Page 20 - EurOil Week 39

EurOil PROJECTS & COMPANIES EurOil

Neptune starts subsea

work at Seagull

NORTH SEA NEPTUNE has reported progress at the Seagull Scotland.
project in the UK North Sea, and has also agreed Neptune, which is primarily North Sea-fo-
Neptune has also sold to sell a stake in a Norwegian licence to private cused, reported weaker earnings for the second
a licence interest to equity-backed Okea. quarter, although its revenues were supported by
Norway’s Okea. In a statement on September 23, Neptune hedging and higher production.
said that contractor TechnipFMC had deployed
the Apache II vessel to start laying a 5-km pipe- Norwegian sale
line tying Seagull back to the BP-operated Egret Neptune has also agreed to sell a 30% interest in
manifold. production licence 938 (PL938) in the Norwe-
Seagull is a high-pressure, high-temperature gian Sea to Okea, while retaining a further 30%
(HPHT) field in the Central North Sea con- and operatorship.
taining 50mn barrels of oil equivalent (boe) in PL938 is less than 10 km north-west from the
proven and probable reserves. The field is due Okea-operated Draugen field and contains the
on stream in late 2021 and will produce 50,000 Calypso prospect, estimated to hold 37mn boe.
barrels of oil equivalent per day (boepd) at peak The licence partners, which also include Cono-
capacity. coPhillips and Eni-owned Var Energi, have com-
“This is a key milestone for Seagull – the mitted to sinking a well at Calypso in either late
first step in offshore execution of the project,” 2021 or 2022. Under the deal, Okea will cover
Neptune’s UK managing director, Alexandra some of Neptune’s share of drilling costs.
Thomas, said. “We continue to work with our “As operator of Draugen we are keen to find
contractors and suppliers, focusing on the safe resources in the nearby area with the potential
deployment of people, vessels and equipment to be developed through our existing infrastruc-
and managing the challenges associated with the ture, and Calypso fits this exploration strategy
impact of the ongoing [coronavirus] COVID-19 well,” Okea said in a statement. “We look forward
pandemic.” to working with the operator and other licensees
TechnipFMC’s Normand Mermaid ves- to ensure an efficient exploration well and fur-
sel was mobilised in late August to undertake ther activity in the licence.”
pre-pipelaying work, including surveys and Draugen has been in production in 1993
boulder removal. After the pipeline is installed, and oil output peaked in 2001 at 205,000 barrels
the contractor’s Normand Ranger vessel will per day. By 2019, production had slid to under
carry out trenching activities. 20,000 bpd.
Neptune operates Seagull with a 35% interest, Okea bought into Draugen and the Gjoa
having acquired this position off Houston-based field in a NOK4.52bn ($470mn) deal with
Apache in 2018. Its partners BP and Japan’s Royal Dutch Shell in 2018. It is looking for
JAPEX have shares of 50% and 15% respectively. other fields near Draugen and Gjoa, which is
A final investment decision (FID) on the project also in decline, to tie back to their under-utilised
was taken in March last year. infrastructure.
The field’s gas will be pumped to the Cats OKEA reached a deal in July to buy Norwe-
processing terminal at Teeside in northern Eng- gian state giant Equinor’s 40% position in the
land, while its oil will be delivered via the Forties Aurora discovery just west of Gjoa, assessed to
system to the Kinneil terminal in Grangemouth, hold 12-28mn boe in recoverable reserves. ™

P20 www. NEWSBASE .com Week 39 01•October•2020