Neptune Awards UK Upstream Contracts
Neptune Energy and its partners at the Seagull project in the UK North Sea have dished out $40mm in services contracts, the company reported on December 3.
The contracts will run for three years and each includes two one-year extension options. M I Drilling Fluids has been hired for mud, drilling fluids and well-bore clean-up services, while Halliburton Manufacturing & Services has been given a contract for the supply of high pressure/high temperature completions equipment. Schlumberger Oilfield UK has also been enlisted for perforating services.
Seagull is expected to start up by the end of 2021 and produce 50,000 barrels of oil equivalent/day over its 10-year life, 80% of which is oil. Its proved and probable reserves are estimated at 50mn boe.
Neptune has a 35% equity position at the field, while its partners BP and Japan’s Japex have 50% and 15% respectively. The project will be tied back to the BP-operated Etap central processing facility. Gas will be brought ashore at the Central Area Transmission System processing terminal at Teesside while oil will be pumped via the Forties pipeline system to the Kinneil terminal at Grangemouth.