Kistos Holdings plc said that production has been deferred from the end of 2024 to the second quarter of 2025 at the Balder X development project in the Norwegian North Sea.
GROWTH
The company acquired a 10% interest in Balder, comprising the Balder and Ringhorne fields, and a 7.4% stake in the Ringhorne East unit via its purchase of Mime Petroleum A.S., completed in May 2023.
Operator and 90% owner Vår Energi needs to complete remaining onshore and commissioning work on the Jotun floating production, storage and offloading unit before sail-away.
Kistos expects “no adverse impact” from the delay to production, adding that it was protected from such a delay and cost increase with the $45 million hybrid bond.
“This $45m is structured such that if 500,000 bbls (gross) isn’t lifted from the Jotun FPSO before the 31 May 2025 then the full $45 million is not payable,” added the company.
“It is likely that the effect of the delay on capex will be significantly less than the positive effects of the hybrid bond not being paid in full.”
Balder X is expected to produce from the Balder Area beyond 2045, unlocking gross proved plus probable (2P) reserves of around 150 mmboe (gross) and peak output of about 90 kboepd (gross).
As an area host, the Jotun FPSO will enable future growth opportunities.
Vår added that Balder phase V was progressing, including the drilling of six production wells to utilise the remaining subsea template well slots to capture gross 2P reserves of over 30 mmboe.
Drilling will begin during the first half of 2025 and complete in 2026.
The Balder phase VI project is also being matured, to add new subsea facilities and wells. An investment decision expected in H1 2025.
The company said that “significant additional resource upside” remained in the area and further exploration drilling and tie-back development phases are being planned.