ENI Subsidiary Var Energi Sanctions Seven Balder Wells at $30 Breakeven Targeting 86 MMboe via Jotun FPSO

Var Energi ASA sanctioned the Balder Next New Wells project on June 18, 2026, committing to a first phase of seven new production wells tied back to the Jotun floating production, storage and offloading vessel. Start-up is targeted for the fourth quarter of 2027. The project represents the first phase of a longer program to extend production life on the Balder licence through the Jotun FPSO.

The project increases the Balder area's gross proved plus probable reserves to 86 million barrels of oil equivalent (MMboe), up from approximately 75 MMboe. The breakeven cost is approximately $30 per boe, and the internal rate of return exceeds 35%. Brent crude was trading at $78.08 per barrel as of mid-morning June 18, per OilPrice.com, leaving a margin of roughly $48 per boe at current prices.

Var Energi operates the Balder field with a 90% working interest. Kistos Energy Norway AS holds the remaining 10%. The old Balder Floating Production Unit is scheduled for decommissioning starting in 2028 as the Jotun FPSO takes over production hosting.

ENI's 63% Stake and the Norwegian Shelf Strategy

ENI S.p.A. holds approximately 63% of Var Energi ASA, making it the controlling shareholder of the Oslo-listed operator. HitecVision's Point Resources Holding retains approximately 14%. Var Energi was created from the 2018 merger of Eni Norge and Point Resources, consolidating ENI's Norwegian Continental Shelf assets into a single listed vehicle.

For ENI, the Balder Next New Wells FID fits a strategy of extending production life on existing Norwegian shelf infrastructure rather than pursuing greenfield development. The Jotun FPSO, which began operations in June 2025 at the Balder hub, carries a design life that extends well into the 2040s. Seven tied-back wells at a $30 per boe breakeven generate substantially higher margins than frontier exploration alternatives at current Brent prices.

Var Energi targets company-wide production above 400,000 boe per day. The Balder area is expected to contribute 70,000 to 80,000 boe per day gross toward 2030, once the new well program ramps up. ENI consolidates Var Energi's production volumes into its own upstream accounts.

Balder Field and the Jotun FPSO Transition

The Balder field was discovered in 1967 and has produced since 1999. It has undergone a major infrastructure renewal with the Jotun FPSO, which replaced the aging Balder Floating Production Unit and began commissioning in June 2025. Within the first months of operation, the new FPSO unlocked a production ramp of roughly 80,000 boe per day gross from the Balder hub.

Var Energi's Balder breakeven of $30 per boe compares to Equinor's Norwegian Continental Shelf portfolio, where Oil Authority reported shelf projects break even below $35 per barrel. Both operators benefit from Norway's stable fiscal regime and the infrastructure networks across the NCS, which lower per-well development costs relative to greenfield alternatives. The Balder project shows that the Norwegian shelf remains competitive at oil prices well below today's Brent level.