Revamped FPSO begins 20-year chapter of North Sea project’s oil story

Vår Energi, a Norwegian independent upstream oil and gas player, has put a floating production, storage, and offloading (FPSO) vessel back into operation at an oil project in the North Sea off the coast of Norway. This milestone is interpreted to add high-value barrels towards 2045 and beyond.

Shortly after disclosing a final investment decision (FID) for the Balder Phase VI project to sustain long-term, high-value production through the FPSO Jotun, Vår Energi has brought the FPSO online, said to mark the start of a new era for the Balder field in the North Sea, extending the life of the first production license, PL001, on the Norwegian Continental Shelf (NCS).

As a result, oil production is expected to increase by approximately 80,000 barrels of oil equivalent per day (kboepd) gross within three to four months after start-up, on top of the current production of around 30 kboepd gross through the Balder FPU and Ringhorne facilities.

The Norwegian player claims that the FPSO Jotun will have a low operating cost of around $5 per barrel and estimated gross proved plus probable recoverable reserves from the project at 150 million barrels of oil equivalent (boe).

Vår Energi, as the operator (90%) of the Balder field, with Kistos Energy Norway as its partner (10%), highlights that all 14 production wells have been completed and will be brought on stream during the ramp-up period to reach peak production. 

Coupled with the Balder Phase V project coming on stream later this year, the project has a payback time of around two years. Vår Energi, which aims to become carbon neutral in its net equity operational emissions by 2030, has around 1,400 employees and equity stakes in 42 producing fields.

With the FPSO Jotun installed as an area host, the Norwegian operator emphasizes that it is taking necessary steps to add new production through infill drilling, exploration, and tie-back short-time-to-market developments.

The Balder X project is set to recover around 200 million barrels of additional reserves from the Balder-Ringhorne area, extending the production lifetime to 2045, as part of the Balder Future redevelopment project in the North Sea.

Nick Walker, CEO of Vår Energi, commented: “Vår Energi is set for transformative growth in 2025. Together with the recent start-ups of Halten East and Johan Castberg, this marks a key milestone in reaching our production target of more than 400 kboepd in the fourth quarter of this year.

“Furthermore, with infrastructure and facilities designed to extend production beyond 2045, the start-up of the Jotun FPSO opens up wide potential for continued value creation from the area.”