Vår Energi has commenced the tow-out of the Jotun floating production, storage and offloading (FPSO) vessel from the Worley Rosenberg yard in Stavanger to the Balder field in Norway.
The FPSO is being deployed as part of the larger Balder X project, which is expected to extend production from the Balder Hub until 2045 by developing gross proved plus probable (2P) reserves of 150 million barrels of oil equivalent (mboe) from the Balder area.
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The Balder X project will also facilitate the development of nearby discoveries by enhancing existing infrastructure and drilling new wells.
Vår Energi is the operator of the Balder field, holding a 90% stake, with Kistos Energy Norway holding the remaining 10% stake.
The company is progressing several early-phase projects in the Greater Balder area towards sanction.
These projects, including Ringhorne North, future phases of Balder and the King discovery, target gross contingent resources exceeding 70mboe.
By deploying the Jotun FPSO as an area host, Vår Energi aims to boost production through infill drilling, exploration and tie-backs.
The Jotun FPSO will also enable infrastructure optimisation, including decommissioning the Balder floating production unit and electrifying the Balder/Grane Area to lower costs and emissions.
Vår Energi CEO Nick Walker said: “We are set for transformative growth in 2025 and are on track to reach above 400,000 barrels of oil equivalent per day (boepd) in the fourth quarter [Q4]. Balder X is a key element to this plan and once the Jotun FPSO comes on stream, production from the field will be close to quadrupled, adding around 80boepd gross at peak.
“Balder X, with a payback time of around two years, including the sanctioned Balder Phase V project, marks the start of a new era in the North Sea, extending the lifetime of the first production licence PL001 on the Norwegian Continental Shelf to 2045 and beyond, and opens a wide potential for continued value creation.”
The Balder X project also includes the drilling of 14 new production wells and one water injection well, which are set to commence production by the end of Q2 2025. The expected ramp-up period to peak production is estimated to be three to four months.
Vår Energi COO Torger Rød added: “We have continued to grow our resource base through successful exploration in the area and are stepping up the pace, moving several tie-back projects forward at speed to capitalise on the Jotun FPSO.
“This will sustain production longer term and includes Balder Phase V, planned to come on-stream later this year, and Balder Phase VI expected to be sanctioned in 2025, together adding a further 45–50mboe [million barrels of oil equivalent] gross.”
The Jotun FPSO’s tow-out involves several stages, beginning with inclination tests at the quayside.
Following these tests, the vessel will be moved to Åmøyfjorden, near Stavanger, for inshore sea trials and anchor installation work.
Subsequently, the FPSO will be towed to the Balder field for installation and hook-up to the 14 already-completed production wells, with final commissioning to follow.
In February 2025, Vår Energi confirmed an oil discovery at the Zagato exploration well near the Goliat field in the Barents Sea.
