Vår Energi approves Balder Next New Wells project in the Central North Sea

Vår Energi ASA has sanctioned the Balder Next New Wells project in the Central North Sea on the Norwegian Continental Shelf in about 125 m of water.

The project comprises a first-phase development of seven new wells tied back to the Jotun FPSO, with expected start-up in fourth quarter 2027. It will develop 86 million boe in proved plus probable reserves, an increase from about 75 million boe gross communicated earlier this year, reflecting continued improvement of the project.

The Balder Next New Wells project forms part of the next phase of developments in the area and is enabled by existing infrastructure and available capacity. The development also supports the planned consolidation of infrastructure, including decommissioning of the Balder FPU from 2028, reducing operating costs and emissions.

Vår Energi has taken final investment decision (FID) on the project which has a breakeven of about $30/boe and an internal rate of return of more than 35%.

The Balder Area comprises two main fields, Balder and Ringhorne Øst. Production from the area commenced in 1999, through Balder field, which has been developed with subsea wells tied back to the Jotun FPSO. The Ringhorne platform commenced production in 2003 and is connected to the Balder FPU which processes and stores oil ready for offload onto shuttle tankers.

Vår Energi is operator of the Balder field (90%) with partner Kistos Energy Norway AS (10%).