Vår Energi has set an ambitious target for production growth ambition of above 400 000 barrels per day by end-2025. This is supported by sanctioned development projects, well into execution with committed investments.
Major sanctioned developments include Balder X, Breidablikk and Johan Castberg. Our development projects generally exhibit high reserve quantities and low break-even prices.
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 of an average portfolio break-even of around USD 30 per barrel.
Our exploration strategy is focused on identifying additional in and near-field drilling prospects at established assets and core hubs.
Vår Energi has a large resource base of unsanctioned attractive projects in the development pipeline which are being matured toward an investment decision. We have a disciplined approach of maturing the projects, with clear return and break-even requirements, sanctioning projects when the timing is right, to ensure high-margin barrels to the market and sustained production over time.
The majority of exploration drilling is executed near-field in hub areas, delivering infrastructure-led wells adding value to the existing asset base. Vår Energi aims to apply a factory-based approach to standardise and simplify subsea tie-ins. The ambition is to deliver an average break-even of around 30 dollar per barrel across the project portfolio.
The future developments will be matured and executed with the long-term strategic supplier partnerships, with extensive expertise and proven track records. Vår Energi has secured strong partners with competence, capacity and priority.
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.
Balder Future is one of the largest projects on the Norwegian Continental Shelf (NCS), and Vår Energi´s key to future growth and production.
The Balder/Grane Area, which accounted for 13% of the production for 2022 and 312 mmboe in 2P reserves at the end of the year, is a core hub with expected long-term production upside. At Balder and Ringhorne, Vår Energi is operator and holds 90% working interest in Balder and 70% working interest in Ringhorne East.
Other key assets in the Balder area are Grane and Breidablikk. Grane bottom fixed steel jacket. Vår Energi holds a ~28.3% working interest in Grane. The Breidablikk field, which is located around 10 km northeast of the Grane platform, is currently being developed and has a projected production start in the first quarter of 2024. The field development concept includes four subsea templates linked to the Grane platform by pipeline. Vår Energi holds a 34.4% working interest in Breidablikk.
Vår Energi’s hub strategy is to cultivate a strong portfolio focused on four core hubs with significant production, and exploration potential.
The robust and diverse portfolio provides insights into assets and licenses across the entire NCS, identifying and realising opportunities for value capture.
As part of the hub strategy, we identify 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.
Our core assets are located around four strategic hubs: the Balder/Grane Area, the Barents Sea Area, the North Sea and the Norwegian Sea.
No single area accounted for more than 30% of the total 2P reserves at the end of 2022.
Vår Energi is oil and gas. But we are also an energy provider for future generations. This is the foundation for every strategic decision we make.
There are many paths leading to the objective. A more climate- and environmentally friendly oil extraction is achieved through our own measures and through collaboration with supplier- and value chains.
Sustainability Manager, Ivar Kvadsheim explains.
We deliver stable production of energy to millions of Europeans. At the same time, we have committed to ambitious climate targets.
The challenges are great. As are our ambitions. Working to supply energy supply has perhaps never been more important and meaningful than now.
