Vår Energi and license partner Kistos Energy Norway have reached the final investment decision (FID) for the Balder Phase VI project in the Balder area, off Norway…
Vår Energi and license partner Kistos Energy Norway have reached the final investment decision (FID) for the Balder Phase VI project in the Balder area, off Norway.
The fast-track development will be a key contributor to sustaining long term, high-value production through the newly installed Jotun floating production storage offloading vessel (FPSO).
The Balder Phase VI project will develop around 15 million barrels of oil equivalent (mmboe) of gross proved plus probable (2P) reserves for a capital spend of $260 million gross.
According to Vår Energi, the project has strong economics, with a break-even well below $35 per barrel, IRR above 35% and will pay back in less than a year from start of production at current prices.
The project consists of one additional multilateral production well, installation of a new subsea template, and a flowline that will be tied into the Jotun FPSO.
The sanctioning of Balder Phase VI aligns with Vår Energi’s strategy of maximizing value in core hub areas by utilizing existing capacity and infrastructure and demonstrates how the upgraded Jotun FPSO will contribute to continued value creation in the area. Balder Phase VI is expected to come onstream by the end of 2026.
Vår Energi is on
Content Original Link:
" target="_blank">
