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    Norway Approves Neptune’s North Sea Projects

Summary

The company hopes the approvals should allow a production launch before the end of 2020.

by: Tim Gosling

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Natural Gas & LNG News, Europe, Corporate, Exploration & Production, News By Country, Norway

Norway Approves Neptune’s North Sea Projects

UK-based Neptune Energy announced June 26 that the Norwegian authorities have approved its development plans for two North Sea projects.

The London-listed company said in a statement that the approval of the plans for the offshore Duva and Gjoa P1 projects should allow the launch of production in late 2020. The development plans were submitted to the Norwegian authorities on February 21 2019.

The fields will be developed through subsea tie-backs connecting two templates to the nearby Gjoa platform, operated by Neptune. Total recoverable resources are estimated at 120mn boe.

“The approval of the plans allows us to start this summer with the first step in our parallel project execution– the subsea installation of the Duva template,” said Neptune Energy Norge’s projects and engineering manager Erik Oppedal.

Duva’s recoverable resources are estimated to be 88mn boe and it’s expected to yield around 30,000 boe/day at maximum production. The field will have three production wells, two oil producers and one gas producer, with the potential for an additional oil well. Licence partners are Neptune Energy Norge (30% and operator), Idemitsu Petroleum Norge (30%), Pandion Energy (20%) and Wellesley Petroleum (20%).

P1’s recoverable resources are estimated at 32mn boe and it is expected to yield around 24,000 boe/day at maximum production. Licence partners are Neptune Energy Norge (30% and operator), Petoro (30%), Wintershall DEA (28%) and OKEA (12%).

Neptune Energy Norg managing director Odin Estensen said: “This is a significant milestone for our business and for the licence partners in Duva and Gjoa. With these plans approved, we remain on track for the successful execution of these important projects. Not only do these developments strengthen Gjoa’s position as a major hub in the northern North Sea, they demonstrate our ambitions to continue growing our business on the Norwegian Continental Shelf.”

Duva is in production licence 636, 35 km from land in Hordaland and about 60 km north of the Troll field. It was formerly owned by French Engie, whose upsream assets Neptune bought. Estimated costs of developing the field are NKr 5.5bn ($640mn).