Vår Energi has pushed back the targeted startup date for its Balder X development in the Norwegian North Sea to second-quarter 2025.
The company’s year-end 2025 production target of about 400,000 boe/d is not affected by the updated project startup.
CEO Nick Walker said the company had been working to limit the carryover work into the offshore installation and startup phase as much as possible.
“Together with our suppliers, we have made every effort to complete the final work on the Jotun FPSO at the Rosenberg yard to enable field installation before the winter weather period. However, despite recent good progress, some onshore completion and commissioning work required prior to sail-away remains.”
The company still expects to meet its production target of 280,000 to 300,000 boe/d this year, rising to about 400,000 boe/d by the end of 2025.
All the project’s development wells have been completed and all subsea production systems installed. The focus now is on completing the upgrades to the Jotun FPSO fully onshore, allowing first oil to be delivered in second-quarter 2025.
The overall cost basis for the project has been revised upward by about NOK400 million (gross pre-tax) to ~NOK4.27 billion ($406 million), with about 75% of the extra outlay incurred in 2025.
Balder X is designed to sustain production from the Balder Area beyond 2045, unlocking 2P reserves of about 150 MMboe, with peak production of 80,000 boe/d.
The Jotun FPSO will serve as an area host, including for future growth opportunities. Balder Phase V is also being progressed, with drilling of six production wells to use the remaining subsea template well slots to exploit 2P reserves of more than 30 MMboe.
Drilling of these wells will start in the first half of 2025 and be completed in 2026. In addition, the Balder Phase VI project is being matured to add new subsea facilities and wells, with an investment decision planned for first-half 2025.
There is upside for further resources in the area with more exploration drilling and further tieback development phases planned.
Vår Energi is operator (90%) of the Balder Area with Kistos Energy (Norway) holding the remaining 10%.
