Norwegian oil and gas company Vår Energi has announced a 12-year extension to its natural gas sales agreement with Italy’s Eni.
The renewed deal will see Vår Energi deliver up to a total of 5bcm of natural gas to Eni from 2024 to 2036.
The gas will be supplied to terminals in Emden and Dornum, Germany, with pricing set according to market terms.
This extension comes shortly after a similar agreement signed last month with VNG Handel & Vertrieb, a subsidiary of VNG.
Under that deal, Vår Energi will also supply up to 5bcm of gas to Germany over the same period.
Vår Energi CEO Nick Walker said: “We are very pleased with having secured an extension of a second long-term gas sales agreement with a major European energy company. The agreement with Eni, being confirmed shortly after a similar signing with VNG, is yet another strong testimony of Vår Energi’s commitment to being a stable and reliable energy supplier to key European markets.
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By GlobalData“The deal entails doubling our committed delivery of natural gas to a total of 10bcm over the 12-year period to two of our long-standing partners. This will ensure access to energy for households, communities and businesses across the continent until the mid 2030s.”
The announcement follows Vår Energi’s success in the North Sea, where it made a commercial oil and gas discovery in the Gjøa area, offshore Norway.
The Cerisa exploration well in production license PL 636, operated by Vår Energi, was deemed successful with estimated gross recoverable resources of 18–39 million barrels of oil equivalent (mboe).
This discovery marked the fourth in a series near the partly electrified Vår Energi-operated Gjøa platform.
Alongside previous finds at Gjøa North and Ofelia/Kyrre, Cerisa is considered a potential candidate for integration into the Gjøa field, utilising the existing infrastructure in the area.
These combined discoveries could contribute gross recoverable resources of up to 110mboe.
