Norwegian oil and gas company Var Energi has finalised the sale of its 20% interest in the North Sea's Boyla field to Concedo for an after-tax consideration of Nkr262.81m ($24m).

The company reached this agreement in May 2024.

The transaction aligns with Var Energi's strategy to optimise its portfolio by divesting non-core assets, paving the way for growth and value creation in the company’s primary areas of operation.

Operated by Aker BP with an 80% stake, the Boyla field began production in 2015. It features a subsea template connected to the Alvheim floating production storage and offloading unit.

Var Energi's production from Boyla amounted to approximately 1,300 barrels of oil equivalent per day in the first nine months of 2024.

Concedo will take on all decommissioning liabilities for the Boyla field interests.

As of the end of last year, the field's net remaining proved plus probable (2P) reserves stood at 1.6 million barrels of oil equivalent (mboe).

In a separate development, Var Energi and Kistos recently announced a $690m investment in the Balder Phase V project in Norway.

The drilling phase is slated to start in the first half of 2025 and is expected to conclude in 2026, targeting 33mboe in gross 2P reserves and a breakeven price of approximately $30 per barrel.

Additionally, Var Energi extended its natural gas supply agreement with Italy's Eni in July until 2036.

Under this agreement, Var Energi will supply up to five billion cubic metres of natural gas to Eni between 2024 and 2036.

The gas will be delivered to terminals in Emden and Dornum, Germany, and pricing will reflect market conditions.