Norwegian oil and gas companies Vår Energi and Equinor are inching closer to exporting gas from the Goliat field in the Barents Sea.

The companies have given their approval to the concept selection (DG2) for the export of gas from Goliat to the Snøhvit pipeline, which will transport the gas to the Hammerfest liquified natural gas (LNG) plant.

A final investment decision (FID) for the project is expected in the second half of 2024.  

As the operator, Vår Energi owns a 65% stake in the Goliat field and the remaining 35% is held by Equinor.

Since start-up in 2016, Goliat, which is located approximately 80km north-west of Hammerfest, has produced oil and the gas has been reinjected into the reservoir.

According to Vår Energi, a solution for gas extraction from the reservoir is required to guarantee sustainable oil production in the future.

The Goliat gas project is another significant step towards identifying a more comprehensive plan for boosting the Barents Sea's gas export capacity, Vår Energi added.

Vår Energi COO Torger Rød said: “The Barents Sea is one of the key hub areas and value creators for Vår Energi. The region represents a major part of our future growth strategy. We are operator for Goliat and have ownership in more than half of all the active licences, a 30% share in Johan Castberg and a 12% share in Snøhvit to be included in the portfolio following the integration of Neptune Energy Norge.

“The Goliat gas export project is an important step to fulfil the Goliat PDO requirements set by the Parliament. It will contribute to making Goliat more attractive as a regional oil and gas hub for both Vår Energi and our partner operated licences and to contribute to long-term local ripple effects, and secure employment and activity.”

Earlier this month, Vår Energi agreed to sell its 12.25% stake in the Brage field on the Norwegian Continental Shelf.