Vår Energi has submitted an amended Plan for Development and Operation (PDO) for the Goliat Gas Export (GGE) project to the Ministry of Petroleum and Energy, together with its partner Equinor.
The project is expected to increase oil production from the Goliat field in the Barents Sea through optimised reservoir management following the production of the gas reserves, currently being re-injected into the reservoir. The incremental oil will be sold from the start, while the gas will be exported to the Hammerfest LNG plant under a gas bank arrangement, agreed with Snøhvit, and sold when processing capacity is available.
The project is developing proved plus probable (2P) reserves of 112 million barrels of oil equivalent (mmboe) gross (73 mmboe net Vår Energi), of which approximately 15% is oil. The project is expected to come onstream in the third quarter of 2029.
Vår Energi’s COO Torger Rød said: 'This is an effective, value creating project with significant upside. The project expands the infrastructure in the Barents Sea and unlocks future developments.?Importantly, it extends the operational life of the Goliat field by approximately ten years, to around 2050, thereby strengthening the long-term security of energy supply to Europe.'
The project comprises new subsea infrastructure connecting the Goliat FPSO to the Snøhvit pipeline, including a gas riser, umbilical, and a 12 km gas export pipeline. Modifications to the Goliat FPSO enable the new infrastructure to be connected to existing facilities on the FPSO.
The GGE project also facilitates efficient gas solutions for future projects to be connected to the Goliat FPSO, with the first being the Goliat Ridge development. Total investments for the GGE project amounts to around USD 360 million gross pre-tax (USD 233 million net Vår Energi pre-tax). The project has robust economics with a breakeven in line with the Company’s target and provides significant upside potential from optimisation of Goliat operations.
Goliat is fully electrified with power from shore and the GGE project represents no additional CO2 emissions.
Partners in the Goliat licence (PL229) are: Vår Energi (operator and 65%) and Equinor (35%).
Source: Vår Energi
