Marine construction contractor Ocean Installer, a Moreld subsidiary, has been awarded a fast-track EPCI (engineering, procurement, construction and installation) contract by Vår Energi for the Balder Next New Wells project, according to Splash247. The award is defined as "major" by Moreld, meaning it is worth over NOK 2bn ($202.5m), making it among the largest in Ocean Installer's history.
Contract Details and Scope
Under the contract, Ocean Installer will execute all SURF (subsea, umbilical, riser, and flowline) installation activities for the Balder Next New Wells project, Splash247 reported. This work supplements an earlier award in the fourth quarter of 2025 for the procurement of flexible flowlines and risers. The project is part of Vår Energi’s hub development strategy in the Balder area of the North Sea. It comprises a first-phase development of seven new wells that will be tied back to the Jotun FPSO, with first oil scheduled for 2027.
Strategic Partnership
The Balder Next New Wells contract is the third project contract awarded under the subsea strategic partnership established between Vår Energi and Ocean Installer in June 2022, according to Splash247. Project execution will be carried out in close cooperation with another strategic partnership member, OneSubsea, which is responsible for the supply of the subsea production system.
Recent Other Contract Award
Earlier the same week, Ocean Installer announced it had won a contract from TotalEnergies for decommissioning work on the Byggve, Skirne, and Atla fields in the North Sea, which are satellite tiebacks to the Heimdal hub, Splash247 reported. This indicates strong momentum for the Norway-based contractor.
Implications for Energy Commodities
Although the article does not provide direct commodity price data, the Balder Next project's development supports future oil supply from the North Sea. The project involves tiebacks to the Jotun FPSO, with first oil expected in 2027, which will contribute to Vår Energi’s production output. For commodity traders and analysts tracking North Sea crude grades, such investments signal sustained upstream activity despite the energy transition context. However, the immediate price impact is indirect, with the contract reflecting capital expenditure rather than spot production.
| Contract Details | Value |
|---|---|
| Balder Next New Wells (Ocean Installer) | Over NOK 2bn ($202.5m) |
| Decommissioning (TotalEnergies) | Not disclosed |
Key project milestones include the ongoing procurement phase (Q4 2025), installation execution, and first oil target in 2027. The strategic partnership between Vår Energi and Ocean Installer, along with OneSubsea, provides a framework for further subsea developments in the Balder area.
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