Vår Energi has made a final investment decision (FID) for the Balder Next New Wells project in the Norwegian North Sea, marking the next phase of development in the Balder area.
The project involves the first phase of drilling seven new wells, which will be connected to the Jotun floating production storage and offloading vessel (FPSO).
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Start-up is anticipated in the fourth quarter of 2027.
Vår Energi is the operator of the Balder field with a 90% share, while Kistos Energy Norway holds the remaining 10%.
According to Vår Energi, the Balder Next New Wells project aims to produce 86 million barrels of oil equivalent (mboe) gross in proved plus probable (2P) reserves. This marks an increase from the previously communicated estimate of approximately 75mboe gross.
Vår Energi reported that the project is expected to be economically favourable. The company cited a breakeven price of around $30 per barrel of oil equivalent and an internal rate of return exceeding 35%.
The development is supported by a standardised project execution method, intended to accelerate progress and shorten the time to market, facilitated by partnerships and pre-commitments.
Vår Energi COO Torger Rød said: “This project demonstrates our ability to mature and execute a portfolio of high-quality developments, excellent resource management, supporting production growth and long-term value creation.
“The Balder area is a key hub in our portfolio, and the Balder Next New Wells project will contribute to sustaining production from the Jotun FPSO and unlocking more resources over time.”
Vår Energi described the Balder area as central to its long-term target of producing more than 400,000 barrels of oil equivalent per day.
The start-up of the Jotun FPSO in June 2025 allows for efficient connection of the new wells and continued use of existing infrastructure, the company said.
The new wells development also aligns with plans to consolidate infrastructure in the region. This includes the anticipated decommissioning of the Balder Floating Production Unit from 2028, with the aim of lowering both operating costs and emissions.
In February 2026, Vår Energi and Kistos Energy completed drilling at the 25/8-C-23 D well, known as the Prince Updip prospect, in the Balder area.
