Vår Energi awards SURF contract for Balder satellite wells

The fast-track EPCI contract was awarded under the company’s partnership agreement with Vår Energi, and will see Ocean Installer play a key role in a six-well field expansion project tied back to the Jotun floating production, storage and offloading (FPSO) platform. The contract is among the largest awards in Ocean Installer’s history.

The project is part of Vår Energi’s Balder area hub development strategy. First oil from the Balder Next New Wells extension is due to be produced in 2027 with project completion in 2028.

Vår Energi took a final investment decision for the Balder Next New Wells project earlier this month, progressing the next phase of development in the Balder area and supporting the company’s long-term production target. The project will develop 86 million barrels of oil equivalent (mmboe) gross in proved plus probable reserves and has strong economics.

The Balder area is a core contributor to Vår Energi’s production target of delivering above 400,000 barrels of oil equivalent per day long term. Following start-up in 2025, the Jotun FPSO is enabling efficient tie-back of new wells. The Balder Next New Wells project forms part of the next phase of developments in the area and is enabled by existing infrastructure and available capacity. The development also supports the planned consolidation of infrastructure, including decommissioning of the Balder FPU from 2028, reducing operating costs and emissions.

Ocean Installer will execute all subsea umbilicals, risers and flowlines installation activity, in addition to a previously announced EPC award for flexible flowlines and risers. 

Moreld chief executive Geir Austigard said, “Vår Energi has been a key customer for the Moreld group for many years. This project demonstrates Vår Energi’s commitment to their hub-based development strategy in the North Sea centred around the Jotun FPSO. “We are happy that Ocean Installer will play a key role delivering the next phase of that strategy.”

Ocean Installer chief executive Kevin Murphy said, “This award is another important milestone in the long-term partnership we have with Vår Energi. It is a natural continuation of the collaboration we established with the Balder Future project and the ongoing Balder Phase VI project.”

The contract is the third awarded under the terms of a partnership established between Vår Energi and Ocean Installer in June 2022.

Execution will be carried out in close cooperation with another members of the partnership, including OneSubsea, who are responsible for the for the subsea production system.