Vår Energi will publish its financial report for the second quarter 2025 on Tuesday 22 July. Today, the Company provides an update on production, sales volumes and other relevant items.
Vår Energi’s net production of oil, liquids and natural gas averaged 288 kboepd in the second quarter 2025, an increase of 6% from the previous quarter. Production in the first half of the year averaged 280 kboepd, and was around the bottom of the expected range, mainly due to the later start-up and slower ramp-up to plateau at Johan Castberg than initially planned. With the main new project start-up’s achieved the Company is on track to deliver full year 2025 production in the middle of the guided range of 330 to 360 kboepd. Fourth quarter 2025 production is expected to be around 430 kboepd.
The production split in the second quarter was 68% oil and NGLs (liquids) and 32% gas. Total volumes produced were 26.2 mmboe, whereas volumes sold in the quarter amounted to 26.0 mmboe. Vår Energi obtained a strong average realised price (volume-weighted) of USD 70 per boe in the quarter. The realised crude price was USD 68 per barrel. The realised gas price of USD 79 per boe is a result of fixed price contracts and flexible gas sales agreements, allowing for optimisation of indices. The fixed price contracts represented 25% of second quarter gas volumes sold at an average price of USD 92 per boe, substantially above the spot market reference price. For third quarter fixed price gas contracts represent 18% of volumes at USD 90 per boe.
| Production (kboepd)1 | Q2 2025 | Q1 2025 | Q2 2024 | 1H 2025 | 1H 2024 | |
| Crude oil | 180 | 160 | 162 | 170 | 166 | |
| Gas | 92 | 96 | 103 | 94 | 107 | |
| NGL | 16 | 16 | 22 | 16 | 20 | |
| Total | 288 | 272 | 287 | 280 | 293 | |
| Realised prices (USD/boe) | ||||||
| Crude oil price | 68 | 76 | 85 | 72 | 85 | |
| Gas price | 79 | 87 | 70 | 83 | 68 | |
| NGL price | 43 | 54 | 44 | 47 | 47 | |
| Average (volume weighted) | 70 | 79 | 77 | 74 | 76 | |
| Sales volumes (mmboe) | ||||||
| Crude oil | 17.1 | 15.0 | 15.1 | 32.1 | 29.6 | |
| Gas | 7.7 | 8.0 | 7.9 | 15.8 | 17.1 | |
| NGL | 1.2 | 0.7 | 2.1 | 1.9 | 4.3 | |
| Total | 26.0 | 23.8 | 25.1 | 49.8 | 51.0 | |
| Total production (mmboe) | 26.2 | 24.5 | 26.1 | 50.7 | 53.3 | |
¹ Produced figures are including fuel gas not for sale
Other items
Vår Energi’s functional currency is NOK, whilst interest bearing loans are in USD and EUR. In the second quarter of 2025 the Company incurred a net exchange rate gain of USD 80 million.
As a result of the company history of mergers and acquisitions, Vår Energi has several assets booked at fair value in the balance sheet. Changes in assumptions, cost and production profiles can result in impairments and reversals.
Non-cash impairment reversals in the second quarter are estimated to be around USD 510 million pre-tax (around USD 112 million post tax) related to a reversal on the Balder field triggered by changes in reserves. In addition, there are impairments of technical goodwill on the Njord, Gjøa and Snøhvit areas of around USD 70 million (around USD 70 million post tax).
As previously communicated, the following items impacted the free cash flow in the second quarter: cash tax payments totaling NOK 5.2 billion (USD 504 million) and a dividend payment for the first quarter of USD 300 million, paid in May.
The information above is based on a preliminary assessment of the Company's second quarter 2025 financial results and may be subject to change until the financial statements have been finally approved and published by the Company.
Source: Vår Energi
