Vår Energi ASA

Regulatory Filings • Aug 21, 2024

Balder X project update

Balder X project update

Sandnes, Norway, 21 August 2024: Vår Energi ASA (OSE: VAR) today provides a

schedule update for the Balder X development project. The target production

start has been moved to the second quarter 2025. As previously communicated, the

revised plan has limited impact on the Company's 2024 production and no material

impact on guided capital costs. The Company's end-2025 production target of

around 400 thousand barrels of oil equivalent per day (kboepd) is not affected

by the updated project start-up.

"A key consideration has been to limit the carryover work into the offshore

installation and start-up phase as much as possible. Together with our suppliers

we have made every effort to complete the final work on the Jotun FPSO at the

Rosenberg yard to enable field installation before the winter weather period.

However, despite recent good progress, some onshore completion and commissioning

work required prior to sail-away remains. Although achieving first oil by end of

the fourth quarter 2024 is no longer possible this has limited impact on 2024

production and our guidance of 280-300 kboepd for the year is maintained, says

CEO of Vår Energi, Nick Walker.

With all development wells completed and all subsea production systems

installed, the plan is now to complete the FPSO vessel fully onshore, enabling

first oil within the second quarter next year. As part of the decision not to

sail, the cost basis for the project has been updated reflecting a sail-away in

the spring of 2025, this represents an additional project cost of around USD 400

million gross pre-tax (NOK ~4.27 billion¹) of which approximately 75% will be

incurred in 2025. The Company's capital spend guidance for 2024 is revised down

from USD 2.7-2.9 billion to around USD 2.6 billion, reflecting other cost

reductions and a favourable NOK exchange rate. Vår Energi's production target

for 2025 remains unchanged and the Company is on track to reach around 400

kboepd by end of next year.

Balder X, will secure production from the Balder Area beyond 2045, unlocking

gross proved plus probable (2P) reserves of around 150 million barrels of oil

equivalent (mmboe) and with a gross peak production of 80 kboepd².

The Jotun FPSO will be an area host, enabling future growth opportunities.

Balder Phase V is being progressed, including the drilling of six production

wells to utilise the remaining subsea template well slots to capture gross 2P

reserves of more than 30 mmboe. Drilling of these wells will commence in the

first half of 2025 and be completed in 2026. In addition, the Balder Phase VI

project is being matured, to add new subsea facilities and wells, with expected

investment decision planned first half of 2025. There remains significant

additional resource upside in the area and further exploration drilling and tie

-back development phases are being planned.

Vår Energi is operator (90%) of the Balder Area with Kistos Energy (Norway) AS

as partner (10%).

1. USD/NOK of 10.67

2. Vår Energi 90% Working interest

About Vår Energi

Vår Energi is a leading independent upstream oil and gas company on the

Norwegian continental shelf (NCS). We are committed to deliver a better future

through responsible value driven growth based on over 50 years of NCS

operations, a robust and diversified asset portfolio with ongoing development

projects, and a strong exploration track record. Our ambition is to be the

safest operator on the NCS, the partner of choice, an ESG leader with a tangible

plan to reduce emissions from our operations by more than 50% within 2030. Vår

Energi has around 1400 employees and equity stakes in 47 fields. We have our

headquarters outside Stavanger, Norway, with offices in Oslo, Hammerfest and

Florø. To learn more, please visit varenergi.no

Contact

Investor relations

Ida Marie Fjellheim, Head of Investor Relations

+47 90509291

ida.fjellheim@varenergi.no

Media relations

Andreas Wulff, VP Public Relations

+47 92616759

andreas.wulff@varenergi.no

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 the Norwegian Securities Trading Act. This stock exchange

release was published by Ida Fjellheim, Head of Investor Relations at Vår Energi

ASA, on 21 August 2024 at 07:00 CET.