Vår Energi and Kistos Energy Norway have started production through Jotun floating production, storage and offloading (FPSO) unit at the Balder field in the North Sea.
The production from Jotun FPSO marks the extension the life of the first production license, PL001, on the Norwegian Continental Shelf, adding high value barrels towards 2045 and beyond.
By bringing the Jotun FPSO onstream, production is expected, within three to four months after start-up, to increase by approximately 80 thousand barrels of oil equivalent per day (kboepd) gross, on top of the current production of approximately 30 kboepd gross through the Balder FPU and Ringhorne facilities.
The Jotun FPSO will have a low operating cost of around $5 per barrel and estimated gross proved plus probable recoverable reserves from the project at 150 million barrels of oil equivalent (mmboe).
Vår Energi is operator of the Balder field with 90% working interest, with Kistos Energy Norway as partner with 10%.
All 14 production wells have been completed and will be brought onstream during the ramp-up period to reach peak production.
Together with the Balder Phase V project starting up later this year, the project has a payback time of around two years from the start-up.
In addition, with the Jotun FPSO installed as an area host, Vår Energi is taking necessary steps to add new production through infill drilling, exploration and tie-back developments with short time to market.
“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 and facilities designed to extend production beyond 2045, the start-up of the Jotun FPSO opens up wide potential for continued value creation from the area,” said Nick Walker, CEO of Vår Energi.
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