Norwegian oil and gas company Vår Energi and its partner Kistos Energy have approved a final investment decision (FID) to develop another multi-well addition to an oil project in the North Sea next year, increasing oil production off the coast of Norway.
By making the final investment decision on Balder Next New Wales Project in the North Sea, Vår Energi and Kistos are progressing in the next phase of development in Bald area And support the long-term production goal. This project includes the first phase development of seven new wells linked to the canal FPS or JotunIt is expected to begin operation in the fourth quarter of 2027.
This North Sea tie-up will develop 86 MMboe in proven and probable reserves, up from around 75 MMboe announced earlier this year, and reflects the continued improvement of the project, which is said to have strong economics, offering high value, with a breakeven of around US$30 per boe and an internal rate of return in excess of 35%.
Vår Energi is the operator (90%) of the Balder field, with Kistos Energy Norway as its partner (10%). The project is enabled by the operator’s project factory approach, which combines standardized solutions, upfront commitments and strategic partnerships to accelerate implementation and reduce time to market.
red boxVår Energi’s Chief Operating Officer commented: “This project demonstrates our ability to develop and deliver a range of high-quality developments, excellent resource management, and support long-term production growth and value creation. The Balder region is a key hub in our portfolio, and the Balder Next New Wells project will contribute to sustaining production from the Jotun FPSO and unlocking further resources over time“.
The Balder region is an essential contributor to Vår Energi’s production target of over 400,000 barrels of oil equivalent per day in the long term. after start Last summer, the FPSO Jotun was efficiently enabled Connecting new wells And continuing to create value over time.
The Balder Next New Wells project forms part of the next phase of developments in the area and is enabled by existing infrastructure and available capacity. The development also supports the planned consolidation of infrastructure, including the decommissioning of the station Bald FPU From 2028, which will reduce operating costs and emissions.
Andrew AustinKestos CEO confirmed: “Following delivery of the project, we will increase total production by an additional 11 million boe from the previously announced figure of 75 million boe earlier this year by the operator, bringing the total to 86 million boe.
“Our investment in Norway continues to deliver significant gains for the company and its shareholders, highlighting the strength of the partnership with Vår in delivering high-quality, value-accretive development projects on the Norwegian continental shelf.”
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