Vår Energi progressing Balder X project

Vår Energi has awarded Aker Solutions the front-end engineering and design contract for the lifetime extension of the Jotun FPSO.

Jotun FPSO
Jotun FPSO

Offshore staff

STAVANGER, NorwayVår Energi has awarded Aker Solutions the front-end engineering and design (FEED) contract for the lifetime extension of the Jotun FPSO.

The main objective of the FEED study is to detail the scope of work required to extend the life of the Jotun FPSO vessel toward 2045 in the North Sea. The contract value is estimated to be more than NOK100 million ($11.5 million).

This is part of the redevelopment of the Balder and Ringhorne fields, the Balder X project. It will involve prolonging the lifetime of the FPSO to 2045 and the Balder FPSO to 2030; and drilling 15 new production wells in the Balder field area and 11 new production wells in the Ringhorne field area.

In addition, other key contracts are planned in the Balder X project, such as engineering procurement construction, and installation for the Jotun FPSO, subsea production system, and subsea umbilical, risers and flowline. The contracts are expected to be tendered and awarded in the first half of 2019.

Total redevelopment investments of the Balder and Ringhorne fields are estimated to NOK20 billion ($2.3 billion), of which NOK15 billion ($1.7 billion) is related to the Balder X project. A revised plan for development and operation for the Balder X project is planned to be submitted in 4Q 2019.

CEO Kristin F. Kragseth said: “This contract marks the first milestone for operated development in Vår Energi. With ambitions to grow, we see major opportunities in Norway, and I am proud that the oldest license area on the NCS, the Balder field, continues to create value and provide job opportunities for future generations.”

The Jotun FPSO will be disconnected from its present location offshore and brought to shore for a scheduled one-year yard-stay. After the yard-stay, the Jotun FPSO will be reinstalled in the Balder field, with planned start-up in 2021. These activities will take place while ordinary production continues at the Balder and Ringhorne fields.

12/20/2018

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