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.
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 35 per barrel.
Our exploration strategy is focused on identifying additional in and 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.
Unlocking value through a proven hub strategy
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 2023.
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.
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.
