"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.