Vår Energi ASA (OSE: VAR, “Vår Energi”) has taken final investment decision (FID) on the Balder Next New Wells project in the North Sea, progressing the next phase of development in the Balder area and supporting the Company’s long-term production target

“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,” says Torger Rød, COO, Vår Energi.

The project comprises a first phase development of seven new wells tied back to the Jotun FPSO, with expected start-up in the fourth quarter of 2027. The project will develop 86 million barrels of oil equivalent (mmboe) gross in proved plus probable reserves, an increase from around 75 mmboe gross communicated earlier this year, reflecting continued improvement of the project. The project has strong economics, delivering high value, with a breakeven of around USD 30 per boe and an internal rate of return of more than 35 percent. The project is enabled by Vår Energi’s project factory approach, combining standardised solutions, pre-commitments and strategic partnerships to accelerate execution and reduce time to market.

The Balder area is a core contributor to Vår Energi’s production target of delivering above 400 thousand barrels of oil equivalent per day long term. Following the start-up last summer, the Jotun FPSO is enabling efficient tie-back of new wells and continued value creation over time. The Balder Next New Wells project forms part of the next phase of developments in the area and is enabled by existing infrastructure and available capacity. The development also supports the planned consolidation of infrastructure, including decommissioning of the Balder FPU from 2028, reducing operating costs and emissions.

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

About Vår Energi

Vår Energi is a leading independent upstream oil and gas company on the Norwegian Continental Shelf (NCS).