Ocean Installer Secures EPCI Contract from Var Energi
Subsea services company Ocean Installer has received a fast-tracked engineering, procurement, construction, and installation (EPCI) contract from Var Energi. This contract is aimed at advancing the Balder Phase VI project in the North Sea. The initiative is part of Var Energi’s broader strategy for developing the Balder area, which revolves around the recently deployed Jotun floating production storage and offloading vessel (FPSO), as announced by Ocean Installer in a recent press release.
Scope of Work and Project Timeline
Ocean Installer will be responsible for subsea umbilicals, risers, and flowlines (SURF) operations, which include the fabrication and installation of flexible flowlines and umbilicals. While specific financial terms of the contract remain undisclosed, the project is anticipated to commence oil production by the end of 2026. This timeline underscores the commitment of both companies to the effective development of subsea tie-backs on the Norwegian Continental Shelf (NCS), as noted in the release.
Strategic Partnership and Ongoing Collaboration
“Var Energi represents a significant client for Ocean Installer, as well as the broader Moreld group. It’s particularly exciting for us to finalize a new agreement in the same week that the Jotun FPSO begins its oil production as part of the Balder Future project, where Ocean Installer has had a crucial role,” stated Moreld CEO Geir Austigard. The contract is being executed under the strategic partnership established with Var Energi in June 2022 and continues a multi-year collaboration in the Balder region, which has seen Ocean Installer involved since 2019, according to the announcement.
Expertise in Subsea Tiebacks
“We are pleased that Var Energi continues to have confidence in our capabilities. Subsea tiebacks have been central to our operations for the past 14 years, and as the NCS shifts toward more marginal fields, our expertise is essential for enabling quicker and more cost-effective developments. Collaborating with Var Energi to leverage existing infrastructure and our past experience has significantly expedited the overall project timeline, a point of pride for both companies,” commented Ocean Installer CEO Kevin Murphy.
Recent Exploration Success in the Barents Sea
In a related development, Var Energi recently announced a commercial oil discovery in the Equinor-operated Drivis Tubaen prospect in the Barents Sea, adding to the company’s recent exploration achievements in the region. This new find is being considered as a potential tie-in to the Johan Castberg facilities, as detailed in a separate statement from Var Energi. Preliminary estimates suggest recoverable resources ranging from 9 million to 15 million barrels of oil equivalent (MMboe). The well was drilled within the Drivis structure, part of the Johan Castberg field, as part of efforts to enhance development in the area.
Future Outlook for Johan Castberg Area
Var Energi COO Torger Rod remarked, “This discovery highlights the ongoing potential of the Johan Castberg area and illustrates the effectiveness of our infrastructure-driven exploration strategy. With the newly initiated field, we have opened several avenues in the Barents Sea, a largely underexplored region with significant resource potential. As production stabilizes at plateau levels and the Isflak development progresses toward approval and initiation in 2028, we are strategically positioned to sustain high production levels at Johan Castberg through 2030 and beyond.” The partners in the Johan Castberg project include Equinor with a 46.3 percent interest, Var Energi holding 30 percent, and Petoro with a 23.7 percent stake.
