Vår Energi moves Jotun FPSO for Balder X Project production start

The Jotun floating production, storage, and offloading (FPSO) vessel has officially begun its tow-out journey from the Worley Rosenberg yard in Stavanger, marking a major milestone in Vår Energi‘s Balder X project. The FPSO is now en route to the Balder field, a historic offshore oil asset on the Norwegian Continental Shelf (NCS), where it will undergo installation and commissioning ahead of first oil production, scheduled for the end of Q2 2025.

This development is a critical step in Vår Energi’s strategy to ramp up oil production and extend the lifespan of the Balder field until at least 2045. Once the Jotun FPSO comes online, output from the Balder field is projected to nearly quadruple, reaching an estimated 80,000 barrels of oil equivalent per day (kboepd) at peak production.

How Does The Jotun FPSO Support The Balder X Project?

The Balder X project represents one of the most ambitious redevelopment initiatives on the NCS, aimed at revitalizing the Balder and Ringhorne fields through modernization, new drilling campaigns, and infrastructure upgrades. Central to this strategy is the Jotun FPSO, which has undergone extensive modifications to improve efficiency, safety, and environmental performance.

Historically, FPSOs have played a crucial role in offshore oil production, particularly in deepwater and mature fields where constructing permanent platforms is either impractical or uneconomical. The Jotun FPSO, originally built in the late 1990s, has been upgraded and repurposed to serve as a key production hub for Balder X and future expansion projects in the region.

By reusing and modernizing existing assets, Vår Energi aims to reduce development costs and minimize the environmental footprint of the project. The company estimates that these efforts could cut CO2 emissions by approximately 100,000 tonnes per year, in line with broader industry goals for reducing offshore carbon intensity.

What Are The Key Components Of The Balder X Development?

The Balder X project is a multi-phase redevelopment effort designed to maximize hydrocarbon recovery while extending the productive life of the Balder field. The initiative includes upgrading the Jotun FPSO to enhance processing capabilities and accommodate additional production. It also involves extending the Balder floating production unit (FPU) to support ongoing operations, along with drilling 14 new production wells and one water injection well to increase oil recovery. Additionally, the project advances the Balder Phase V development, which will contribute to short-term production growth.

The Balder X project is expected to unlock 150 million barrels of oil equivalent (mmboe) in proved plus probable (2P) reserves, reinforcing its importance to Norwegian offshore energy security.

How Will The King And Prince Discoveries Impact Future Production?

Beyond the immediate production gains from Balder X, Vår Energi is actively assessing additional reserves in the area. The King and Prince discoveries, estimated to contain between 60 million and 135 million barrels of oil, are currently being evaluated for potential tie-ins to the Jotun FPSO.

The ability to tie new fields into existing FPSO infrastructure is a key advantage for offshore operators, as it allows for rapid development without the need for new standalone production facilities. If approved, these tie-backs could further extend production at Balder beyond the 2045 target, ensuring a steady flow of resources to the FPSO for decades to come.

What Are The Next Steps For The Jotun FPSO Before Production Begins?

The tow-out process for the Jotun FPSO follows a detailed sequence of events to ensure a safe and efficient deployment to the Balder field. Before reaching its final offshore location, the vessel will first undergo inclination tests at the quayside, followed by inshore sea trials and anchor installation work at Åmøyfjorden, near Stavanger.

Once these steps are completed, the FPSO will be towed to the Balder field, where it will be installed and connected to subsea production infrastructure. It will then undergo final commissioning and system integration before beginning oil production, with an expected three- to four-month ramp-up period to peak output.

With all 14 production wells already drilled, Vår Energi is confident that it remains on track for first oil in late Q2 2025, ensuring continued supply growth for the company.

How Does Balder X Fit Into Vår Energi’s Growth Strategy?

Vår Energi has positioned Balder X as a cornerstone of its long-term expansion strategy, with the project set to significantly contribute to the company’s target of surpassing 400,000 kboepd by Q4 2025. The company is also advancing plans for Balder Phase VI, which is expected to receive sanctioning in 2025, adding an estimated 45-50 mmboe of additional reserves.

In the Greater Balder Area, Vår Energi is progressing several new early-phase projects, including Ringhorne North and additional Balder future phases, which collectively hold over 70 mmboe in contingent resources. The company is also planning further exploration drilling to identify new hydrocarbon accumulations in the region.

What Are The Long-Term Sustainability Initiatives For Balder Field?

As part of its broader sustainability strategy, Vår Energi is evaluating options for electrifying the Balder/Grane production area, which could lower emissions and reduce unit production costs. Additionally, the company is planning for the eventual decommissioning of the Balder FPU, which will be transported to shore for dismantling once production declines.

The reuse of FPSO infrastructure and reduced reliance on new fixed platforms align with Norwegian regulatory initiatives aimed at improving offshore energy efficiency. By implementing these measures, Vår Energi is balancing production growth with responsible environmental management, ensuring that Balder X remains a viable and sustainable oil project for decades to come.

The departure of the Jotun FPSO for the Balder field marks a transformative moment for Vår Energi and the Norwegian offshore oil sector. With a well-defined strategy for production growth, sustainability initiatives, and future resource expansion, the Balder X project is set to deliver long-term value for both the company and the industry. As first oil approaches in mid-2025, the project stands as a model for modern field redevelopment, showcasing how legacy offshore assets can be revitalized through innovation and strategic investment.