Vår Energi ASA and license partner Kistos Energy Norway AS have reached the final investment decision (FID) for the Balder Phase VI project in the Balder area of the Norwegian North Sea.
The fast-track development will contribute to sustaining production through the newly installed Jotun floating production storage offloading vessel (FPSO).
With the FPSO installed as the new host, Vår Energi chief operating offer Torger Rød said the company “will continue to unlock additional high value barrels from the Balder area through several phases of new developments and field optimizations,” which includes “Balder phase V, which will come on stream later this year.”
Vår Energi expects to reach production levels of more than 400,000 boe/d in this year’s fourth quarter and aims to organically sustain production long term through development of a portfolio of around 30 early phase projects, the company said. Balder Phase VI is one of about eight project sanctions expected this year.
The Balder Phase VI project will develop around 15 MMboe of gross proved plus probable (2P) reserves for a capital spend of $260 million (NOK 2.6 billion) gross. According to Vår Energi, the project holds a break-even “well below 35 USD per barrel, IRR above 35%, and will pay back in less than a year from start of production at current prices.”
The project consists of one additional multilateral production well, installation of a new subsea template, and a flowline that will be tied into the Jotun FPSO. Balder Phase VI is expected to come onstream by end-2026.
Early phase projects in the Balder area include Balder Next. The project is targeting additional gross contingent resources of around 55 MMboe and consists of taking the Balder Floating Production Unit (FPU) to shore for decommissioning, planned in 2028.
Selected wells producing though Balder FPU will be transferred to the Jotun FPSO. In addition, production will be accelerated as part of the Jotun FPSO debottlenecking project to increase production capacity on the FPSO, as well as developing new production wells, the company said.
Decommissioning of Balder FPU is expected to reduce operating costs by about $130 million/year gross and reduce CO2 emissions by around 80,000 tonnes/year gross.
With Jotun FPSO serving as the new area host at the Balder field, production is expected to remain at 70,000-80,000 boe/d gross towards 2030.
Vår Energi is operator (90%) of the Balder field, with Kistos Energy Norway AS as partner (10%).
