Balder

Location and Geology

The Balder oil and gas field is located in the North Sea, approximately 165 km west of Haugesund, Norway, and about 190 km northwest of Stavanger. It is situated in blocks 25/10 and 25/11 at a water depth of 125 meters on the Utsira High within the Norwegian Continental Shelf (NCS).

The field produces oil from several separate deposits in sandstone formations of Jurassic, Paleocene, and Eocene ages. The Balder reservoir, located at a depth of about 1,700 meters, produces from the Heimdal and Hermod formations as well as the injected sand complex above them. The nearby Ringhorne field, located 9 km north of the Balder FPSO, produces from the Hugin, Ty, and Hermod formations at a depth of about 1,900 meters.

History and Development

The Balder field was discovered in 1967, with the major part of the field identified during appraisal drilling in 1974. The initial Plan for Development and Operation (PDO) was approved in 1996, and production commenced in September 1999.

The field is developed using a floating production, storage, and offloading vessel (FPSO), with subsea wells tied back to the Balder FPSO. The Ringhorne field is developed with a combined accommodation, drilling, and wellhead facility, also tied back to the Balder FPSO and the Jotun FPSO for processing, crude oil storage, and gas export.

Current Operations and Future Projects

Current Operations

The Balder field is currently operated by Vår Energi, which holds a 90% interest, while Mime Petroleum holds the remaining 10%. Vår Energi is a joint venture between Eni (69.85%) and HitecVision (30.15%).

The field has 12 production wells, three water injection wells, one gas injection well, and a water source well. The FPSO processes and stores crude oil, which is offloaded via shuttle tankers. Excess gas is routed through the Jotun FPSO to the Statpipe gas pipeline.

Balder Future Project

The Balder Future Project, part of the larger Balder X Project, aims to extend the life of the Balder field until 2045. This project involves:

• Drilling 13 new production wells and a new water injection well on the Balder field.
• Upgrading the Jotun FPSO, which was taken ashore in June 2020 for maintenance and upgrades. The vessel is expected to be re-installed between the Ringhorne platform and the Balder FPSO.
• The project is estimated to recover an additional 136 million barrels of oil equivalent (Mboe) from the field and involves an investment of approximately NOK 19.6 billion (around $2.2 billion).

Contractors and Service Providers

Several contractors are involved in the Balder Future Project:

• Rosenberg Worley: Awarded the engineering, procurement, construction, and installation (EPCI) contract to upgrade and modify the Jotun FPSO.
• Baker Hughes and Ocean Installer: Executing the EPCI of the subsea production systems, umbilicals, flowlines, and risers for the Jotun FPSO.
• Seadrill Norway Operations: Received a rig contract for the drilling of the production and water injection wells.
• 4Subsea: Awarded a three-year service contract to monitor the West Phoenix rig and analyze wellhead integrity.

Production and Reserves

The Balder field has estimated recoverable reserves of 171 million barrels of oil and 0.8 billion cubic meters of associated gas. The field produces oil with a specific gravity of 20API, which is highly viscous. The reservoir pressure is 177 bar, and the temperature is 77°C.

As of recent updates, production from the Balder Field had increased following the restoration of production from shut-in wells, although rates were temporarily restricted due to a potential riser integrity issue.

Transport and Export

The oil produced is transported by tankers, while excess gas from Balder and Ringhorne is exported through the Jotun FPSO via the Statpipe system to Kårstø and then to continental Europe.

Decarbonization and Future Plans

Vår Energi has started implementing a decarbonization plan, with a priority on electrifying the Balder Area before 2030. The company also plans to drill several exploration and contingent wells in the North Sea, targeting significant risked resources.