Norwegian continental shelf producer Vår Energi ASA has narrowed its output forecast for 2025 due to “operational challenges” at the Balder field in the North Sea and the Johan Castberg field in the Barents Sea.
“At Johan Castberg, some issues with the offloading hose have led to periods of reduced production in November and again now in December”, Vår Energi, majority-owned by Italy’s state-controlled Eni SpA, said in a statement on its website.
“In the Balder area, there is recently experienced reduced production at the Jotun FPSO [floating production, storage and offloading vessel] caused by operational interruptions following the just started up Balder Phase V project tied-in to the FPSO.
“Both the Johan Castberg and Balder fields are expected back at plateau production by the end of December”.
The Jotun FPSO, which started production June, has a declared gross capacity of over 80,000 boed. Vår Energi is operator with a 90 percent stake.
Johan Castberg, put onstream March, has a gross peak production of 220,000 barrels of oil per day, according to the owners. Vår Energi owns 30 percent of the Equinor ASA-operated Johan Castberg.
Vår Energi now expects to average 330,000-335,000 barrels of oil equivalent a day (boed) this year. Its previous guidance was 330,000-360,000 boed.
However, it said it was maintaining its 2026 projection of 400,000 boed.
“Vår Energi has started up nine growth projects during 2025, delivering transformational production growth”, the statement said. “The company’s production potential when all assets are producing is in the range of 440 to 460,000 boed”. For 2024 Var Energi had reported a production of 280,000 boed.
The nine projects it put online in 2025 are Halten East, Johan Castberg, Balder’s Jotun FPSO, Ormen Lange Phase 3, Snøhvit Askeladd Vest, the Gjøa Low Pressure Project, Åsgard Subsea Compression Phase 2, Balder Phase V and Åsgard LPP3. The Halten East, Balder and Johan Castberg projects have had the biggest contributions so far, according to a statement by the company December 17.
“At peak, the nine projects will contribute with around 180,000 boed net production and have developed 390 million barrels of oil equivalent of net proved plus probable reserves, reinforcing Vår Energi’s position as a leading producer on the Norwegian continental shelf”, Vår Energi said in the earlier statement.
In addition to the start-ups, Var Energi has sanctioned 10 projects this year: the Previously Produced Fields in the Greater Ekofisk Area, the Eldfisk North Extension, the Mikkel Flow Conditioning Unit, Johan Castberg Isflak and Increased Oil Recovery projects, the first phase of Balder Next, Balder Phase VI, Fram Sør, the Gudrun Low Pressure Project and Snorre Gas Export.
“These developments form part of the company’s early-phase portfolio of around 30 high-quality projects”, Vår Energi said in a statement December 18.
“The projects are adding high-value barrels to sustain production of between 350,000 and 400,000 barrels of oil equivalent per day towards 2030 and beyond”.
“In total, the 10 sanctioned projects add significant proved plus probable reserves of around 160 million barrels of oil equivalent net to Vår Energi”, the company said.
“The projects demonstrate strong economics, with an average portfolio rate of return of above 30 percent and breakeven price of around $30 per barrel”.
To contact the author, email jov.onsat@rigzone.com
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