Norwegian oil and gas producer Vår Energi has commenced production through the Jotun Floating Production Storage and Offloading (FPSO) vessel, marking a major milestone in revitalizing the Balder field in the North Sea. The project is expected to significantly boost output and extend the field’s operational life beyond 2045.

Production is anticipated to ramp up to approximately 80,000 barrels of oil equivalent per day within the first three to four months. This development is part of Vår Energi’s long-term strategy to drive high-value growth and secure a more sustainable future for Norway’s offshore energy sector.

Efficient and Scalable Project Execution

The Jotun FPSO, which has been refurbished and redeployed, offers a low operating cost of around $5 per barrel. Estimated gross proved plus probable reserves from the redevelopment stand at 150 million barrels of oil equivalent. All 14 production wells are complete and will be brought online progressively to achieve peak output during the ramp-up period.

With a projected payback time of just two years, the FPSO is positioned as a strategic area hub, enabling further production growth through infill drilling, exploration, and tie-back opportunities.

Leadership Commentary and Strategic Goals

“This is a key milestone for Vår Energi,” said CEO Nick Walker. “The Jotun FPSO restart supports our transformative growth journey in 2025 and plays a central role in reaching our goal of more than 400,000 barrels of oil equivalent per day in the fourth quarter.”

Walker credited the success to the teams involved and the continued support from Norwegian authorities, emphasizing the company's focus on safety, efficiency, and value creation.

Vår Energi’s Broader Vision

Headquartered near Stavanger, Vår Energi is one of the leading independent oil and gas companies operating on the Norwegian Continental Shelf. With approximately 1,400 employees and equity stakes in 42 producing fields, the company aims to be the safest offshore operator in the region. It has also committed to achieving carbon neutrality in net equity operational emissions by 2030.

The Balder field redevelopment underscores Vår Energi’s commitment to extending asset life cycles while contributing to a reliable energy supply for Europe.

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