Var Energi to Proceed with Balder Next Project
Vår Energi ASA on Thursday announced a positive FID (final investment decision) on the Balder Next New Wells project on Norway's side of the North Sea, a tieback to the recently started-up Jotun floating production, storage and offloading vessel (FPSO).
Expected to begin production 2027, the 7-well project will develop 86 million barrels of oil equivalent (MMboe) gross proven and probable reserves. That estimate has been raised from about 75 MMboe, "reflecting continued improvement of the project", the Norwegian company said in a press release.
"The project has strong economics, delivering high value, with a breakeven of around $30 per boe and an internal rate of return of more than 35 percent.
"The project is enabled by Vår Energi’s project factory approach, combining standardized solutions, pre-commitments and strategic partnerships to accelerate execution and reduce time to market".
"The Balder area is a core contributor to Vår Energi's production target of delivering above 400 thousand barrels of oil equivalent per day long term", Vår Energi added. "Following the start-up last summer, the Jotun FPSO is enabling efficient tie-back of new wells and continued value creation over time.
"The development also supports the planned consolidation of infrastructure, including decommissioning of the Balder FPU from 2028, reducing operating costs and emissions".
FPSO Jotun, the Balder field's new production platform, went onstream June 2025 and ramped up to its capacity of over 80,000 barrels of oil equivalent a day in the same year.
Jotun adds to "current production of around 30,000 boed gross combined from the Balder floating production unit and Ringhorne facilities", Vår Energi said in a media release September 20, 2025, announcing Jotun had reached peak production.
The wider Balder hub, which includes the Breidablikk and Grane fields, contributed 118,000 boed to Vår Energi's net production in the first quarter, according to its quarterly report.
This year Vår Energi expects to put online the Balder Next-Jotun Debottlenecking and Balder Phase VI projects, alongside the Eldfisk North Extension and King Development projects, the report said.
Balder, discovered 1967, started production 1999 through FPSO Balder, according to information on government website Norskpetroleum.no.
Vår Energi operates Balder with a 90 percent stake. Kistos Energy Norway AS owns 10 percent.
As of the end of the first quarter Vår Energi had 15 projects in execution, representing about 290 MMboe in 2P net reserves.
"Additionally, the Company plans to develop more than 30 early phase projects accounting for 2C contingent resources of around 500 MMboe and expects to sanction up to 8 new projects during 2026", it said in its quarterly report.
To contact the author, email jov.onsat@rigzone.com
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