Norway: Neptune Energy Increases Stake in Large Offshore Discovery

OE Staff

October 8, 2020

Deepsea Yantai drilling rig was used to drill the successful Dugong well - Credit: Odfjell Drilling

Deepsea Yantai drilling rig was used to drill the successful Dugong well – Credit: Odfjell Drilling

Oil and gas company Neptune Energy is increasing its stake in an offshore license in Norway which contains the Dugong oil discovery, dubbed Norway’s largest oil find so far this year.

Neptune Energy, the operator of the license PL882 in the North Sea, has agreed to acquire a further  5% interest in the offshore block from its partners Concedo, lifting its interest in Dugong to 45%.

“The payment will be partly cash, partly carry of future cost and partly a contingent payment,” Neptune said.

On completion of the transaction, the Dugong partners will be Neptune Energy (operator and 45%), Concedo (15%), Petrolia NOCO (20%) and Idemitsu Petroleum Norge (20%).

Volumes at the Dugong discovery are estimated to be in the range of 40-120 million barrels of oil equivalent (boe). The discovery is located 158 kilometers west of Florø, Norway, at a water depth of 330 meters, and is close to existing production facilities.

Dugong was drilled by the Deepsea Yantai, a new semi-submersible rig, owned by CIMC and operated by Odfjell Drilling.

Neptune plans to drill two more wells on PL882, an appraisal well on the Dugong discovery and an exploration well targeting the Tail prospect. 

Prospective resources for the Tail prospect are currently estimated at 33 million boe. Drilling is expected to begin in the first quarter of 2021.

Neptune in August extended the contract for the Deepsea Yantai drilling rig for an additional 3 wells, taking the rig’s contract to late 2021.