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OSLO - Vår Energi ASA (OSE:VAR) and partner Kistos Energy Norway AS have reached a final investment decision (FID) for the Balder Phase VI development project in the North Sea, according to a press release statement from Kistos Holdings plc (LON:KIST).
The project will develop approximately 15 million barrels of oil equivalent (mmboe) of gross proved plus probable reserves at a capital expenditure of NOK 2.6 billion (USD 260 million). The development includes one additional multilateral production well, installation of a new subsea template, and a flowline that will be tied into the Jotun floating production storage offloading vessel (FPSO).
Vår Energi, which operates the Balder field with a 90% interest, expects the project to come onstream by the end of 2026. Kistos holds the remaining 10% stake.
The companies report that the project has a break-even price below USD 35 per barrel, an internal rate of return above 35%, and is expected to pay back in less than a year from production start at current prices.
This announcement comes as the Balder area prepares for first production from the Balder Future project, which is expected to increase the area’s peak daily production by 80,000 barrels of oil equivalent per day (boepd), up from the current peak of approximately 30,000 boepd.
The Balder Phase VI development aligns with Vår Energi’s strategy to reach production levels exceeding 400,000 boepd in the fourth quarter of this year and to sustain long-term production through developing early-phase projects.
Vår Energi is also progressing several additional projects in the Balder area, including Balder Next (LON:NXT), which targets additional gross contingent resources of around 55 mmboe.
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