kleppa / EquinorBALDERJOHAN CASTBERGDevelopment costreduced by 50 per centfrom intial estimate2020
Who we areKey operational and financial summaryOperational and financial highlights27 028 14 070Operating revenues NOK millionCash flow from operations NOK millionOperational summaryProved reserves (SEC)mmboeProved and probable reserves (SEC)mmboeProducing fields#Operated productionkboepdPartner-operated productionkboepdTotal production *kboepdProduction and transportation cost USD / boe20207101 147354821826510.420198141 1827 0287 80135 92125 2167 46818 51422 1134 11113 572-8 893-8 514-5 5656 7026 7992 5118 5418 1092 378Cash flow from operating activitiesCash flow used in investing activitiesCash flow from financing activitiesbefore dividendsDividendsNet cash flow after dividendsCash position14 07017 0924 93111 97938 4737 70715 8013 7339 5414 3825492 32414 712-7 0051 7911 0008 5418 777Total assetsEquityNet interest-bearing debt (NIBD)EBITDAXNIBD / EBITDAX131 967 133 50312 03122 11145 318 40 46816 533 16 0682.72.582 17921 551-3 14016 788-0.2* Pro-forma production in 2018 and 2019 (see note 2.1 and 2.2)Financial summary (consolidated)(NOK million unless otherwise stated)EBITDAX (NOK million *)Petroleum revenues and gainon realised put options16 06816 5335052981916 7881 62220 00015 00010 0002626949949(NOK million)5 00018 27602018* Adjusted for special items12Annual Report 202020192020 Crude oil Gas NGL Gain on realised put optionsOperating revenuesProduction costTotal operating expenses includingDD&A and impairmentsEBITProfit before income taxesProfit for the periodX
Who we areBy the end of the month, well ahead of the national lockdown, the first restrictive procedures were introducedto the organisation. Through Norwegian oil and gas acommon collaborative framework for the industry tomanage the situation, was taking shape. Despite earlypreparations, it was impossible to predict the full extentand all-encompassing magnitude of the pandemic.Through our Board, Vår Energi received strong support andguidance from both our owners, Eni SpA and HitecVision.Our Italian colleagues, also hit by the situation, sharedvaluable information, which helped us calibrate our linesof defence. New priorities were set to contain the financialsolidity of the Company. Non-essential activities werepostponed and drilling and exploration plans were put on hold.The temporary fiscal measures to support the industryintroduced by the Parliament in June allowed for plans onhold to be put back on the table. The Balder Future projectcould move ahead as planned and drilling and explorationactivities commenced, securing jobs as intended by theParliament.Letter from the CEO2020 – The year that was to be differentDuring the first weeks of 2020, news of a potentiallylethal virus spreading across the world started to emerge.In early February, we realised the need to start preparingfor the worst. An internal task force, consisting of variousexperts and work force representatives, was summonedto evaluate the potential risks and consequences of apandemic reaching our shores. Its mandate was to createa framework for preventive measures to prepare andprotect our Company from Covid-19.13Annual Report 2020Through the determination of our people, we deliveredstrong operational performance and reached severalstrategic milestones in 2020 despite the extraordinarycircumstances.The upgrade of the Ringhorne drilling rig was completed,drilling started, and additional infill drilling targetsmatured. The decommissioning of Jotun B was completedsafely. In the Barents Sea, significant improvement inuptime and reduction of operating expenses on theGoliat field were achieved. Ground-breaking technologicaladvancement was made on the field by completing amultilateral retrofit setting a new oil discovery in productionthrough an already producing well.Vår Energi took major steps in becoming a more sustainablecompany. Ambitious CO2 emissions reduction targetswere set. In line with industry goals and Parliamentaryexpectations, Vår Energi aims for a 50 per cent cut by2030 and to reach close to zero by 2050. A process ofelectrifying the Balder/Grane fields in the North Sea wasinitialised, as was a concept study for