Vår Energi files $2,16B Balder Future plan
- Project & Tenders
Vår Energi has submitted a development plan for the Balder Future project that is expected to prolong the production lifetime of the Balder and Ringhorne fields’ production lifetime to 2045.
The revised plan for Development and Operations for Balder and Ringhorne was submitted to the Norwegian Ministry of Petroleum and Energy on Tuesday. It is interesting to note that the Balder field is located in production license PL 001 – the very first license on the Norwegian Continental Shelf (NCS).
Balder Future represents a NOK 19.6 billion ($2.16 billion) investment, the operator said.
The Balder Future project involves drilling thirteen new production wells and one new water injection well on the Balder field the North Sea. The aim is to recover 136 million barrels of oil equivalent (Mboe), Vår Energi said Tuesday.
The project also includes extending the lifetime of the floating production storage and offloading vessel Jotun A FPSO. According to Vår Energi, the extension will give the PL001 license a total lifespan of over 80 years.
“We are proud to carry the PL 001 legacy forward, and by utilizing existing infrastructure, we contribute to good resource management on the NCS. For Vår Energi this is a major step, and we are proud to be the operator of the Balder Future project, which will be one of the largest projects on the NCS the coming years,” said Kragseth.
All these activities will take place while ordinary production continues at the Balder and Ringhorne fields.
Creating local jobs
Earlier this year, Vår Energi awarded an EPCI (Engineering, Procurement, Construction and Installation) contract to Rosenberg Worley in Stavanger, Norway for the lifetime extension of the Jotun A FPSO.
Also, Baker Hughes and Ocean Installer in Stavanger, will engineer, procure, construct and install new subsea production systems (SPS), umbilicals, risers and flowlines for the Jotun A FPSO.
“We want to generate opportunities wherever we have our business and do what we can to create employment and industry ripple effects. I’m happy to see that the main contracts have been awarded locally – which will benefit the supplier industry in the Stavanger region,” said Balder Future Project Manager, Lars Håvardsholm.
The Jotun A FPSO will be brought to shore mid-2020 for its upgrade and life extension. During the summer of 2022 the vessel will be reinstalled in the area between the Balder and Ringhorne fields.
Vår Energi has reserves and resources of more than 1,900 million barrels of oil equivalent (Mboe).
“Daily production is expected to reach 350,000 barrels of oil equivalent by 2023, following NOK 65 billion investments in development projects on the NCS. Balder Future is a key project in this growth plan,” the company said.