Norway’s offshore safety watchdog, the Petroleum Safety Authority (PSA), has given Repsol consent for the removal of the Petrojarl Varg FPSO and subsea structures on the Varg field, located in the North Sea offshore Norway.

Previously, Spanish oil and gas company Repsol decided to shut down the Varg field as it was no longer considered profitable.

Repsol is the operator of the Varg field following its 2015 buy-out of Talisman, which had been the operator since 2005.

The field was developed using the Varg A wellhead facility, subsea structures and the Petrojarl Varg FPSO. Production from the field began in 1998.

The safety agency said that Repsol plans to cease production from the field in June 2016, and has applied for consent to remove Petrojarl Varg and the subsea structures on the field. Petrojarl Varg will leave the field in August 2016, while removal of the subsea structures will start later in the third quarter.

According to the offshore safety agency, the Varg A wellhead facility will remain in place while plugging and removal of the wells takes place. Repsol already contracted DeepOcean for provision of engineering, procurement, removal and disposal (EPRD) of Varg subsea facilities.

Regarding the fate of the FPSO, Teekay, the company that owns the FPSO Varg, recently informed it would cut its workforce by 70 positions due to a contract loss with Repsol. Following the departure from the field, the FPSO will go into layup.

Petrojarl Varg is a ship-shaped, turret moored, FPSO delivered in 1998. The FPSO has a storage capacity of 470,000 bbls and accommodation for 77 persons.