Vår Energi, an oil and gas company in Norway, has announced a revised schedule for the commencement of the Balder X project in the North Sea.
The company has delayed the start of production as work on the Jotun floating production, storage, and offloading (FPSO) for the project is yet to be finished.
Therefore, the timeline for the first oil from the project has been moved to the second quarter of 2025, a shift from the initially planned fourth quarter of this year.
Vår Energi revealed that it has completed all development wells and the installation of subsea production systems.
As a result of the postponement, the project's cost basis has also been updated, reflecting an additional pretax expense of approximately $400m.
Vår Energi has also adjusted its capital expenditure guidance for 2024, reducing it from $2.7bn-$2.9bn to around $2.6bn.
Despite the delay, the company's production target for 2025 remains on track, aiming to reach around 400,000 barrels of oil equivalent per day (boepd) by the end of next year.
The Balder X project is set to secure production from the Balder Area beyond 2045.
It is estimated to have a gross peak production of 80,000boepd and unlocking gross proved plus probable reserves of approximately 150 million barrels of oil equivalent.
Once operational, the Jotun FPSO will serve as an area host, facilitating future growth opportunities such as Balder Phase V and Balder Phase VI projects.
Vår Energi CEO Nick Walker said: “Together with our suppliers we have made every effort to complete the final work on the Jotun FPSO at the Rosenberg yard to enable field installation before the winter weather period. However, despite recent good progress, some onshore completion and commissioning work required prior to sail-away remains.”
Vår Energi, holding a 90% operatorship in the Balder Area, works alongside Kistos Energy (Norway) AS, which holds a 10% partnership stake.
In May this year, Vår Energi agreed to sell its 20% interest in the Bøyla field to Concedo for $24m.
