Kistos (LSE:KIST) is poised to increase its exposure to future North Sea production after partner Vår Energi approved the next phase of development at the Balder field area offshore Norway.
A final investment decision has been taken on the Balder Next New Wells project, which will involve the drilling of seven additional production wells tied back to the Jotun floating production, storage and offloading vessel (FPSO).
Reserve Base Expanded
The latest development programme is expected to unlock additional reserves within the Balder area, with gross proved and probable reserves increasing to approximately 86 million barrels of oil equivalent from around 75 million barrels previously.
The expansion is designed to enhance recovery from the field while extending the productive life of existing infrastructure in one of Norway’s established offshore producing regions.
For Kistos, which holds an interest in the asset through its Norwegian portfolio, the project represents an opportunity to benefit from increased future production volumes and reserve growth.
First Production Expected in 2027
The new wells are scheduled to come online in the fourth quarter of 2027.
By utilising the existing Jotun FPSO and associated infrastructure, the project is expected to be developed efficiently while minimising additional capital requirements compared with a standalone development.
Management highlighted a projected breakeven cost of approximately $30 per barrel of oil equivalent, supporting the project’s economic attractiveness even in lower commodity price environments.
Supporting Long-Term Production Growth
The Balder expansion forms part of broader efforts to sustain production from the area and maximise value from existing offshore infrastructure.
The development is also expected to contribute to lower operating costs and reduced emissions intensity over time through the continued use of established facilities and operational efficiencies.
Kistos has identified Norway as a key region for future growth, and the latest investment decision further reinforces the strategic importance of its interests on the Norwegian Continental Shelf.
Strengthening Partnership with Vår Energi
The project also highlights Kistos’ ongoing relationship with Vår Energi, one of Norway’s leading offshore operators.
Through partnerships with experienced operators, Kistos aims to participate in the development of producing assets while maintaining exposure to reserve growth and operational upside across its portfolio.
Management believes the Balder Next programme will support long-term value creation and strengthen the company’s position within one of Europe’s most significant offshore energy markets.
More about Kistos
Kistos Holdings plc is a London-listed independent energy company focused on acquiring, developing and optimising oil and gas assets. The company has operations across several European energy markets, with a significant presence on the Norwegian Continental Shelf. Kistos pursues growth through operational improvements, reserve development and strategic acquisitions designed to enhance long-term shareholder value.
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