ammonia productionwith CCS for evacuating gas from the Alke/Goliat fields.Through the electrification of Goliat, production wasalmost entirely powered with electricity from shore,cutting 300 000 tonnes of CO2 emissions comparedto conventional offshore power production.These are a few examples of many key accomplishmentsin 2020. And most importantly – without serious hurts noranyone being infected by Covid-19 on any of our offshoreinstallations.I am confident that Vår Energi is now an even stronger,more robust and better equipped company than before thepandemic. In the midst of the crisis, we introduced a new,clear and common vision: Committed to deliver a betterfuture. Vår Energi is a unification of several strong legacycompany cultures with a common set of shared values. Itis an organisation which knows its strengths and potential.I leave this company with mixed feelings to take on theposition as CEO for Petoro. However, I am proud to handover an organisation with people of confidence, directionand purpose to its new chief, Torger Rød.I wish Torger, the owners and all my great colleagues thebest for the future.Best regards fromKristin F. KragsethCEO
Who we areNAsset portfolioA large and diversified portfolio across the NCSVår Energi’s portfolio on the NCS consists of a balanced mix of more mature operatedassets (Balder and Ringhorne area) with a strong track record and large reserve base,operated fields that more recently started production (Goliat) as well as growthdriving projects like Johan Castberg, Fenja and Balder X.HAMMERFESTLicenses136#aSeegi26 a n S e a%1mmboe147rwmmboer t h S ea 55 %1 147NoProven and probable reserves (SEC)Baren19%tsNoProducing fields35#OSLOOperatorships32#Link license map: varenergi.no/en/our-business/license-map14Annual Report 2020Production265kboepdSTAVANGER
Who we areHub strategyThe hub strategy was formulated early 2020 following an extensive evaluation of the Company’s asset portfolio.The hub strategy is built upon Vår Energi’s experience and track record on the NCS.The hub strategy aims to support the Company inthe following key areas: Identify strategic focus areas. Execute value accretive investment decisions. Optimise and balance the asset portfolio. Maintain existing production levels. Identify growth opportunities and build productionupside at low cost. Optimise use of personnel.As part of Vår Energi’s hub strategy all assets areclassified either as high value assets, assets withrapid-time-to-market potential, lifetime extenders,assets with future potential and assets withcurrently limited exploration potential identified.For each of these asset classes, separate asset strategiesare formulated to maximise value. The strategies includecontinuous or selective drilling, secure additional acreage,prospect identification maturation, identify assets withnew hub potential etc.1) Maximisation of oil and gas production2) Collaboration between departmentsThe strategies are further tested against the Company’skey performance targets for production efficiency, costper barrel, break-even targets, investment hurdles (IRR),finding cost per barrel and impact on the environment.3) Unique insight and understandingThe hub strategy requires close collaboration acrossfunctions like operations, partner operated assets (POA),project development, commercial, business development,exploration, drilling and finance.4) Creating competitive advantage and valueEstablishing Vår Energi’s hub strategy - leveraging competitive insight and advantages to capture valuePhase 1: 15Establish base profiles for each asset.Rank assets based on pre-defined criteria.Secure cross-functional involvement.Perform initial economics and profitability analysis.Annual Report 2020Phase 2: Identify additional opportunities within hubs, includingexploration wells and opportunities in the transactionmarket and concession rounds. Secure cross-functional alignment on plans and strategies. Perform capacity modelling and timing estimated.Phase 3: Rerun economics and profitability analysis.Firm up hub targets and strategies.Ensure alignment with corporate objectives and strategies.Establish action plans.Secure availability of sufficient resources (personnel and funding).
