Norwegian oil and natural gas company Vår Energi is taking the Jotun FPSO ashore for upgrades to extend the life of the Balder Area in the North Sea.

Producing oil from the Jotun field in the North Sea since 1999, the Jotun FPSO will be upgraded at Rosenberg Worley in Stavanger.

The firm said that the upgrade project is part of the firm’s investment to increase the oil recovery from the Balder field in the North Sea.

The project is expected to extend the life of the field (PL 001) by 2045, giving Norway’s oldest license a lifetime of 80 years.

The Balder Future project will also include drilling 13 new production wells and one water injection well on the field and it intends to extract additional 136 million barrels of oil equivalent (Mboe).

Vår Energi CEO Kristin Kragseth said: “We are proud to be continuing the PL 001 legacy, and by utilizing existing infrastructure we contribute to good resource management.

“There is still uncertainty about how the Covid 19 pandemic will affect the project, but the goal is to start production in the second half of 2022.”

The Balder extension project, which involves an investment of NOK 19.6bn ($2.03bn), is expected to create 30,000 full-time man-years and operational period (2018-45), and create 4,500 full-time man-years during peak time that is 2020-22.

The vessel is predicted to enter Åmøyfjorden on 15 June this year and will undergo preparation works for two weeks before the last tow into the Rosenberg Worley in Stavanger.

The upgrade work on the project will include an overhaul of the turret, pipes, process equipment, hulls, marine systems, living quarters, control and security systems.

The firm has selected Stavanger based Baker Hughes and Ocean Installer to provide engineering, procurement, construction and installation of new subsea systems (SPS), umbilicals, risers and transport pipes for the Jotun FPSO.

The upgraded Jotun FPSO is scheduled to be re-installed between Balder FPSO and the Ringhorne platform in 2022.

In December last year, Vår Energi and its partner Mime Petroleum have submitted a revised plan for the development and operations (PDO) for the Balder and Ringhorne fields in the North Sea.