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Neptune to sink two North industry at a very challenging time”. activities. However, by rapidly adapting to
a new reality and through perseverance,
The company added that the COVID-19
Sea wells pandemic and low oil prices created great we have managed to bring this new well on
uncertainty for the project. With that in
stream without any incidents and within
The Norwegian Petroleum Directorate (NPD) mind, an assessment was needed to get an budget and timeframe”.
has granted Neptune Energy a drilling permit overview of potential consequences. At the The Sillimanite gas field, located some
for two wildcat wells in the North Sea off same time, Var Energi took compensatory 200 km off the coast of Den Helder, was
Norway. measures to reduce the effects of COVID-19 discovered in 2015 and started production
The drilling programme for wells 34/4-15 and maintain the progress plan. in early 2020.
S and 34/4-15 A relates to the drilling of The project review showed that the It is an unusual field as it lies directly
wildcat wells in production licence 882, the pandemic resulted in a delay of part on the maritime border of the Netherlands
NPD said on June 12. deliveries, but that the overall plan was still and the United Kingdom. An agreement
The two wildcat wells will be drilled valid. between the UK and the Netherlands was
from the Deepsea Yantai drilling rig after With the Norwegian Parliament’s needed before the Sillimanite development
concluding the drilling of production wells decision on measures for the industry and could proceed.
on the Duva field. the other compensatory measures in place, According to the company, the
Neptune has already received the Var Energi stated that it was confident that production not only starts according to the
offshore safety clearance to use the Deepsea the project could be carried out with a planned schedule but the drilling result
Yantai rig for these wells. production start date in the second half of is also as good as expected and strongly
The semi-sub is expected to work on the 2022. supports the first Sillimanite well.
two Dugong wells between 44 and 90 days. Norway’s elder to be rejuvenated
Neptune Energy Norge is the operator The Balder Future project will extend
of the licence with an ownership interest of the life of the field (PL 001) by 2045, giving Wintershall Dea adds more
40%. Norway’s oldest license a lifetime of 80
Other licensees are Concedo (20%), years. time to Energy Swan PSV
Petrolia NOCO (20%), and Idemitsu In addition to the upgrade of the Jotun
Petroleum Norge (20%). FPSO, 13 new production wells and one charter
The area in this licence consists of parts water injection well will be drilled on the
of blocks 33/6 and 34/4. The wells will be field. The project aims to extract another Norwegian offshore vessel operator
drilled about 10 km northwest of the Snorre 136mn barrels of oil equivalent. Golden Energy Offshore Services (GEOS)
field. “We are proud to be continuing the has secured another contract extension
Production licence 882 was awarded on PL 001 legacy, and by utilising existing for its Energy Swan platform supplier
10 February 2017 in (APA 2016). infrastructure we contribute to good with Wintershall Norge, a Norwegian unit
These are the first and second resource management”, Kragseth said. of Wintershall Dea.
exploration wells to be drilled in the licence. It is worth noting that the Balder GEOS said on June 10 that the contract
Future project represents an investment of is in direct continuation of the charter
NOK19.6bn ($2bn). contract from 2013.
Var Energi to upgrade FPSO chartered for a firm period of four years
The large PSV Energy Swan was in 2013
for Balder X plan Gazprom-Wintershall JV plus optional extensions (total of four years
options).
Var Energi, a subsidiary of Italy’s Eni, starts up second well at Wintershall Norge and GEOS agreed
is taking the Jotun FPSO ashore for several extensions after the expiration of
upgrading to start the first stage of the life- Dutch field the firm period, last of which was for a
extension process for the Balder Area in firm period until July 31 2020.
the North Sea. Wintershall Noordzee, a joint venture The two companies have now agreed
Var Energi said on June 15 that the of Wintershall Dea and Gazprom, has that the Energy Swan would remain firm
FPSO was on its way to Rosenberg Worley’s started gas production from its second on charter in direct continuation of the
facility in Stavanger for upgrading. B2 production well at the Sillimanite field present firm period for an additional four
The Jotun FPSO has been producing oil offshore the Netherlands. months until November 30 2020.
from the Jotun field in the North Sea since Wintershall Noordzee started drilling According to the company, the charter
1999 and this event kicks off Balder’s life- the second Sillimanite production well rate reflects the market conditions.
extension process. at the beginning of February. Shortly The two companies also agreed that
Var Energi CEO Kristin Kragseth, afterwards, the world was confronted with the charterers continue having options
said: “I am happy and very proud to have the challenges caused by Covid-19. available to charter the vessel as per the
Jotun back in Stavanger. Happy because Robert Frimpong, managing director original charter until the expiration of this
this marks the start of Var Energi’s most of Wintershall Noordzee, said: “Nobody extension.
important project going forward. Proud could have foreseen the impact the
because we secure jobs for the local supplier outbreak of Covid-19 would have on our

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