Vaar Energi, a leading operator in Norway, announced significant growth in oil and gas production and reserves for 2024, driven by its acquisition of Neptune Energy and successful exploration efforts. However, the company noted a decline in its average realized gas price.
Key Production Highlights for 2024
- Total production: Averaged 280,000 barrels of oil equivalent per day (boepd), up from 213,000 boepd in 2023.
- Oil production: Averaged 161,000 barrels per day (bpd), compared to 124,000 bpd in 2023.
- Gas production: Averaged 100,000 boepd, marking a 35% increase over 2023.
The 2024 production figures were within the company’s guidance range and reflect the successful integration of assets acquired from Neptune Energy and operational improvements.
Impact of Increased Reserves
The increase in reserves underpins Vår Energi’s pipeline of new projects in Norway. These reserves will allow the company to maintain robust production levels while pursuing new development opportunities in the Norwegian Continental Shelf (NCS).
Gas Price Challenges
Despite the production growth, Vår Energi faced a notable drop in realized gas prices in 2024. The company has not yet provided detailed price comparisons or specific reasons for the decrease, but broader market trends, including fluctuating European gas demand and price volatility, may have contributed.
Looking Ahead
Vaar Energi’s production growth and reserve replacement position it as a key player in Norway’s energy sector, with plans to continue capitalizing on its exploration successes and newly acquired assets. The company is expected to provide updates on its ongoing development projects in upcoming quarterly reports.
