The target production start has been moved to the second quarter 2025.

As previously communicated, the revised plan has limited impact on the Company’s 2024 production and no material impact on guided capital costs. The Company’s end-2025 production target of around 400 thousand barrels of oil equivalent per day (kboepd) is not affected by the updated project start-up.  

 A key consideration has been to limit the carryover work into the offshore installation and start-up phase as much as possible. Together with our suppliers we have made every effort to complete the final work on the Jotun FPSO at the Rosenberg yard to enable field installation before the winter weather period. However, despite recent good progress, some onshore completion and commissioning work required prior to sail-away remains. Although achieving first oil by end of the fourth quarter 2024 is no longer possible this has limited impact on 2024 production and our guidance of 280-300 kboepd for the year is maintained, says CEO of Vår Energi, Nick Walker. 

 With all development wells completed and all subsea production systems installed, the plan is now to complete the FPSO vessel fully onshore, enabling first oil within the second quarter next year. As part of the decision not to sail, the cost basis for the project has been updated reflecting a sail-away in the spring of 2025, this represents an additional project cost of around USD 400 million gross pre-tax (NOK ~4.27 billion¹) of which approximately 75% will be incurred in 2025.

The Company’s capital spend guidance for 2024 is revised down from USD 2.7-2.9 billion to around USD 2.6 billion, reflecting other cost reductions and a favourable NOK exchange rate. Vår Energi’s production target for 2025 remains unchanged and the Company is on track to reach around 400 kboepd by end of next year. 

Balder X, will secure production from the Balder Area beyond 2045, unlocking gross proved plus probable (2P) reserves of around 150 million barrels of oil equivalent (mmboe) and with a gross peak production of 80 kboepd².  

 The Jotun FPSO will be an area host, enabling future growth opportunities. Balder Phase V is being progressed, including the drilling of six production wells to utilise the remaining subsea template well slots to capture gross 2P reserves of more than 30 mmboe. Drilling of these wells will commence in the first half of 2025 and be completed in 2026. In addition, the Balder Phase VI project is being matured, to add new subsea facilities and wells, with expected investment decision planned first half of 2025. There remains significant additional resource upside in the area and further exploration drilling and tie-back development phases are being planned. 

 Vår Energi is operator (90%) of the Balder Area with Kistos Energy (Norway) AS as partner (10%).