REG - Kistos Holdings PLC - Balder Phase VI FID

Kistos HoldingsAnnouncement

18/06/2025 07:02

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RNS Number : 3439N  Kistos Holdings PLC  18 June 2025

18 June 2025

 

 

Kistos Holdings plc

 

("Kistos" or "the Company")

 

 

Balder Phase VI FID

 

 

Kistos (LON: KIST), an independent energy company focused on generating value
across the upstream and midstream markets, notes the announcement made today
by Vår Energi, the operator of the Balder Area, regarding a Final Investment
Decision ("FID") for Phase VI of the Balder Area development taken by Vår
Energi and the Company.

 

This announcement comes ahead of the expected imminent first production from
the Balder Future project. Once online, the project is expected to increase
the area's peak daily production by 80,000 barrels of oil equivalent produced
per day (boepd) (gross), a significant increase on the area's current peak
daily production of circa 30,000 boepd (gross).

 

 

Full Vår Energi press release below:

 

Sandnes, Norway, 18 June 2025: Vår Energi ASA (OSE: VAR, the "Company") and
licence partner Kistos Energy Norway AS have reached the final investment
decision (FID) for the Balder Phase VI project in the Balder area. The
fast-track development will be a key contributor to sustaining long term,
high-value production through the newly installed Jotun floating production
storage offloading vessel (FPSO).

 

COO of Vår Energi, Torger Rød, said:

 

"The Balder area in the North Sea is one of Vår Energi's core hubs and
constitutes significant future resource potential. With the Jotun FPSO now
installed as the new area host, we will continue to unlock additional high
value barrels from the Balder area through several phases of new developments
and field optimisations. This includes Balder phase V, which will come on
stream later this year. And with the FID for Balder Phase VI we are taking yet
another important step to sustain production from the area through short time
to market developments."

 

Vår Energi is on track to reach production levels of more than 400 thousand
barrels of oil equivalent per day (kboepd) in fourth quarter this year and the
Company aims to organically sustain production long term through developing a
highly attractive portfolio of around 30 early phase projects. Balder Phase VI
is one of around eight project sanctions expected this year.

 

The Balder Phase VI project will develop around 15 million barrels of oil
equivalent (mmboe) of gross proved plus probable (2P) reserves for a capital
spend of NOK 2.6 billion (USD 260 million) gross. The project has strong
economics, with a break-even well below 35 USD per barrel, IRR above 35% and
will pay back in less than a year from start of production at current prices.
The project consists of one additional multilateral production well,
installation of a new subsea template, and a flowline that will be tied into
the Jotun FPSO. The sanctioning of Balder Phase VI aligns with Vår Energi's
strategy of maximising value in core hub areas by utilising existing capacity
and infrastructure and demonstrates how the upgraded Jotun FPSO will
contribute to continued value creation in the area. Balder Phase VI is
expected to come onstream by the end of 2026.

 

In addition, in the Balder area several additional early phase projects are
also being progressed, including Balder Next. The Balder Next project is
targeting additional gross contingent resources of around 55 mmboe. The
project consists of taking the Balder Floating Production Unit (FPU) to shore
for decommissioning, planned in 2028. Selected wells producing though Balder
FPU will be transferred to the Jotun FPSO. In addition, production will be
accelerated as part of the Jotun FPSO debottlenecking project to increase
production capacity on the FPSO, as well as developing new production wells.
The decommissioning of Balder FPU is expected to reduce operating costs by
approximately USD 130 million gross per annum and reduce CO(2) emissions by
around 80,000 tonnes gross per year.

 

With Jotun FPSO serving as the new area host at the Balder field, production
is expected to remain at 70-80 kboepd gross towards 2030.

 

"While moving projects forward at pace, a major portion of our portfolio and
capital remains uncommitted, allowing for a high degree of flexibility. This
provides resilience and robustness to navigate through the cycles, whilst we
continue to move high value projects forward at the right time", Mr Rød
concluded.

 

Vår Energi is operator (90%) of the Balder field, with Kistos Energy Norway
AS as partner (10%).

 

- ENDS -

 

 

Contacts

 

 Kistos Holdings plc                           via Hawthorn Advisors

 Andrew Austin

 Panmure Liberum (NOMAD, Joint Broker)         Tel: 0207 886 2500

 James Sinclair-Ford / Mark Murphy

 Berenberg (Joint Broker)                      Tel: 0203 207 7800

 Matthew Armitt / Ciaran Walsh

 Hawthorn Advisors (Public Relations Advisor)  Tel: 0203 745 4960

 Henry Lerwill / Simon Woods

 Camarco (Public Relations Advisor)            Tel: 0203 757 4983

 Billy Clegg

 

 

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