Vår Energi ASA will delay first oil from Balder X on the Norwegian continental shelf (NCS) due to additional onshore work required for the Jotun FPSO.
The FPSO was to sail away from the Rosenberg yard before the winter weather period (OGJ Online, Feb. 13, 2024). With all development wells completed and all subsea production systems installed, the plan is now to complete the FPSO vessel fully onshore, enabling first oil within second-quarter 2025.
As part of the decision not to sail, the cost basis for the project has been updated reflecting a sail-away in the spring of 2025, adding an additional project cost of $400 million gross pre-tax of which about 75% will be incurred in 2025, the company said.
Balder X will secure production from the Balder area beyond 2045, unlocking gross proved plus probable (2P) reserves of around 150 MMboe and with gross peak production of 80,000 boe/d.
The company’s end-2025 production target of about 400,000 boe/d is not affected by delay, the the ocmpany said.
Balder Phase V includes drilling of six production wells to utilize the remaining subsea template well slots to capture gross 2P reserves of more than 30 MMboe. Drilling will begin in first-half 2025 and be completed in 2026. In addition, the Balder Phase VI project is being matured to add new subsea infrastructure and wells, with expected investment decision planned first-half 2025.
Vår Energi is operator of the Balder area (90%) with partner Kistos Energy (Norway) AS holding the remaining 10%.
