Wedoany.com Report-Jun 27, Var Energi ASA has begun production at the Balder field in the North Sea using the Jotun floating production, storage, and offloading vessel (FPSO). This development extends the operational life of Norway’s first production license, PL001, on the Norwegian Continental Shelf, ensuring output through 2045 and beyond.

Within three to four months after the start of production, Var Energi expects to raise production by approximately 80,000 barrels of oil equivalent per day (boepd) gross.

The Jotun FPSO is expected to increase production by about 80,000 barrels of oil equivalent per day (boepd) gross within three to four months, adding to the existing 30,000 boepd from the Balder floating production unit and Ringhorne facilities. The project features an operating cost of approximately $5 per barrel and estimated recoverable reserves of 150 million barrels of oil equivalent. All 14 production wells are complete and will be phased into operation to achieve peak output. Combined with the upcoming Balder Phase V project, the initiative anticipates a two-year payback period.

The Jotun FPSO serves as a regional hub, enabling further production through infill drilling, exploration, and tie-back developments with rapid market delivery. “Var Energi is set for transformative growth in 2025. Together with the recent start-ups of Halten East and Johan Castberg, this marks a key milestone in reaching our production target of more than 400,000 boepd in the fourth quarter of this year,” said Var Energi CEO Nick Walker. “Furthermore, with infrastructure and facilities designed to extend production beyond 2045, the start-up of the Jotun FPSO opens up wide potential for continued value creation from the area.”

Var Energi operates the Balder field with a 90 percent stake, partnered with Kistos Energy Norway AS, which holds 10 percent.

In a related development, the Johan Castberg field in the Barents Sea, operated by Equinor, has reached its full production capacity after completing 17 wells. The field contributes 66,000 barrels of oil per day net to Var Energi, supporting the company’s goal of exceeding 400,000 boepd by Q4 2025. “We are pleased to see Johan Castberg producing at stable plateau levels, after a safe and successful start-up by Equinor in March this year,” said Var Energi COO Torger Rod. The field, with a gross capacity of 220,000 barrels per day and recoverable reserves of 450 to 650 million barrels, is expected to produce for over 30 years with a payback period of under two years.

Equinor Energy AS operates Johan Castberg with a 46.3 percent stake, alongside Var Energi (30 percent) and Petoro AS (23.7 percent). Drilling of the field’s 30 development wells will continue through 2026.