Norwegian oil and gas player Vår Energi and its partner, Kistos Energy, have rubberstamped a final investment decision (FID) to develop another multi-well addition to an oil project in the North Sea next year, augmenting oil output off the coast of Norway.
By taking a final investment decision on the Balder Next New Wells project in the North Sea, Vår Energi and Kistos are progressing the next phase of development in the Balder area and supporting their long-term production target. This project comprises a first phase development of seven new wells tied back to the FPSO Jotun , with expected start-up in the fourth quarter of 2027.
This North Sea tie-back will develop 86 million barrels of oil equivalent (boe) gross in proved plus probable reserves, an increase from around 75 million boe gross communicated earlier this year, reflecting continued improvement of the project, which is said to have strong economics, delivering high value, with a breakeven of around $30 per boe and an internal rate of return of more than 35%.
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Vår Energi is operator (90%) of the Balder field, with Kistos Energy Norway as its partner (10%). The project is enabled by the operator’s project factory approach, combining standardised solutions, pre-commitments and strategic partnerships to accelerate execution and reduce time to market.
Torger Rød , COO of Vår Energi, commented: “ This project demonstrates our ability to mature and execute a portfolio of high-quality developments, excellent resource management, supporting production growth and long-term value creation. The Balder area is a key hub in our portfolio, and the Balder Next New Wells project will contribute to sustaining production from the Jotun FPSO and unlocking more resources over time .”
The Balder area is a core contributor to Vår Energi’s production target of delivering above 400,000 barrels of oil equivalent per day long term. Following the start-up last summer, the FPSO Jotun is enabling efficient tie-back of new wells and continued value creation over time.
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The Balder Next New Wells project forms part of the next phase of developments in the area and is enabled by existing infrastructure and available capacity. The development also supports the planned consolidation of infrastructure, including decommissioning of the Balder FPU from 2028, reducing operating costs and emissions.
Andrew Austin , Executive Chairman of Kistos, emphasized: “Following the project’s delivery, we will have increased gross production by an additional 11 mmboe from the previously communicated figure of 75 mmboe earlier this year by the operator, bringing the total to 86 mmboe.
“Our investment in Norway continues to deliver significant upside for the company and its shareholders, highlighting the strength of the partnership with Vår in delivering high-quality, value-accretive developments on the Norwegian Continental Shelf.”
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