Norway’s Ocean Installer Secures Major EPCI Contract with Vår Energi
Norway’s Ocean Installer, a wholly owned subsidiary of Moreld Group, has made waves in the offshore energy sector by securing a fast-track engineering, procurement, construction, and installation (EPCI) contract with Vår Energi. This landmark deal is set to cover all subsea umbilicals, risers, and flowlines (SURF) installation activities for the Balder Next New Wells project. This contract build upon a previously awarded procurement of flexible flowlines and risers, indicating a significant expansion of scope for Ocean Installer.
Overview of the Balder Next New Wells Project
The Balder Next New Wells project, located in the North Sea, has recently gained positive momentum following a final investment decision (FID) made by Vår Energi and Kistos. The project plans to develop seven new wells that will be tied back to the floating production storage and offloading unit (FPSO) Jotun. With first oil expected by 2027 and project completion slated for 2028, the Balder Next project stands to deliver substantial returns, evidenced by an impressive increase in proven reserves to 86 million barrels of oil equivalent (boe). This is a notable uptick from the previously estimated 75 million boe, showcasing continued refinements in project planning and execution.
Financial Implications and Project Value
Moreld Group has characterized the financial implications of this new EPCI contract as major, citing a value north of NOK 2,000 million (approximately €178 million). This achievement marks one of the largest contract awards in the history of Ocean Installer, further solidifying its place in the competitive landscape of offshore energy services. Notably, this figure excludes the previously awarded procurement contracts from November 2025 for flowlines and risers, underscoring the project’s extensive scale.
Strategic Partnership and Collaborative Execution
The recent contract represents the third award resulting from the strategic partnership established between Vår Energi and Ocean Installer in June 2022. This partnership not only strengthens the operational synergies between the two firms but also emphasizes their commitment to delivering vital offshore infrastructure. The execution of this project will be undertaken in close collaboration with OneSubsea, which will supply the subsea production system (SPS), further enhancing the project’s technical capabilities.
A Milestone for Ocean Installer
Kevin Murphy, CEO of Ocean Installer, articulated the significance of this contract, stating, “This award marks another important milestone in the long-term partnership we have with Vår Energi. This project represents a natural continuation of the collaboration we established back in 2019 with the Balder Future project and the ongoing Balder Phase VI project.” His statement speaks to the growing relationship and trust between the companies, as they have collectively delivered and installed critical offshore infrastructure in previous endeavors.
Future Outlook on the Balder Field
As the operator of the Balder field with a 90% stake, Vår Energi is uniquely positioned to harness the full potential of this project, with Kistos Energy Norway holding the remaining 10%. The project is anticipated to yield high value, featuring robust economics with a breakeven threshold of approximately $30 per boe and an internal rate of return exceeding 35%. This combination of factors not only enhances the project’s viability but also highlights its importance within the broader North Sea oil landscape.
Through such strategic partnerships and significant contracts, Norway’s Ocean Installer and Vår Energi continue to lead the charge in developing vital offshore resources, navigating the complexities of the energy sector with agility and a focus on sustainable growth.