en.Wedoany.com Reported - Vår Energi has made a final investment decision for the Balder Next new well project in the Norwegian North Sea, marking a new phase in the Balder area development. The project involves drilling seven new wells in the first phase, which will be tied back to the Jotun floating production, storage, and offloading (FPSO) vessel, with production expected to begin in the fourth quarter of 2027.

Vår Energi holds a 90% interest in the Balder field and serves as operator, while Kistos Energy Norway holds the remaining 10%. According to Vår Energi, the Balder Next new well project aims to develop proven plus probable (2P) reserves of 86 million barrels of oil equivalent, an increase from the previously reported approximately 75 million barrels of oil equivalent.

Vår Energi reports that the project is expected to be economically viable, with a breakeven price of approximately $30 per barrel of oil equivalent and an internal rate of return exceeding 35%. The development adopts a standardized project execution approach aimed at accelerating progress and reducing time to market, supported by collaboration and pre-commitments.

Torger Rød, Chief Operating Officer of Vår Energi, stated that the project demonstrates the company's capability in maturing and executing a high-quality development project portfolio, with excellent resource management helping to support production growth and long-term value creation. The Balder area is a key hub in the company's portfolio, and the Balder Next new well project will help sustain production from the Jotun FPSO and unlock additional resources over time.

Vår Energi describes the Balder area as central to achieving its long-term target of producing over 400,000 barrels of oil equivalent per day. The company stated that the Jotun FPSO, which commenced production in June 2025, can efficiently tie in new wells and continue to utilize existing infrastructure. The new well development aligns with plans to integrate the area's infrastructure, including the expected decommissioning of the Balder floating production unit from 2028, aimed at reducing operating costs and emissions.

In February 2026, Vår Energi and Kistos Energy completed drilling operations on well 25/8-C-23 D in the Balder area, known as the Prince Updip prospect.

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