Vår Energi sanctions 86-MMboe Balder development in North Sea
(WO) — Vår Energi has taken final investment decision (FID) on the Balder Next New Wells project in the North Sea, advancing the next phase of development in the Balder area and adding 86 MMboe of reserves tied to the Jotun FPSO.
The project's first phase includes seven new wells that will be tied back to the Jotun FPSO, with startup expected in the fourth quarter of 2027. Vår Energi said the development will recover 86 MMboe gross of proved and probable reserves, up from the approximately 75 MMboe estimate previously communicated earlier this year.
According to the company, the project has a breakeven price of approximately $30/boe and an expected internal rate of return exceeding 35%.
“This project demonstrates our ability to mature and execute a portfolio of high-quality developments, excellent resource management, supporting production growth and long-term value creation,” said Torger Rød, chief operating officer of Vår Energi. “The Balder area 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 more resources over time.”
The development is part of Vår Energi's broader strategy to maintain production above 400,000 boed over the long term. Since coming onstream in 2025, the Jotun FPSO has served as a key hub for additional field developments and tieback opportunities in the Balder area.
Vår Energi said the project leverages existing infrastructure and available processing capacity on the Jotun FPSO, while supporting future infrastructure consolidation plans. The company expects the development to contribute to the planned decommissioning of the Balder floating production unit beginning in 2028, helping reduce operating costs and emissions.
The project will be developed using Vår Energi's project factory approach, which combines standardized solutions, strategic partnerships and pre-commitments aimed at accelerating execution and reducing development costs.
Vår Energi operates the Balder field with a 90% interest. Kistos Energy Norway holds the remaining 10% stake.
