Vår Energi Revives FPSO Jotun at Balder Field, North Sea

Vår Energi, a Norwegian independent upstream oil and gas player, has successfully reactivated the floating production, storage, and offloading (FPSO) vessel Jotun at the Balder field in the North Sea. This milestone is expected to bring significant value to the project well into the future.

Following the recent final investment decision (FID) for the Balder Phase VI project, Vår Energi has wasted no time in bringing the FPSO Jotun back online. This move signals the beginning of a new chapter for the Balder field, extending the life of the first production license, PL001, on the Norwegian Continental Shelf (NCS).

The revival of the FPSO is projected to boost oil production by approximately 80,000 barrels of oil equivalent per day (kboepd) gross within just a few months, adding to the current production from the Balder FPU and Ringhorne facilities.

Vår Energi anticipates operating the FPSO Jotun at a low cost of around $5 per barrel, with estimated gross proved plus probable recoverable reserves from the project standing at 150 million barrels of oil equivalent (boe).

As the operator of the Balder field with a 90% stake, Vår Energi collaborates with Kistos Energy Norway as a 10% partner. All 14 production wells have been completed, and they are set to come online gradually to achieve peak production levels.

With the Balder Phase V project also set to commence production later this year, Vår Energi expects a quick payback period of around two years. The company is committed to achieving carbon neutrality in its net equity operational emissions by 2030 and boasts equity stakes in 42 producing fields.

By utilizing the FPSO Jotun as an area host, Vår Energi aims to enhance production through infill drilling, exploration, and tie-back short-time-to-market developments. The Balder X project, part of the Balder Future redevelopment initiative, is poised to unlock an additional 200 million barrels of reserves, extending production to 2045.

Nick Walker, CEO of Vår Energi, expressed his optimism about the company’s growth trajectory, stating, “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 400 kboepd in the fourth quarter of this year.”

“Furthermore, with infrastructure designed to support production beyond 2045, the restart of the Jotun FPSO presents ample opportunities for sustained value creation in the area,” he added.