With the end of Q3 upon us and the start of a new year fast approaching, energy companies are salivating at the prospects for 2026. The global upstream sector has faced some headwinds in 2025. Market instability, increases in operational and compliance costs, and the ongoing war in Ukraine have left the sector facing a less-than-ideal performance this year. However, the new year brings a renewed sense of optimism for energy companies as they look forward to new and exciting projects.
Norwegian heavyweight preparing to approve several new upstream developments
The aforementioned optimism has been evident in Europe, with a Norwegian energy company preparing for a great 2026. Vaar Energi has sanctioned several new oil and gas projects slated for approval this year, with more planned by the end of the year, which we don’t have to tell you is only a few short weeks away.
Vaar has already approved four new projects this year, with plans to add another six by the end of the year. The company has stated that it is currently focused on the Goliat area in the Barents Sea. Vaar noted that the 10 projects have an average breakeven of less than $35 per barrel of oil equivalent, and are mostly focused on oil, as opposed to gas exploration.
Vaar stated in an earnings call with investors that the four projects that have entered the execution phase are:
- Fram Sor
- Balder phase VI
- Gudrun’s low-pressure production
- Snorre gas export
The Norwegian energy independent has noted that the six new projects set to be given Final Investment Decisions are:
- Johan Castberg Isflak
- Johan Castberg improved oil recovery
- Mikkel flow conditioning
- Balder Next
- Eldfisk North Extension
- Ekofisk previously producing fields
Vaar Energi’s plans for the new year include several smaller projects
The company has noted that the Ekofisk previously producing fields project holds special interest, as Vaar recently bought TotalEnergies’ stake in the project through a $147 million acquisition. Chief Executive Nick Walker noted in an earnings call that the 10 projects form part of a broader suite of 30 identified developments backed by already-discovered resources.
Vaar’s lofty ambition is to sustain production at between 350,000 boe per day and 400,000 boepd towards the end of the decade and further afield. The company’s vast exploration program has identified five small to medium-sized commercial discoveries from 15 wells drilled in 2025.
“In terms of our exploration success, we’d always like more. But I think so far it’s a good outcome this year. And we’ve got some exciting wells to come, particularly the wells we’re drilling in the Goliat Ridge.” – Vaar Energi’s Chief Executive Nick Walker
The Goliat Ridge holds much promise for the company, and Vaar has stated that the ridge hosts a resource of more than 200 million boe of gross discovered and prospective recoverable resources. With energy companies around the world entering Final Investment Decisions for new and astonishing projects, Vaar Energi has identified a path forward that could set the company up to have a great start to 2026.
The upstream sector is growing well beyond expectations of the industry
Vaar’s impressive portfolio of projects this year is being backed up with plans to launch new ones in 2026. Crucially, Vaar has said that the company has one large high-impact exploration well in the Barents Sea that could be operational late this year or in early 2026. Upstream production across the world has been surging in recent months, as evidenced by the recent news that Egypt has opened a licensing round for the Red Sea, potentially unlocking a treasure trove of new possibilities. Vaar Energi’s plan for the sector is representative of the standing of the upstream market at the moment, and things are looking promising.
