Vår Energi optimistic about production targets as North Sea FPSO ramps up

September 10, 2025, by Dragana Nikše

Norwegian upstream oil and gas player Vår Energi has achieved peak production at its floating production storage and offloading (FPSO) unit working at a field in the North Sea off Norway.

According to the operator, FPSO Jotun at the Balder field has reached its plateau production of over 80 thousand barrels of oil equivalent per day (kboepd) gross, on top of the current production of around 30 kboepd gross combined from the floating production unit (FPU) Balder and Ringhorne facilities.

The latest milestone is described as significant for the continued development of the Balder field. The company said this will add what it says are high-value barrels towards 2045 and beyond. It follows another milestone, a higher-than-expected production level of 400 kbpoed, which was achieved last month.

“The rapid ramp-up to peak production at the Jotun FPSO, alongside strong performance across our portfolio, puts us on track to meet our production target of around 430 kboepd in the fourth quarter of this year. With the new facilities in the Balder area designed to extend production beyond 2045 we are on track to create more value from the area,” said Nick Walker, CEO of Vår Energi.

Additionally, the Norwegian player said that 14 subsea production wells are now online, producing in line with expectations on average. Work is also ongoing to further optimize the production from FPSO Jotun as part of the Balder Future project.

Discovered in 1967, Balder is a field in the central part of the North Sea. In production mode since 1999, the field has been developed with subsea wells tied back to FPU Balder. The Ringhorne deposit, located nine kilometers away, is tied back to Balder.

Vår Energi is the operator and 90% interest holder of the Balder field within the license, with Kistos Energy Norway as partner (10%).

FPSO Jotun was brought online in late June, extending the life of the first production license, PL001, on the Norwegian Continental Shelf (NCS). Thanks to a connectivity upgrade, the unit recently became the first digitally enabled FPSO with edge computing onboard in the world.

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A final investment decision (FID) for the Balder Phase VI project was disclosed a few months ago. Combined with Balder Phase V, the project is expected to add additional capacity and help maintain high production from the Balder area.

According to Kistos, six new multi-branch subsea production wells are underway at Balder V, with expected production rates and reserves equivalent to the wells installed within the Balder Future project. Two of the Phase V wells are expected to come on stream in Q4 of this year, with the remaining wells to be completed in 2026.

As further disclosed by Kistost, Balder Phase VI will comprise a single multi-lateral well tied back to FPSO Jotun via the installation of a new subsea template and flowline. This project will target reserves of approximately 15 mmboe (gross), with start-up expected by the end of 2026.

“With our partner Var, we set out a very clear priority at the beginning of the year to deliver the Balder Future development project. Not only have we achieved first oil by the half-year-end, but we have also accelerated the production ramp-up to reach peak production well ahead of schedule,” noted Andrew Austin, Executive Chairman of Kistos.