Norwegian oil and gas company Vår Energi has announced that its floating production storage and offloading (FPSO) unit has reached peak production at a field located in the North Sea, off the coast of Norway.
Peak Production Achieved
The FPSO Jotun at the Balder field has successfully achieved a plateau production exceeding 80,000 barrels of oil equivalent per day (kboepd) gross. This milestone is in addition to the current output of approximately 30 kboepd gross from the combined floating production unit (FPU) Balder and Ringhorne facilities. This achievement is considered pivotal for the ongoing development of the Balder field, with the company projecting that it will contribute high-value barrels well into 2045 and beyond. This follows a previous milestone where production levels reached an impressive 400 kboepd last month.
Future Production Goals
Nick Walker, CEO of Vår Energi, stated, “The swift escalation to peak production at the Jotun FPSO, along with robust performance across our assets, positions us to meet our production goal of approximately 430 kboepd in the fourth quarter of this year. With new facilities in the Balder area designed to extend production beyond 2045, we are set to enhance the value generated from this region.”
Subsea Production Wells and Optimization Efforts
Furthermore, Vår Energi has reported that 14 subsea production wells are now operational, performing in line with anticipated output levels. Efforts are ongoing to further optimize production from the FPSO Jotun as part of the Balder Future initiative. The Balder field, discovered in 1967 and operational since 1999, has been developed with subsea wells connected to the FPU Balder, while the nearby Ringhorne deposit is also linked to Balder.
Ownership and Technological Advances
Vår Energi serves as the operator and holds a 90% stake in the Balder field, with Kistos Energy Norway holding the remaining 10%. The FPSO Jotun commenced operations in late June, extending the life of the first production license, PL001, on the Norwegian Continental Shelf (NCS). Recently, it became the world’s first digitally enabled FPSO equipped with edge computing technology following a connectivity upgrade.
Upcoming Projects and Production Expansion
A final investment decision (FID) for the Balder Phase VI project was announced a few months ago. This project, together with Balder Phase V, is expected to enhance capacity and sustain high production levels from the Balder area. Kistos has revealed that six new multi-branch subsea production wells are being developed at Balder V, with anticipated production rates and reserves similar to those of the wells in the Balder Future project. Two of the Phase V wells are projected to start production in the fourth quarter of this year, with the remaining wells scheduled for completion by 2026.
Strategic Development Goals
According to Kistos, Balder Phase VI will consist of a single multi-lateral well linked to the FPSO Jotun through the installation of a new subsea template and flowline. This initiative aims to target reserves estimated at approximately 15 million barrels of oil equivalent (mmboe) gross, with operations expected to commence by the end of 2026. Andrew Austin, Executive Chairman of Kistos, remarked, “Alongside our partner Var, we established a clear priority at the beginning of the year to advance the Balder Future development project. We not only achieved our first oil goal by mid-year but also expedited the production ramp-up, reaching peak production significantly ahead of schedule.”
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