Vår Acquires New Operated Stakes In Norway’s Balder Area

var-acquires-new-operated-stakes-in-norway’s-balder-area

© Point Resources.The Jotun A field with Jotun B in the background.

The Jotun A field with Jotun B in the background.

Vår Energi has agreed a series of deals to increase its acreage in the Balder area, with a view to taking over operatorship of the licences.

The Norway-focused operator said Monday that it had acquired 30% ownership in production licenses (PL) 820S and PL 820 SB, north of the Balder field, from Lime Petroleum, Pandion Energy and Lundin Energy (now Aker BP).

Vår Energi is now proposed as new operator of the licences, with the transaction pending government approval.

The Balder field to the south lies in production license PL 001 – the first license ever granted on the Norwegian continental shelf – and is 90% owned and operated by Vår, alongside Mime Petroleum (10%).

The area is undergoing significant overhaul work, including upgrading of the Balder floating production unit and new drilling at the nearby Ringhorne III and IV sites.

In addition, the “Balder Future” project will see Var upgrade the Jotun FPSO to the north, and drill 14 new production wells and one water injection well, with a view to extending production life of the Balder hub out to 2045.

Vår has said it is also considering drilling new exploration wells in the area.

Earlier this year, the company acquired PL 917 and PL 917B to the west of Balder from Lundin Energy in an equity swap.

The deal saw Vår gain operatorship and a 20% additional equity share in return for reduced equity in other liences – PL 956 and PL 985.

“We have a long-term, hub-oriented growth strategy in the North Sea, and these acquisitions add new opportunities to an already robust portfolio. The acquired licenses will be worked as part of further development of the greater Balder area,” said the company’s VP field development and projects, Bjørn Thore Ribesen.

“We are looking forward to developing new and more sustainable opportunities for future value creation from these licenses together with our partners.”

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