Vår Energi is progressing the portfolio of early-phase projects, sanctioning a total of ten development projects this year. These developments form part of the Company's early-phase portfolio of around 30 high quality projects. The projects are adding high value barrels to sustain production of between 350 and 400 thousand barrels of oil equivalent per day (kboepd) towards 2030 and beyond.
The Company has recently sanctioned the Previously Produced Fields in the Greater Ekofisk Area (PPF), Eldfisk North Extension, Mikkel Flow Conditioning Unit (FCU), Johan Castberg Isflak and Increased Oil Recovery (IOR) projects and the first phase of the Balder Next project (1). Final investment decisions on the following projects were reached earlier this year: Balder Phase VI, Fram Sør, Gudrun Low Pressure Project and Snorre Gas Export.
Nick Walker, CEO of Vår Energi, said: 'Sanctioning ten projects this year, up from eight targeted at the start of the year, shows the pace at which we are delivering. We are moving from resources to reserves faster, creating significant value for our shareholders and underpinning our ability to sustain production at 350 to 400 kboepd towards 2030 and beyond. We have delivered transformational growth this year, the Company is de-risked and we have never been in a stronger position. Adding these projects with low-risk, high-returns and short pay-back time, we are strengthening the outlook for delivering long term value'.
In total, the ten sanctioned projects add significant proved plus probable (2P) reserves of around 160 million barrels of oil equivalent (mmboe) net to Vår Energi. The projects demonstrate strong economics, with an average portfolio rate of return of above 30% and breakeven price of around USD 30 per barrel.
[1]The first phase of the Balder Next project consists of the debottlenecking at Jotun FPSO to increase production capacity and drilling of new production wells. The next phase will include the decommissioning of the Balder Floating Production Unit (FPU) and development of additional wells.
Source: Vår Energi
