Jotun FPSO refurbishment took four years and cost a lot, but is finally back on stream
Vaar Energi has restarted production through the refurbished Jotun floating production, storage and offloading vessel offshore Norway, bringing to an end a difficult period of cost overruns and schedule delays.
By bringing the Jotun FPSO on stream, production is expected, within three to four months after start-up, to increase by about 80,000 barrels of oil equivalent per day gross, on top of the current production of 30,000 boepd gross through the Balder floating production unit and Ringhorne facilities, Vaar said today.
The final cost for the FPSO upgrade was more than $4 billion and the job took more than four years.
However, it is expected to anchor long-term production from the Balder area for many years to come. Expansion phases V and VI have already been sanctioned, and another expansion phase is planned.
Vaar is the operator of the Balder area with a 90% interest with Kistos Energy (Norway) its 10% partner.
Vaar chief executive Nick Walker thanked the project organisation, the suppliers, employees and its partner Kistos “for the strong dedication and collaborative efforts required in successfully completing this complex project. Also, the support by the Norwegian authorities has been fundamental, and much appreciated”.
Andrew Austin, executive chairman of Kistos, said: “First oil from the Balder Future project is a significant milestone for Kistos. Working alongside our partner in the Balder Area, this provides the foundation for further incremental value accretion from our interest in Norway.”
