Var Energi Plans 20 New Projects to Squeeze More Oil From Norway
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Norwegian oil company Var Energi ASA plans to green-light a swath of new projects to maintain output from an aging basin into the next decade.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Norwegian oil company Var Energi ASA plans to green-light a swath of new projects to maintain output from an aging basin into the next decade.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Chief Executive Officer Nick Walker said he wants to give the go-ahead to 20 projects “over the next few years,” targeting output of 350,000 to 400,000 barrels of oil equivalent a day through 2030 and beyond.Norway, which provides about 15% of Europe’s crude, sees itself as a strategic supplier as the region pivots from Russia. Producers are spending billions to squeeze more oil from the country’s continental shelf, where output peaked in the early 2000s. They’re increasingly targeting barrels that can quickly be tied into existing infrastructure to slow the rate of decline. “What we’re going to be able to show is that we can sustain higher production for longer,” Walker said on a conference call. The oil and gas company, Norway’s third-biggest, has earmarked about $15 billion over the next five to six years to do so.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.The 20 new projects would come on top of 10 it has sanctioned this year. Future developments are “all tiebacks into existing infrastructure,” which helps drive down operating expenses and capital spending, Walker said.Keeping costs in check is key, since oil prices have slumped 20% this year to around $60 a barrel. There’s little hope of a revival next year, with global supply forecast to exceed demand by a record margin.
Yet Var Energi and others are betting that, with the energy transition bumpy and climate commitments faltering in multiple countries, crude oil will be needed for decades to come.“We are clearly in a lower price environment and a lower price cycle,” and “that’s likely to extend for at least a part of next year,” Walker said. Falling prices will slow capital spending in some parts of the world, particularly in North America, but “$60 is not sustainable long-term, and I think we will see prices coming up.”Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2025 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.