The Cosl Prospector, a drilling rig operated by the Chinese state-owned enterprise COSL, has made headlines with its recent discovery of oil reserves off the coast of Norway. Situated within the Norwegian Arctic waters of the Barents Sea, the discovery is estimated to yield between 1.6 to 8.3 million standard cubic meters of oil equivalents, roughly translating to 10 to 52 million barrels, as reported by the Norwegian Offshore Directorate.
This significant find lies near the Goliat oil field, which is primarily operated by Vår Energi, showcasing the exploration potential of the Goliat ridge. Excitingly, Vår Energi has reported plans to assess additional gross prospective recoverable resources of over 100 million barrels of oil equivalents (mmboe) with upcoming drilling initiatives set for 2025. According to Vår Energi, three more wells are scheduled for drilling next year named Zagato North, Zagato South, and Goliat North.
Torger Rød, the Chief Operating Officer of Vår Energi, stated, "We are committed to develop the Barents Sea as a strategically important petroleum province.” This commitment reflects the broader strategy of enhancing Norway’s oil industry capabilities, particularly as the country seeks to secure its position as one of Europe’s leading petroleum producers.
Notably, the Cosl Prospector is managed by COSL Drilling Europe, the European branch of China Oilfield Services, which was constructed at a Chinese yard and has been operational since 2014. Operating under the flag of Singapore, the rig embodies the intersection of Chinese technology and Norwegian exploration endeavors, raising discussions about foreign involvement in Norway's energy sector.
Interestingly, the partnership with COSL has not come without its detractors. Norwegian security and intelligence authorities have previously issued warnings about potential threats posed by Chinese enterprises involved in domestic industries, prompting scrutiny and debate about the extent of foreign influence. Yet, Vår Energi has continued to defend its partnership, emphasizing the importance of securing reliable and safe drilling equipment.
Jan Eirik Heigre Gjerdevik, Communication Adviser at Vår Energi, noted, "The most important for us is to contract secure and reliable rigs for our drilling campaigns.” He added, "We conducted a careful evaluation...including a duel diligence assessment" before entering the contract with COSL. This thorough evaluation aims to address the concerns raised around security and operational protocols, assuring stakeholders of Vår Energi’s commitment to adhering to Norwegian and international laws and regulations.
The oil reserves discovered by Cosl Prospector are poised to play a key role not just for Vår Energi, but for Norway's broader energy strategies amid shifting geopolitical landscapes. The Norwegian Continental Shelf has historically been a treasure trove for oil, and discoveries like this reaffirm its significance.
With plans for future drilling targeting the Goliat ridge and other neighboring areas, the stakes are high for Vår Energi and its partners. The potential for economic gain is enormous, but the situation is delicately balanced against the backdrop of international relations and local sentiments around foreign investments.
Vår Energi, which emerged from the 2018 merger of ENI and Point Resources, currently holds 65 percent of the oil license area, with Equinor, another major player in the industry, owning the remaining 35 percent. The cooperation between these companies is indicative of the reliance on collective investment and expertise necessary for the demanding Arctic environment.
Despite the challenges posed by external security concerns, Vår Energi appears resolved to push forward. Their strategic focus on the Barents Sea, complemented by the recent discovery, signals ambition to fortify both their resource base and operational capacity.
Looking ahead, the exploration efforts scheduled for 2025 hold promise not only for the companies involved but also for Norway’s energy portfolio as it seeks to innovate and sustain its significance as one of Europe’s energy suppliers. The Barents Sea continues to represent uncharted territories of substantial significance for hydrocarbon resources, and developments such as these will undoubtedly attract continual attention from both industry insiders and geopolitical observers.
