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    Neptune Energy sees need for diversity


The company powered a recent oil and gas field off Norway with hydroelectric power.

by: Daniel Graeber

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Neptune Energy sees need for diversity

Europe’s Neptune Energy said November 18 that tight supplies of oil and natural gas make the case for diversifying its energy mix.

Neptune in its third quarter earnings report highlighted recent moves in low-carbon, ranging from wind-powered hydrogen off Norway to a large-scale carbon capture and storage (CCS) facility in the Dutch waters of the North Sea.

“As gas and oil supplies remain tight, we are focused on maximising safe and efficient production operations to supply key markets,” CEO Jim House said. “The tightening of supply and subsequent increase in prices underlines the need for a diverse energy mix and for economies to maximise lower carbon and lower cost domestic production.”

Neptune in August launched production at the Duva oil and gas field in the Norwegian waters of the North Sea, estimating the project will yield 30,000 barrels of oil equivalent (boe)/day at full capacity.

Like a growing number of Norwegian shelf installations, Duva is supplied with hydroelectric power from the shore to reduce its emissions. Neptune estimates the project's CO2 emissions/boe at less than half the average for the Norwegian shelf.

Neptune turned in a production rate of 135,300 boe/day in Q3, within range of its quarterly expectations. It left its full-year production guidance of between 130,000 and 135,000 boe/day in place. House said production was supported by the start of operations at Duva and further growth is expected within the next two years.

EBITDAX, a measurement of the company’s ability to produce income from operations, came in at $608.9mn, well over doubling the performance from the same period last year.

Neptune last week sold off non-core asset at the Draugen, Brage and Ivar Aasen fields, as well as its stakes in the Edvard Grieg oil pipeline and the Utsira High gas pipeline, in Norway to local firms Okea and M Vest Energy for $35mn.