Kistos Announces Final Investment Decision for Balder Phase VI Project
Why we think this is very good
The RNS announcement provides details on Kistos' Balder Phase VI project, which has strong economics and a clear path to production. The project is expected to significantly increase production in the Balder area, and there are no major concerns identified. Overall, this is a positive development for the company.
Key Points
- Kistos and operator Vår Energi have reached a Final Investment Decision (FID) for the Balder Phase VI project
- The project will develop around 15 million barrels of oil equivalent (mmboe) of gross proved plus probable (2P) reserves
- The project has strong economics, with a break-even below $35 per barrel, IRR above 35%, and a payback period of less than a year from start of production at current prices
- The project consists of one additional multilateral production well, a new subsea template, and a flowline tied into the Jotun FPSO
- Balder Phase VI is expected to come onstream by the end of 2026
- The upcoming Balder Future project is expected to increase the area's peak daily production by 80,000 barrels of oil equivalent per day (boepd) gross
Summary
Kistos Holdings Plc (LON: KIST) has announced that it and operator Vår Energi have reached a Final Investment Decision (FID) for the Balder Phase VI project in the North Sea. The project is expected to develop around 15 million barrels of oil equivalent (mmboe) of gross proved plus probable (2P) reserves and has strong economics, with a break-even below $35 per barrel, IRR above 35%, and a payback period of less than a year from start of production at current prices. The project consists of one additional multilateral production well, a new subsea template, and a flowline tied into the Jotun FPSO. Balder Phase VI is expected to come onstream by the end of 2026. The announcement also mentions the upcoming Balder Future project, which is expected to increase the area's peak daily production by 80,000 barrels of oil equivalent per day (boepd) gross.