Var Energi Targets Tighter Supplier Cooperation

Norwegian oil and gas company Var Energi has set its sights on enhancing supplier cooperation through a new contract on fabrication and installation of subsea equipment. The company is not only eyeing increased efficiency through the collaboration model but also environmental benefits.

An ongoing tender floated by Var Energi on fabrication and installation of subsea equipment for its entire operated portfolio enables the suppliers to deliver joint solutions through three-party cooperation.

This is in contrast to the traditional approach of subcontracting partners for each separate stage of the project. Var Energi aims to announce the new contract for the fabrication and installation of subsea equipment during the first quarter of 2022.

“We believe strategic cooperation between suppliers will lead to improved and more efficient end-solutions. Early involvement in projects secures more efficient planning and implementation. We also believe that the model will provide added value for all parties, as well as contribute to sustainable development,” says Annethe Gjerde, VP of Procurement & Contracts in Vår Energi.

The ambition of facilitating more sustainable and efficient oil and gas production has prompted the company to push for tighter cooperation with suppliers throughout the entire value chain.

“We are continuously seeking ways to work smarter. We see that a broader, long-term and more open collaboration between suppliers and operators reduces costs and increases efficiencies,” says Torger Rød, CEO of Vår Energi.

Over the coming years, the company plans to step up its activity on the Norwegian continental shelf (NCS). Projects such as the life extension of the Balder field, and new discoveries in the North Sea and the Barents Sea will create a plethora of new opportunities for the suppliers.

The streamlining of the cooperation with suppliers, which also has the aim to reduce environmental impact is in line with Var Energi’s ambition to be a net-zero producer (Scope 1 and 2) by 2030.

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