Vår Energi ASA has postponed the manufacturing begin date of its Balder X improvement mission within the North Sea to the second quarter of 2025, as an alternative of the fourth quarter of this 12 months.
“Along with our suppliers we have now made each effort to finish the ultimate work on the Jotun FPSO [floating production, storage and offloading unit] on the Rosenberg yard to allow discipline set up earlier than the winter climate interval,” Var Energi stated in a press release.
“Nonetheless, regardless of current good progress, some onshore completion and commissioning work required previous to sail-away stays,” it continued.
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The postponement has a “restricted impression” on its 2024 manufacturing and no materials impression on guided capital prices, the corporate stated. Var Energi’s steering of 280,000 to 300,000 barrels of oil equal per day (boepd) might be maintained, and the manufacturing goal of 400,000 on the finish of 2025 is unaffected, it added.
With all improvement wells accomplished and all subsea manufacturing techniques put in, the plan is now to finish the FPSO vessel absolutely onshore, enabling first oil manufacturing within the second quarter of subsequent 12 months. The choice to sail the FPSO in 2025 represents a further mission price of round $400 million gross pre-tax, of which 75 % might be incurred in 2025, Var Energi famous.
The corporate’s capital spending steering for 2024 has been revised down from $2.7 billion-$2.9 billion to round $2.6 billion, reflecting different price reductions and a positive NOK trade price, based on the discharge.
Balder X will safe manufacturing from the Balder Space past 2045, unlocking gross proved plus possible (2P) reserves of round 150 million barrels of oil equal (MMboe) and with gross peak manufacturing of 80,000 boepd.
The Jotun FPSO might be an space host, enabling future development alternatives. Balder Part V is being progressed, together with the drilling of six manufacturing wells to make the most of the remaining subsea template nicely slots to seize gross 2P reserves of greater than 30 MMboe.
Drilling of the wells will start within the first half of 2025 and end in 2026. Additional, the Balder Part VI mission is being matured, so as to add new subsea services and wells, with anticipated funding choices deliberate within the first half of 2025. There stays important extra useful resource upside within the space and additional exploration drilling and tie-back improvement phases are being deliberate, Var Energi stated.
In line with the corporate’s web site, the Balder X mission permits additional improvement within the Balder and Ringhorne space and consists of two sub-projects. The Balder Future mission consists of the refurbishment and relocation of Jotun FPSO from the Jotun discipline to the Balder space to accommodate tie-ins of 14 new manufacturing wells and one new water injection nicely, with future growth capability to accommodate tie-ins within the space. The mission will prolong the technical lifetime of the Jotun FPSO past 2045.
Ringhorne Part IV is a continuation of the Ringhorne platform drilling actions, following the Ringhorne Part III drilling marketing campaign and the drilling of 5 platform manufacturing wells.
Vår Energi is the operator of the Balder Space with a 90 % stake, with Kistos Power (Norway) AS holding 10 %.
To contact the writer, e mail rocky.teodoro@rigzone.com
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