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De-risked project portfolio driving production growth

Vår Energi’s development pipeline and exploration track record has positioned the company for growth in the coming years. Major sanctioned developments include Balder X and Johan Castberg 

offshore worker Marthe on board Gjøa platform

The company’s development projects generally exhibit high reserve quantities and low break-even prices. The company’s production target by the end of 2025 is supported by eight sanctioned development projects, well into execution with committed investments.

In addition, there is a number of opportunities within Vår Energi’s existing production base to add reserves and extend field life through incremental investments in infill drilling and well intervention programs, facility modifications, subsea satellite developments and near-field exploration.  

A significant part of Vår Energi’s capital expenditure program is targeted at future subsea tie-back projects, which are typically lower-risk with relatively small-scale capital requirements and significant potential for financial returns.

Vår Energi ensures efficiency in growth plans and capital expenditures by taking a disciplined approach to field development, with the ambition to achieve project break-evens of around USD 35 per barrel. The company’s exploration strategy is focused on identifying additional near-field drilling prospects at established assets and core hubs. 

Stepping up activities

Vår Energi is stepping up the pace of activity to realize the value upside in the portfolio. The company is maturing over 20 early-phase projects with net resources of around 400 million barrels. These are all tie-back developments – close to existing infrastructure – and with short time-to-market.

In 2024, Vår Energi will be involved in more than 100 wells – both development and exploration. This is a huge number in an offshore context. Capital discipline is key, and we’re focused on projects that are value-accretive, with breakevens of around USD 35 per barrel and rates of return over 25%.

Also, to realise the value of our significant exploration position, Vår Energi is doubling the pace of drilling compared with last year, and has around 60 wells planned over the next four years.

Map of NCS with VE hub areas

Unlocking value through a proven hub strategy

Vår Energi’s hub strategy is to cultivate a strong portfolio with significant production and exploration potential. The robust and diverse portfolio provides insights into assets and licenses across the entire NCS, identifying and realising value capture opportunities.

As part of Vår Energi’s hub strategy, the company identifies strategic focus areas that provide a framework for evaluating exploration and development opportunities, maximising the use of resources and optimising value creation throughout Vår Energi’s portfolio.

The company’s core assets are located around four strategic hubs: the Barents Sea, the Norwegian Sea, the Balder/Grane area, and the North Sea, with a total of 47 producing fields.

At the end of 2023, no single area accounted for more than 30% of the total 2P reserves and no single field accounted for more than 14% of the total production. 

More to come from PL 001 – The Balder field

The Balder X project is enabling further development in the Balder and Ringhorne area and consists of two sub-projects: the Balder Future Project and Ringhorne Phase IV.

The Balder Future project consists of the refurbishment and relocation of Jotun FPSO from the Jotun field to the Balder area to accommodate tie-ins of 14 new production wells and one new water injection well, with future expansion capacity to accommodate for tie-ins in the area. The project will extend the technical lifetime of the Jotun FPSO beyond 2045. First oil from the Balder Future project is planned for the third quarter of 2024.

Ringhorne Phase IV is a continuation of the Ringhorne platform drilling activities, following the Ringhorne Phase III drilling campaign and the drilling of five platform production wells.

Ansatte som sitter rundt et bord og jobber

All eyes on us!

Balder Future is one of the largest projects on the Norwegian Continental Shelf (NCS), and Vår Energi´s key to future growth and production.

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