100 million barrels pumped from Varg oil field
Barrel numbering 100 000 000 has been shipped from the Varg field. Production on the field has thus exceeded the most optimistic production forecasts by more than 50 percent.
Production on the Varg field started in December 1998. In the original plan for development and operation, recoverable resources were estimated at approximately 63 million barrels.
The important Varg field
Varg has a special place in Det norske oljeselskap’s history. It was perhaps the main reason why the company was established.
After three years of production, operator Hydro planned to shut down the field in 2002. A shutdown would entail that the production ship (FPSO) Petrojarl Varg, owned by PGS Production, would have no field assignment. When the Norwegian government in 2001 opened up for new companies on the Norwegian Continental Shelf, Erik Haugane and Kaare Gisvold in PGS Production saw the opportunity for starting an oil company, take over the Varg field and continue operations.
PGS Petroleum (later Pertra) paid NOK 6 (today equivalent to less than USD 1) for 70 percent of Varg. Production continued, marking the beginning of a success story. In 2005, Pertra was sold to Talisman Energy for over one billion US dollars. Pertra (later Det norske) retained a five percent interest in the producing field. Like Pertra, Talisman was willing to invest in the field. New wells were drilled and use of new technology resulted in good production and good profitability.
The plan for decommissioning of Varg was approved by the King in 2001, but new discoveries, drilling of new wells and gas production has made the field viable until today. Production is currently stable and is expected to last for several more years.
Source: Det norske oljeselskap