Who we areNd 48a teer oepdbOpk6%Pa rtn o p e rate r-edkboepd%218kkboepd54Maximising value of resources whilerelentlessly focusing on rne East%35Operated fields5%GOLIATGOLIATPursuing enhanced oil recovery through application ofnew technology.HAMMERFESTGoliat is the first oil producing field in the Barents Sea.The PDO was approved in 2009 and production startedin March 2016. The FPSO is powered from shore and CO2emissions are amongst the lowest in the industry.MARULKIl l ustr aSignificant improvements were achieved during 2020: Uptime increased from 68 per cent in 2019 to 93 percent in 2020. Operating costs were reduced by 20 per cent fromthe previous year. Executed 4D seismic acquisition and started infill drilling. Matured additional drilling targets.ti on:VårEnergiRINGHORNERINGHORNE EASTBALDER / RINGHORNEProtecting base production, improving asset integrity andmaturing resources.The Balder field was discovered in 1967 in license PL001.First oil from the area in 1999, with 556 mmboe produced fromthe Balder, Ringhorne and Ringhorne East by year-end 2020.Several strategic milestones were achieved in 2020 with theaim to capture significant future upsides in the area: Several high value drilling targets identified. King and Prince prospects scheduled for drilling in 2021. Plan for Development and Operations (PDO) for the BalderFuture project approved by the MPE in June 2020. Jotun FPSO moved to dry dock for refurbishment andupgrade. Upgrade of Ringhorne drilling rig completed, drillingof additional infill targets started at the end of 2020.Link license map: varenergi.no/en/our-business/license-map16Annual Report 2020OSLOSTAVANGERBALDER
Who we areN10 largest partneroperated fieldsPartner-operated assets (POA)The “partner of choice”184kpoepdVår Energi’s goal is to be recognised as an industry leader in NCSpartner-operated activities and seeks to maximise value frompartner-operated assets by leveraging technical expertise andapplying sound business judgement.The Company actively works to ensure that accidents are avoided,its see-to duty as a partner is fulfilled and that Vår Energi is valuedas being a proactive and constructive partner.Key achievements 2020 include: Breidablikk PDO submitted to MPE. DG3 on Sleipner Power from shore. Hub strategy completed and approved by the Board. First oil on Tor II delivered according to plan. Start-up of the Ekofisk 2030 project aiming to extendproduction to 2050 in the greater Ekofisk area. Frosk discovery matured and passed DG1. Tommeliten Alpha DG2 passed. First oil from Snorre Expansion Project (SEP) deliveredahead of plan.Åsgård 18,2%.Ekofisk 9,4%.Grane 9,1%.Mikkel 8,8%.Statfjord 7,5%.Tyrihans 7,5%.Ormen Lange 6,9%.Fram 6,1%.Snorre 5,9%.Sleipner 5%.MIKKEL85% of production in 2020from 10 largest partneroperated fields.GRANEThe ten largest partner-operaterd fields contributed with nearly85 per cent of total partner-operated production (184 kboepd)and 70 per cent of total 2020 production for the Company(265 kboepd).OSLOPartner-operated production218kboepdLink license map: varenergi.no/en/our-business/license-map17Annual Report 2020EKOFISKSTAVANGERHAMMERFEST
Who we areNJOHAN CASTBERGProjects under developmentIllustration: NeptuneNear-term development projects supportproduction growthVår Energi’s development projects are an important part of driving growthand maximising value. The Company is involved in several operated andnon-operated development projects that over the next 3 - 4 years willincrease the Company’s production to approximately 400 kboepd.FENJAHAMMERFESTOver medium-term, growth will come from new development projectssuch as Johan Castberg, Fenja, Bauge and Breidablikk, as well as furtherdevelopment of already producing fields, such as Balder.Strong development pipeline over the next few years:OperatorJohan Balder XVår Energi90%BreidablikkEquinorOrmen Lange P.IIIShell6.3%Tommeliten AlphaConocoPhilips9.1%LavransEquinor15%Eldfisk NorthConocoPhilips12.4%Balder VVår Energi90%* EstimateLink license map: varenergi.no/en/our-business/license-map18Annual Report 2020Vår Energi ownershipIllustration: EquinorDevelopment projectBREIDABLIKK42.2% *BALDER XOSLOSTAVANGER
Who we areJohan CastbergThe Johan Castberg field is located approximately 100 kilometers north of theSnøhvit field in the Barents Sea and was discovered in 2011. Joahn Castberg consistsof three discoveries: Skrugard, Havis and Drivis and is located in PL532. The PDOwas approved in 2018 and the development will contribute towards further strengtheningVår Energi’s position in the Barents Sea. The development will consist of an FPSOand 10 subsea templates, 2 satellites and 30 wells and Hammerfest will be usedas a supply and helicopter base during the operational phase. Equinor is the operatorof Johan Castberg.FenjaFenja is located in the Haltenbanken area in the Norwegian Sea, located 36 kmsouthwest of Njord. Fenja was discovered in 2014 with PDO approved in April 2018.Fenja is a cost- efficient development utilising existing infrastructure