Reserve based lending facility – change in the Mandated Lead Arranger group

BNP Paribas, a lender in Pandion Energy`s reserve based lending (“RBL”) facility announced in 2023 an energy transition strategy which included an exit path from oil production financing. BNP Paribas has now transferred their shares in Pandion Energy`s RBL facility to Deutsche Bank, an incumbent lender, while also bringing aboard a new lender, SpareBank 1 SR-Bank.

Successful appraisal well and new gas discovery in the Gjøa area

The Ofelia appraisal well, 35/6-4 S, in the Agat formation has been completed. The estimated recoverable volume is in the range of 16-33 million barrels of oil equivalent (mmboe).

In addition to the appraisal well for Ofelia, a side-track was drilled into the overlying Kyrre formation, resulting in a new gas discovery. Estimated recoverable resources are between 11-19 mmboe of gas, bringing the total recoverable volume from both discoveries to approximately 27-52 mmboe.

CEO of Pandion Energy, Jan Christian Ellefsen, said:

“Located in a core area for Pandion Energy, the size and quality of the Ofelia and Kyrre discoveries are highly encouraging. Given the proximity to Gjøa and the operator’s development track record, we are confident this will turn into another fast track, cost-effective and low carbon development.”

Ofelia and Kyrre are located 23 kilometres north of the Neptune-operated Gjøa platform and will be considered for development as tie-backs to Gjøa. The Gjøa platform is electrified with power from shore and produces at less than half the average carbon intensity of Norwegian Continental Shelf fields.1

Bente Flakstad Vold, VP Exploration & Appraisal in Pandion Energy, added:

The successful Ofelia appraisal and the new gas discovery are the result of a focused exploration effort in the Greater Gjøa Area since we took part in the discovery of Duva in 2016.

We now look forward to applying the learnings from this well on our extensive exploration portfolio in the surrounding area. The appraisal well proved very good reservoir properties in an additional fairway in the Agat Formation, boosting our expectations of the Agat reservoir in the Horatio wildcat well to be drilled in PL 1109.


Partners: Neptune Energy (operator, 40%), Wintershall Dea (20%), Pandion Energy (20%), Aker BP (10%), and DNO (10%)

For further information see press release from the operator Neptune Energy (Neptune Energy announces Kyrre discovery & confirmed Ofelia volumes in Gjøa area | Neptune Energy).


Notes to editors:

1) CO2 emissions from Gjøa are estimated at 3kg of CO2 per boe (EnvironmentHub (EEH); CO2 emissions and Diskos; Gross production incl. tie-ins, 2020), average on the Norwegian Continental Shelf is 8 kg CO2/barrel (NOROG Miljørapport 2020).

Green light for Valhall PWP- Fenris

The fields that are located 50 kilometres apart and are operated by Aker BP ASA. Pandion Energy AS is partner in Valhall and PGNiG Upstream Norway AS is a partner in Fenris. The joint development comprises a new centrally located production and wellhead platform (PWP) bridge-linked to the Valhall central complex, and an unmanned installation (UI) on Fenris that will be subsea tied back to the PWP. The project will extend Valhall’s lifespan and unlock substantial reserves.

Extending the lifetime of Valhall with low emission reserves

New reserves resulting from the joint development project are estimated at 230 million barrels of oil equivalents. The project also ensures a lifetime extension for Valhall beyond 2028 and continued production from the existing Valhall reserves, estimated at 137 million barrels. The development will utilise the existing power from shore infrastructure, with minimal emissions, estimated at less than 1 kg CO2 per barrel.

See also press release from Aker BP: (Norwegian only)

Publication of the combined annual report for 2022

Jan Christian Ellefsen, CEO of Pandion Energy, stated the following:

In 2022, our company experienced its strongest year of growth to date. We made several significant achievements, including the acquisition and integration of ONE-Dyas Norge AS, first oil at Hod B and Nova, and the successful drilling of two wildcat wells, both proving hydrocarbon accumulations with commercial potential. In addition, we partnered in our fourth PDO, namely the Valhall PWP development project.

“Our highly motivated team has made tremendous efforts this year, both through integrating new assets and continuing to create value in our ongoing business. This has resulted in our best year ever with a turnover of more than USD 200 million.

Looking ahead, Pandion Energy will focus on enhancing its portfolio of high-quality assets while continue to look for attractive growth opportunities. Operationally, we expect 2023 to be another exciting year for the company, with an expected increase in production at Nova and an appraisal well at Ofelia discovery planned drilled this summer.”

Total revenues and other income for 2022 increased 55 per cent to USD 213.1 million (2021: USD 137.9 million). The increase in revenues is mainly driven by the increase in realised oil and gas prices.

Average net production for Pandion Energy was 5,236 barrels of oil equivalent per day (boepd), a slight increase from the average of 5,152 boepd in 2021. Upon reaching its full production potential, Nova is expected to more than double the company’s daily production level.

With a strong balance sheet, Pandion Energy is well-positioned for future consolidation activities on the Norwegian continental shelf. The company remains committed to its strategy of being an active, responsible partner and a full-cycle oil and gas company with long-term ambitions.

Pandion Energy Combined Annual Report 2022

Pandion Energy awarded two APA licenses

The APA award was announced by the Ministry of Petroleum and Energy on Tuesday 10 January. For more information about the APA 2022 Licensing Round see Ministry of Petroleum and Energy’s website.

