Kistos Holdings (AIM:KIST), the independent energy company with a 10% stake in the Balder field offshore Norway, said on 18 June that operator Vår Energi has taken a final investment decision on the Balder Next New Wells project, comprising seven new wells tied back to the Jotun floating production, storage, and offloading vessel.
The project will develop 86 million barrels of oil equivalent (mmboe) in gross proved plus probable reserves, up from approximately 75 mmboe communicated earlier this year, with Vår Energi citing continued improvement in project definition as the driver of the 11 mmboe uplift.
Economics are disclosed as a breakeven of approximately USD 30 per barrel of oil equivalent and an internal rate of return above 35%, with first production expected in the fourth quarter of 2027.
Vår Energi, which holds the remaining 90% and operates the asset, said the development leverages available capacity on the Jotun FPSO and will support the planned decommissioning of the Balder floating production unit from 2028, with associated reductions in operating costs and emissions.
"This project, comprising seven additional wells, will deliver significant additional volumes at an attractive breakeven cost of approximately USD 30 per boe," said Andrew Austin, Executive Chairman of Kistos.
