Equinor and Vår Energi have agreed to exchange assets on the Norwegian Continental Shelf (NCS) in a deal intended to advance the Peon gas discovery towards development and strengthen Equinor’s position in the Troll-Fram area.
Under the agreement, Equinor will transfer 32.5% of its holding in the Peon discovery and operatorship to Vår Energi.
In return, Equinor will receive interests in producing assets and development licences, including a 5% share in the Fram field and Vår Energi’s stakes in the Grosbeak and Mulder discoveries and the Grønngylt prospect, which are part of the Ringvei Vest development.
The companies have also agreed on a development concept for Peon based on a tie-back solution to the Gjøa hub approximately 60km away.
This plan is expected to extend the operational life of Gjøa and support continued gas production in the region. Gas output from Peon is set to be processed through Kårstø, contributing further value for Equinor.
The Peon discovery holds estimated recoverable resources of 105–195 million barrels of oil equivalent, making it one of the largest undeveloped gas discoveries on the NCS.
Equinor Norway exploration and production executive vice-president Kjetil Hove said: “This transaction enables us to speed up progress of one of the largest undeveloped gas discoveries on the NCS, Peon, while strengthening our position in the Troll-Fram area.
“The swap supports efficient development of resources and increased use of existing infrastructure. This is the latest in a series of transactions on the NCS where we have aligned interests across partnerships to enable faster tie-back developments.”
The asset swap is the latest in several portfolio optimisation transactions carried out by Equinor on the NCS.
These include swapping assets with Aker BP and DNO in areas such as Ringvei Vest, Yggdrasil and Haltenbanken to improve alignment and support coordinated development across the licences.
Finalisation of the agreement, including the transfer of operatorship, is subject to standard regulatory approvals. Equinor will continue as the operator of Peon until the transaction is completed.
Earlier this month, Equinor and its partners agreed to invest just over Nkr4bn ($412m) in a new subsea development, known as the Troll West Increased gas recovery North project, to increase gas production from the Troll field in the Norwegian North Sea.
