Since the end of June 2023, production from the Balder Area has averaged approximately 2 500 b/d net to KENAS. However, partly due to a planned maintenance period, which was completed on schedule in June, the average rate net to KENAS in the second quarter of 2023 was 1 684 b/d. Output was positively impacted by the restart of the riser at Ringhorne in May. This was temporarily shut-in during the first quarter and will be permanently replaced in the third quarter during the planned Balder FPU turnaround. A new well at Ringhorne was brought on stream during the quarter and production efficiency for Balder/Ringhorne improved to 83% from 80% in the previous three months.

The upgrade of the Jotun FPSO for the Balder X development project is ongoing and the re-float of the vessel out of dry-dock occurred in late in June. This enabled the safe completion of the heavy-lift installation of the turret, turntable, and gantry in July. The operator (Vår Energi ASA) has reported that the upgrade of the FPSO remains on critical path and that it is focussed on securing sail-away in the second quarter of 2024 and production start-up in the third quarter of 2024.

Balder X drilling activities are progressing well with seven out of 15 wells completed. The last well was the first multilateral and represents the longest reservoir section ever drilled in the Balder area, with a total length of 1,153 metres in the reservoir. The project’s subsea equipment has been delivered and the majority is already installed. Two of the six offshore installation campaigns planned this year have been completed according to plan.

The operator did not provide any update to its 2P reserves or the Balder Area during the period. As of December 31, 2022, KENAS estimated its 2P reserves were 24 MMboe.

Financial

During the second quarter, 3 cargoes of crude oil were loaded from the Balder FPU. Net to KENAS, these totalled 185 kbbl, which realised an average price of USD 72.74 per bbl. At the end of the period, KENAS had cash at bank of 8.0 MUSD, of which 1.1 MUSD was restricted and had drawn 14.4 MUSD under the terms of the revolving credit facility from its parent company, Kistos plc.