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    Neptune To Buy Apache UK Assets


Neptune is buying a development and a prospect from Apache in the UK central North Sea.

by: Mark Smedley

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Natural Gas & LNG News, Europe, News By Country, United Kingdom

Neptune To Buy Apache UK Assets

Neptune Energy said August 13 that it has agreed to acquire certain development and exploration assets in the UK central North Sea from US independent Apache Corporation for an undisclosed price.

Neptune will acquire Apache’s 35% working interest in the Seagull development and a 50% working interest in the Isabella prospect, two oil and gas assets both operated by Apache. The proposed transaction is subject to the customary regulatory approvals, with completion expected this year. 

The transaction follows Neptune’s announcement in June to acquire VNG Norge on the Norwegian continental shelf and, said Neptune, demonstrates its "commitment to the UK Central North Sea."

The Seagull development will consist of a multi-well subsea tieback project to existing nearby facilities that will commence during 2019 with first production expected prior to Q1 202, while Isabella prospect is considered one of the largest undrilled exploration opportunities in the central North Sea, with planned drilling operations also commencing during 2019.

Other partners in Seagull are BP 50% and Japex 15%. Other partners in Isabella are Total (via Maersk) 30% and EDF-owned Edison 10%.

Update later on August 13: North Sea engineering design consultancy Infinity Oilfield Services said Aug.13 it was recently awarded a substantial contract for the Seagull development, a subsea tie-back to a third-party platform.  The project will see Infinity support the pre-front end engineering and design (pre-Feed) and also Feed, providing production assurance, pipeline integrity engineering and subsea technical assurance on behalf of Apache, it said, while acknowleding that Neptune Energy said Aug.13 it has agreed to acquire Apache’s 35% stake in the Seagull development.