Kristin Kragseth, CEO of operator Vår Energi, said the combination of COVID-19 and low oil prices forced an assessment of the potential consequences on the project. At the same time, the company took precautionary steps in order to maintain the progress plan.
“There is still uncertainty about how the COVID-19 pandemic will affect the project,” he added, “but the goal is to start production in the second half of 2022.”
The NOK19.6-billion ($2.01-billion) Balder Future project will extend the life of the Balder oilfield in Norway’s oldest license, awarded in the mid-1960s, to 2045, and extraction of a further 136 MMboe of reserves.
In addition to upgrading the FPSO, which entered service in 1999, 13 new production wells and one water injection well will be drilled on the field.
Jotun was originally built at the Kværner Rosenberg shipyard in Finland before being transferred to Rosenberg in Stavanger for completion.
Today the vessel was due to enter the Åmøyfjorden to undergo a two-week period of preparatory works prior to its final tow into the Rosenberg Worley yard.
The upgrade will include an overhaul of the turret, pipes, process equipment, hulls, marine systems, living quarters, control and security systems. The vessel should then be re-installed between the Balder FPSO and the Ringhorne platform during summer 2022.
Stavanger-based Baker Hughes and Ocean Installer are working on engineering, procurement, construction, and installation of new subsea systems, umbilicals, risers and transport pipes for connection to the Jotun FPSO.