Vår Energi ASA

Earnings Release • Jun 18, 2025

Vår Energi confirms Balder Phase VI project sanction

Vår Energi confirms Balder Phase VI project sanction

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%).

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.

Safe and responsible operations are at the core of our strategy. Our ambition is

to be the safest operator on the NCS, and to become carbon neutral in our net

equity operational emissions by 2030.

Vår Energi has around 1400 employees and equity stakes in 42 producing 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, VP Investor Relations

+47 905 09 291

ida.fjellheim@­varenergi.no (ida.fjellheim@%C2%ADvarenergi.no)

Media relations

Andreas Wulff, VP Public Affairs

+47 926 16 759

andreas.wulff@­varenergi.no (liv.omdal@%C2%ADvarenergi.no)