and will bedeveloped as a subsea tie-back to Njord A. Oil will be loaded to the Njord B FSOand exported by shuttle tankers with gas exported through the Åsgard transportsystem. Neptune is the operator of Fenja.BreidablikkA significant development through existing facilities. The Breidablikk project consistsof the development of the resources within the structure (discovered 1992) and theF structure (discovered 2013). The FID and PDO was submitted in September 2020.Breidablikk will be developed as a subsea tie-back to the Grane field with 4 x 6-slottemplates with up to 24 wells. Oil will be produced through two flowlines to Grane andfurther transported to the Sture terminal through the Grane Oil Pipeline. Equinor is theOperator of the Breidablikk development. Equinor is the operator of Breidablikk.19Annual Report 2020Balder XThe Balder X Project consists of the two sub-projects:Balder Future Project: Refurbishment and relocation of Jotun FPSO to accommodatetie-in of 13 new production wells and 1 new water injection well and with futureexpansion capacity to accommodate additional tie-ins in the area. Jotun FPSO willbe refurbished and relocated to between Ringhorne and Balder FPU and reconnectedto the Ringhorne Platform.Ringhorne Phase IV: Continuation of the Ringhorne Platform drilling activities, theRinghorne Phase III drilling campaign and execution of the Ringhorne Phase IV DrillingCampaign comprising 5 additional wells.The Balder X project enables further developments in the area.Balder X 2020 highlights: Production from the Jotun FPSO ceased in March 2020. The Jotun FPSO enteredthe yard in Stavanger in June 2020 and started the refurbishment program to extendits service life by 25 years. A revised PDO for the Balder Future project was approved by the Ministry ofPetroleum and Energy in June 2020. Fabrication of the subsea production system and subsea umbilical, risers andflowline has started and installation of flowline for template G and H is completed. Preparation of the West Phoenix rig for start of drilling is commenced. The project has been able to mitigate the effect of Covid-19 so far, howeverit is uncertain how the pandemic situation will impact the yard activities duringfurther ramp-up.
Who we areN2020 drilling performance8 exploration wells and 3 commercial discoveriesExplorationDuring 2020, Vår Energi has been active in all parts of the NCS throughexploration and appraisal drilling, licensing rounds and portfolio optimisation.The Company’s exploration strategy is focused on delivering commercialreserve replacement by identifying in- and near-field drilling prospectsin the established assets and core areas of the NCS combined with selectivehigh risk, high reward exploration in frontier areas.In January 2020, Vår Energi AS was awarded 17 new licenses in the APA 2019licensing round of which 7 as operator. In the APA 2020 licensing round, theCompany was awarded 10 licenses of which 5 operated. 3 of the operatedlicenses awarded are located close to the Company’s core hubs - Balder andGoliat, whereas 2 of the operated licenses awarded have new hub potential.2021 drilling performance3 commercial discoveries as of end of April: Johan Castberg: Isflak discovery with 31-50 mmboe recoverable oil. Fram: Blasto discovery with 75 -120 mmboe recoverable oil. Tyrihans: Tyrihans North Ile with 19-26 mmboe recoverable oil and gas.MISTISFLAKExploration wellsHAMMERFESTRØDHETTE2020 wells2021 wellsPartner-operated wellsOperated wellsGRINDA EXTENSIONIn 2020 the Company participated in 8 non-operated exploration wells.3 of the wells are considered commercial and one well is still under evaluationfor residual potential. One of the wells was concluded as a technical discoveryand 3 wells as dry.TYRIHANS ILE NGARANTIANA WKey priorities for 2021 include drilling of the operated King/Prince and Rødhettewells and follow-up of partner-operated wells.In 2021, Vår Energi has participated in 3 commercial discoveries *.In early March 2021, an oil discovery was made in the exploration well Isflak inlicense 532. The well was drilled around 10 km southwest from Johan Castbergand recoverable resources are estimated at 31-50 million barrels of recoverableoil equivalent. Vår Energi holds a 30 per cent ownership in this license.In late March 2021, an oil discovery was made in the exploration well Blasto,drilled around 3 km southwest from Fram and 11 km northwest of Troll.Recoverable resources are estimated at 75-120 million barrels of recoverableoil and Vår Energi holds a 25 per cent ownership in the license.In April, a discovery of oil and gas was made at the Tyrihans field in the Norwegiansea. The discovery contains between 19-26 mmboe of recoverable
the ExxonMobil acquisition, Vår Energi became the largest independent producer on the NCS. Point Resources established. 2015 Acquisition of ExxonMobil's operated NCS portfolio. 2017 Vår Energi established. 2018 Acquisition of ExxonMobil's non-operated NCS portfolio. 2019 Who we are 10 Annual Report 2020
