Vår Energi ASA has reported a major update on its Balder X development project, located on the Norwegian continental shelf . The company announced that the start of production, originally planned for the end of 2024, has been postponed to the second quarter of 2025. This change in schedule, however, will have a limited impact on this year’s planned production and will not significantly affect capital costs.
Work at FPSO Jotun delays Balder X project
According to the company, the decision to delay production is due to the need to complete additional work on the FPSO Jotun vessel at the Rosenberg shipyard prior to installation at the Balder field. Despite the progress made, there are still outstanding tasks onshore that require attention before proceeding with the offshore installation and commissioning phase.
Nick Walker, CEO of Vår Energi, stressed that the company remains on target to achieve production of 280-300 thousand barrels of oil equivalent per day (kboepd) by 2024 and remains on track to achieve production of around 400 kboepd by the end of 2025.
Vår Energi secures reserves for 2045
The Balder X project is key to securing production in the Balder Area beyond 2045, unlocking proven reserves of approximately 150 million barrels of oil equivalent (mmboe). In addition, drilling of six new wells will begin in the first half of 2025 as part of Phase V of the project, with the expectation of completing the work in 2026.
The deferral of commissioning has also resulted in a cost review, with an estimated $400 million increase in the project, 75% of which is incurred in 2025. However, Vår Energi has adjusted its capital expenditure forecast for 2024, reducing it to approximately $2.6 billion, reflecting both savings elsewhere and a favorable Norwegian krone exchange rate.
Balder X continues to be a key part of Vår Energi’s long-term strategy. Vår Energiwith the goal of maintaining and expanding its position in the North Sea. North Seaensuring a robust future for its operations in the region.
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Source and photo: Vår Energi
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