Offshore staff
SANDNES, Norway — Vår Energi says upgrade work on the Jotun FPSO continues at the Rosenberg yard in Stavanger, as part of the Balder X redevelopment project in the Norwegian North Sea.
According to the company’s latest results statement, the re-float and heavy-lift installations have been completed as planned with the current focus on executing the remaining construction work and commissioning.
Drilling and subsea activities also are progressing as scheduled, and the Jotun FPSO is now more than 85% complete, with startup of Balder X targeted for next summer.
However, a tightening supplier market and the need to mitigate schedule risk and improve construction productivity has raised the capex estimate by about $340 million net pre-tax to Vår Energi.
Later in the current quarter, the company will drill two operated exploration wells and participate in another, all in the Balder area.
The company is a partner to Equinor in the Johan Castberg development in the Barents Sea, currently expected to start up in fourth-quarter 2024. The FPSO is at Stord in western Norway, and all topside modules have been installed.
Completion and commissioning activities of the FPSO continue, as do preparations for the inshore phase prior to sail away.
The capex estimate for this project also has risen due mainly to the transfer of more work than planned from Singapore to Stord, increased complexity and lower than expected productivity.
Market prices for marine operations, drilling and completion services also have risen, the company said.
10.24.2023
