Equinor, Aker BP, and Vår Energi announced they are forming a partnership to explore what are believed to be some of the largest remaining opportunities on the Norwegian Continental Shelf (NCS). The companies said the collaborative effort will increase the likelihood of major discoveries that could support standalone field developments and create long-term value.
“By combining our expertise and exploration portfolios, we can high-grade the best opportunities, move faster, and do more. This allows us to focus our efforts where the potential is greatest and will increase our chances of finding the fields of the future. Near-field exploration remains crucial, but we also need to pursue the bigger opportunities to sustain activity and value creation beyond 2035,” Kjetil Hove, executive vice president for exploration and production for Equinor, said in a statement.
Nick Walker, CEO of Vår Energi, described the NCS as an attractive exploration region and called the new partnership “transformative.”
“It has the potential to unlock access to material new discoveries that can support long-term production, create value for our stakeholders and contribute to maintaining Norway's position as a secure and responsible supplier of energy to Europe,” added Walker.
Under the partnership, the three companies will combine their expertise, data, technology, and exploration capacity to target a portfolio of "high-impact" prospects. The effort will be rolled out over the next 4 to 5 years and could include 20 to 25 exploration targets, with about five wells drilled annually.
The companies noted that most recent discoveries have been made near existing fields where oil and gas infrastructure is already in place. These discoveries, typically developed through subsea tiebacks, play an important role in maximizing the use of existing facilities. However, the companies said new, more remote discoveries are also needed to extend their portfolios and support future field developments.
Such frontier opportunities carry greater geological uncertainty, technical complexity, and capital requirements. The companies said these challenges have historically made it difficult to establish this type of collaboration. By sharing risk and combining capabilities, however, they believe they can evaluate and test more prospects than any one company could pursue independently.
New discoveries are also expected to play a key role in sustaining Norway's oil and gas sector. The companies said production from the NCS is projected to decline after 2035 unless new developments are brought forward.
“The NCS still holds substantial undiscovered resources. By bringing together three strong exploration organizations, we can pursue more of the most promising opportunities and increase the chances of significant new discoveries,” Karl Johnny Hersvik, CEO of Aker BP, said in the announcement.