Investing.com -- Norway's Vår Energi (OL:VAR) cut its full-year 2026 production forecast to about 390,000 barrels of oil equivalent per day on Monday, from a previous range of 390,000-410,000, citing operational problems at two of its fields.
Vår Energi said the problems were operational issues at Johan Castberg and the Jotun FPSO in July, plus production irregularities in the Åsgard area.
Johan Castberg and Jotun have produced at expected levels since early August, and none of the main production impacts are related to the reservoirs, it said.
Third-quarter production averaged 369,000 barrels of oil equivalent per day, down 2% from the second quarter and flat from the same period last year.
Oil and natural gas liquids made up 68% of output and gas 32%. Total production was 34 million barrels of oil equivalent.
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The company sold 34.8 million barrels of oil equivalent in the quarter, more than it produced, mainly due to the timing of crude loadings.
It received an average of $103 per barrel of oil equivalent for its output in the quarter. Its crude sold for $103 per barrel, a $6 premium to dated Brent.
Wider price premiums over Brent since early September will show up in fourth-quarter prices, because cargoes are usually sold weeks before delivery.
Gas sold for $108 per barrel of oil equivalent, about $18 below the average spot market reference price.
Gas sold ahead and under fixed-price contracts made up 29% of third-quarter gas volumes, at an average of $87 per barrel of oil equivalent.
Another 25% was sold on month-ahead pricing, which was about $22 per barrel of oil equivalent below spot in a rising market. The effect would be the opposite in a falling market, the company said.
Free cash flow in the third quarter was hit by two cash tax payments totalling about 10.8 billion Norwegian crowns, about $100 million related to the closing of the Pandion acquisition and the DNO swap, and a $350 million dividend for the second quarter paid in September.
Original Article
Vår Energi cuts 2026 output forecast; Q3 production at 369,000 boepd
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