Pandion Energy has been awarded the following licenses:

  • License PL 1180 in blocks 35/9,12 and 36/7,10 is located in the Greater Gjøa area in the North Sea. Pandion Energy has been offered a 30 percent participating interest in PL 1180.
  • License PL 1149 B is additional acreage to PL 1149 located west of the Nova field in the North Sea. Pandion Energy holds a 30 percent interest in the license.
Greater Gjøa Area with Pandion Energy licences and APA 2022 awards to Pandion Energy.
Greater Gjøa Area with Pandion Energy licences and APA 2022 awards to Pandion Energy.

CEO of Pandion Energy, Jan Cristian Ellefsen stated the following:

We are pleased that we have been awarded the areas we applied for in the APA 2022 licensing round. The licences are located in one of our core areas and fit well with our existing portfolio including the Nova field which was put on stream during 2022 and the recent Ofelia discovery in production license 929. This year’s APA awards is in line with our strategy of being an active, full-cycle partner driving value in high-quality assets on the NCS.

Pandion Energy partner in its fourth PDO on the NCS

The joint development project, located in the southern part of the North Sea, comprises a new centrally located production and wellhead platform (PWP) bridge-linked to the Valhall central complex with 24 well slots, and an unmanned installation (UI) with 8 slots at Fenris (formerly King Lear) subsea tied back 50 kilometres to the PWP.

CEO of Pandion Energy, Jan Cristian Ellefsen stated the following:

“Since taking a 10 percent ownership in the Valhall and Hod fields in December 2017, we have been an active partner cooperating closely with the operator in the further development of the Valhall area. We are very pleased to be a part of today’s PDO submittal, which is our third with Aker BP in the Valhall area and the fourth overall for Pandion Energy as a company. Being fully electrified from shore since 2013, the Valhall area also fits well with our Net Zero Carbon Strategy. We look forward to contributing further to optimizing the Valhall infrastructure and, through this, capture more of the remaining resource potential in the area.”

Increased production with minimal emissions

The total new reserves developed by the joint development project are estimated to 230 million barrels oil equivalent (mmboe) gross. A total of 19 wells are planned to be drilled, of which 15 at Valhall PWP, recovering 70 mmboe with first oil in second quarter 2027. The project will also involve a modernisation of Valhall that ensures continued operation when parts of the current infrastructure are to be phased out in 2028, thus enabling production of the remaining Valhall reserves from 2029 onwards, which are estimated at 135-140 mmboe gross.

The development will leverage Valhall’s existing power from shore system with minimal emissions, estimated at less than 1 kg CO2/boe.

The joint development project implies significant synergies in the development and operational phases for the Valhall and Fenris license partners. Total investments in the Valhall PWP – Fenris development are estimated at NOK 50 billion in real terms.

The Valhall asset and field is currently undergoing a major modernization and the new PWP installation will become an integrated part of the Valhall field taking over key global functions as other facilities are phased out.

See also full press release from Aker BP:

About Production licenses and partners:

  • Partners in Valhall Unit (PL 006B and 033B): Aker BP (90%, operator), Pandion Energy (10%)
  • Fenris (formerly King Lear, PL146, 146B 333 and 1088): Aker BP (77.8%, operator), PGNiG (22.2%)

About Installations:

  • Valhall PWP: A production and wellhead platform (PWP), bridge-linked to the Valhall central complex
  • Fenris: An unmanned installation (UI), subsea tied back 50km to Valhall PWP

New discovery north-west of Draugen in the Norwegian Sea

Preliminary volume estimates are between 1 and 3.5 million standard cubic meters (MSm3) of recoverable oil equivalents, corresponding to 6-22 million barrels of oil equivalent (boe).

VP Exploration & Appraisal, Bente Flakstad Vold stated the following:

This is our fifth consecutive discovery in mature areas on the Norwegian continental shelf. Pandion Energy actively targets near field exploration opportunities which allow for low cost and low carbon developments. The partners in the Calypso license will now study options to effectively develop the discovery using nearby infrastructure.

“We would like to congratulate both the operator Neptune Energy and the Deepsea Yantai team on yet another successful drilling operation.”

Pandion Energy is also partner in the Neptune Energy operated Ofelia discovery in the North Sea announced in August (link).

The Calypso discovery is located 14 kilometres north-west of the Draugen field and 22 kilometres north-east of the Njord A platform.

Well 6407/8-8S was drilled to a vertical depth of 3496 metres and encountered an estimated 8 metre thick gas column and 30-metre thick oil column in a 131 metres thick Garn Formation sandstone reservoir, of good to very good quality.

The well was drilled by the Deepsea Yantai, a semi-submersible rig owned by CIMC and operated by Odfjell Drilling. The partners in the license are: Neptune Energy (operator, 30%), OKEA ASA (30%), Pandion Energy AS (20%) and Vår Energi ASA (20%)

Merger with wholly owned subsidiary completed

Reference is made to announcement on 9 March 2022 regarding Pandion Energy AS acquiring the shares of ONE-Dyas Norge AS from ONE-Dyas Holding B.V., and the completion of the transaction announced on 30 June 2022 where ONE-Dyas Norge AS became a wholly owned subsidiary of Pandion Energy AS.

The transfer was approved by the Ministry of Petroleum and Energy (“MPE”) on the condition that the two companies shall be merged. ONE-Dyas Norge AS’ name was later changed to Pandion Energy Norge AS. The merger between Pandion Energy AS and Pandion Energy Norge AS was approved by the MPE 14 October 2022 and was completed on 1 November 2022 with Pandion Energy AS as the surviving entity.