Vår Energi has initiated production via the Jotun floating production, storage, and offloading (FPSO) vessel, part of the Balder X project in the Norwegian North Sea.
This development extends the life of production licence PL001 on the Norwegian Continental Shelf, contributing additional barrels for the next two decades and beyond.
In three to four months after commencement, production is projected to increase by approximately 80,000 barrels of oil equivalent per day (kboepd), supplementing the current output of around 30kboepd through existing Balder floating production unit (FPU) and Ringhorne facilities.
Accordin to Vår Energi, Jotun FPSO will operate at a cost of approximately $5 per barrel, with estimated gross recoverable reserves at 150 million barrels of oil equivalent (mmboe).
Originally slated for 2022, the Balder X project faced delays due to COVID-19 and global supply chain disruptions.
All 14 production wells that are part of the project, are completed and will become operational during the ramp-up phase to achieve peak production.
In conjunction with Balder Phase V, expected later this year, the project anticipates a payback period of about two years. Vår Energi plans further expansion through infill drilling and tie-back developments with Jotun FPSO as an area host.
Balder X aims to maintain production from the Balder Area beyond 2045, unlocking reserves of around 150mmboe with peak production at 80 kboepd. Balder Phase V includes drilling six new wells to utilise remaining subsea template slots for capturing over 30 mmboe in reserves, commencing in early 2025. Additionally, Balder Phase VI is under consideration for new subsea facilities and wells, with an investment decision expected by mid-2025.
Vår Energi CEO Nick Walker said: “Vår Energi is set for transformative growth in 2025. Together with the recent start-ups of Halten East and Johan Castberg, this marks a key milestone in reaching our production target of more than 400kboepd in the fourth quarter of this year.
“Furthermore, with infrastructure and facilities designed to extend production beyond 2045, the start-up of the Jotun FPSO opens up wide potential for continued value creation from the area.”
The Balder field has been producing since 1999 under production license PL001. Vår Energi operates the site with a 90% stake, partnering with Kistos Energy Norway holding a 10% share.
Vår Energi recently sanctioned the final investment decision (FID) for Balder Phase VI. This phase will develop approximately 15mmboe in reserves for a capital expenditure of NOK2.6bn ($260m). It entails installing a new subsea template and a flowline linked to Jotun FPSO.
The phase aligns with Vår Energi’s strategy to maximise value using existing infrastructures and is anticipated to come onstream by late 2026.
