Var Energi Starts Production at Jotun FPSO at Balder Field

Var Energi ASA said it has successfully started production through the Jotun floating production, storage and offloading vessel (FPSO) at the Balder field in the North Sea.

The FPSO extends the life of the first production license, PL001, on the Norwegian Continental Shelf, “adding high-value barrels towards 2045 and beyond,” the company said in a news release.

Within three to four months after the start of production, Var Energi expects to raise production by approximately 80,000 barrels of oil equivalent per day (boepd) gross, on top of the current production of approximately 30,000 boepd gross through the Balder floating production unit (FPU) and Ringhorne facilities.

The Jotun FPSO is projected to have an operating cost of around $5 per barrel and estimated gross proved plus probable recoverable reserves from the project at 150 million barrels of oil equivalent (MMboe), the company said.

All 14 production wells have been completed and will be brought onstream during the ramp-up period to reach peak production, Var Energi said.

Together with the Balder Phase V project starting later in the year, the project has a payback period of around two years, the company said.

With the Jotun FPSO installed as an area host, Var Energi said it is taking the necessary steps to add new production through infill drilling, exploration and tie-back development with a short time-to-market.

“Var Energi is set for transformative growth in 2025. Together with the recent start-ups of Halten East and Johan Castberg, this marks a key milestone in reaching our production target of more than [400,000 boepd] in the fourth quarter of this year,” Var Energi CEO Nick Walker said.

“Furthermore, with infrastructure and facilities designed to extend production beyond 2045, the start-up of the Jotun FPSO opens up wide potential for continued value creation from the area. I wish to extend the Company’s gratitude to the people in the project organisation, our suppliers, employees and our partner for the strong dedication and collaborative efforts required in successfully completing this complex project. Also, the support by the Norwegian authorities has been fundamental, and much appreciated,” Walker added.

Var Energi is the operator of the Balder field with a 90 percent stake, with Kistos Energy Norway AS as a partner owning 10 percent.

Johan Castberg Reaches Plateau

Meanwhile, the company said that production from the Equinor-operated Johan Castberg field in the Barents Sea has reached plateau levels after the completion of 17 wells.

The field contributes 66,000 barrels of oil per day (bopd) net to Var Energi at plateau and is an important catalyst for the company to achieve its growth target of reaching over 400,000 boepd by the fourth quarter of 2025, according to a separate statement.

Var Energi COO Torger Rod said, “We are pleased to see Johan Castberg producing at stable plateau levels, after a safe and successful start-up by Equinor in March this year. For Var Energi, this is an important milestone towards delivering on the company’s growth target of producing more than 400 kboepd in the fourth quarter of this year, while further strengthening our position as a leading player in the Barents Sea. The field will be producing for more than 30 years, contributing to significant growth and value creation in the years to come with a pay-back time of less than two years”.

The Johan Castberg FPSO has a gross capacity of 220,000 bopd, and the field holds gross recoverable reserves of between 450 million and 650 million barrels of oil. A total of 30 development wells will be drilled at the Johan Castberg field, with drilling operations expected to continue towards the end of 2026, according to the statement.

Equinor Energy AS is the operator of the asset with a 46.3 percent stake, with partners Var Energi owning 30 percent and Petoro AS owning 23.7 percent.

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