Norway's Vaar Energi has again postponed the startup of its North Sea Balder X oil and gas project, planning to begin output in the second quarter of 2025 rather than by the end of this year, the company said on Wednesday.
Plagued by cost overruns and delays, Balder X had originally been set to start production in 2023 but this was later postponed to the third quarter of 2024 and subsequently to the fourth quarter of this year.
The delay causes an additional project cost of around $400 million pre-tax of which approximately 75% will be incurred in 2025, said Vaar, which is majority owned by Italy's Eni.
Vaar maintained a goal for the company's production this year of 280,000-300,000 barrels of oil equivalent per day (boed) and for this to rise to around 400,000 boed by the end of 2025.
Balder X will secure production from the Balder area beyond 2045, unlocking an expected 150 million barrels of oil equivalent and with peak production of 80,000 boed, Vaar said.
"There remains significant additional resource upside in the area and further exploration drilling and tie-back development phases are being planned," it added.
Vaar holds a 90% stake in Balder X while Britain's Kistos KIST.OL owns the remaining 10%.
(Reuters)