Partners in the Balder field, Vår Energi and Kistos Energy Norway, have made a final investment decision on the Balder Next New Wells project in the Norwegian North Sea, approving seven new wells tied back to the Jotun FPSO.
The first phase will connect the seven wells to the Jotun FPSO, with production expected to start in the fourth quarter of 2027.
The development is expected to recover 86 million barrels of oil equivalent (mmboe) in gross proved and probable reserves, compared with an earlier estimate of about 75 mmboe.
Vår Energi operates the Balder field with a 90% interest, while Kistos Energy Norway holds the remaining 10%.
Torger Rød, Chief Operating Officer of Vår Energi, said the project supports production growth, long-term value creation and further resource development in the Balder area. He also said the new wells will help sustain output from the Jotun FPSO over time.
According to Vår Energi, the project has an expected breakeven price of around $30 per barrel of oil equivalent and an internal rate of return above 35%.
The Jotun FPSO, which started production in 2025, has become central to the Balder area’s development. Its processing capacity enables new tieback projects and supports further recovery from the field.
The project is part of a wider infrastructure plan for the Balder area, including the planned decommissioning of the Balder floating production unit from 2028. Consolidating facilities is expected to reduce operating costs and emissions.
