Norway’s Vår Energi has commissioned production from the Jotun floating production, storage and offloading (FPSO) unit on the Balder field. Balder fieldfield, located on the Norwegian continental shelf. This step marks a major breakthrough for the upstream sector in Norway and sets the stage for a substantial increase in production volume.
With this start-up, the company plans to achieve an additional production of 80,000 barrels of oil equivalent per day in the next three to four months, which will be added to the current 30,000 barrels produced by the Balder FPU and Ringhorne facilities. The Jotun FPSO FPSO Jotun will operate at an estimated cost of only US$5 per barrel, which reinforces the project’s profitability.
Balder production boosts strategy and expansion
The restart of operations at Jotun, in addition to representing the extension of the life of the PL001 license beyond 2045, also reinforces the positioning of Vår Energi as a key operator in the region. The company anticipates that this project, together with the developments at Johan Castberg and Halten East, will contribute significantly towards reaching its target of 400 kboepd by the fourth quarter of 2025. by the fourth quarter of 2025.
Nick Walker, CEO of Vår Energi, highlighted the collaboration between suppliers, employees and Norwegian authorities, underlining that institutional support was essential to achieve the execution of a project of this complexity.
Infrastructure and expansion plans
The 14 programmed wells have already been completed and will be progressively activated during the production ramp-up phase. In addition, with the Jotun FPSO installed as an area receiver, additional growth potential is contemplated through infill drilling, new exploration and tie-back developments.
The estimated return on investment is around two years. The sum of these elements makes the project a central component of Vår Energi’s long-term strategy in the North Sea. North Sea.
The company operates the Balder field with a 90% interest, while the remaining 10% is held by Kistos Energy Norway AS.
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Source and photo: Vår Energi
