Vår Energi will publish its financial report for the fourth quarter and full year 2022 on Thursday 16 February. Today, the Company provides an update on production and sales volumes and other relevant items.

Vår Energi’s net production of oil, liquids and natural gas averaged 214 kboepd in the fourth quarter of 2022, stable compared to 214 kboepd in the third quarter of 2022 and a decrease of 18% compared to the fourth quarter of 2021¹. Production for the full year 2022 was within the revised guided range at 220.1 kboepd (down from 242 kboepd in 2021¹).

Production in the fourth quarter was negatively impacted by the fire at Åsgard B in November. This was balanced by positive contribution from all the other hub areas compared to the previous quarter.

The production split in the fourth quarter was stable from previous quarter with 63% oil and NGLs (liquids) and 37% gas. During the quarter, the Company continued to reduce NGL recovery to increase gas volumes and sales to capture the current favourable gas prices, representing approximately a reduction of 2 kboepd on an annual basis. Total volumes produced in the fourth quarter were 19.7 mmboe whereas volumes sold in the quarter amounted to 20.5 mmboe.

The Company obtained an average realised price (volume-weighted) of USD 115 per boe in the quarter in a continued strong commodity price environment. Realised gas price of USD 182 per boe is a result of flexible gas sales agreements, allowing for optimisation of indices and various exit points in Europe. Vår Energi had fixed price contracts for approximately 30% of fourth quarter gas volumes at an average price of USD 150 per boe.

KeyFacts Energy: Vår Energi Norway country profile