LONDON – Neptune Energy has confirmed that it will invest over $1 billion over the next few years in developing the UK’s energy supply
The company says its operated fields in the UK’s Southern Gas Basin and the Norwegian North Sea account for 11% of the UK’s total gas requirements.
Following the recent publication of the British Government’s British Energy Security Strategy, the company plans to:
- Double gas production from its Duva field off Norway to around 13,000 boe/d;
- Begin infill drilling next month on the Cygnus field in the UK sector, with the 10th well due to come on stream in October. It will then start an 11th well next year, helping to maintain production from the Cygnus field and offset the natural decline; and
- Potentially increase supplies further, if UK gas safety management regulations were more closely aligned with European standards.
In the UK’s central North Sea, the company and its partners have allocated around $1 billion to connect Seagull Field to bp’s ETAP complex, which is expected to add around 50,000 boe from next year /d to British production.
As a participant in the Isabella gas condensate discovery operated by TotalEnergies in the same area, Neptune will co-finance an appraisal well planned for the second half of this year. If the results suggest the field is economical to develop, the estimated cost could be $1 billion.
Other plans include spending around $300 million over the next three years to further develop the Gjøa hub in the Norwegian North Sea, which exports gas to the UK via the St Fergus terminal north of Norway. Aberdeen.
Neptune could bid for areas near its core areas in the UK North Sea if the government proceeds with a new round of licensing. It is also in talks with the North Sea Transition Authority over the potential development of Pegasus West via a link to Cygnus.
In the same area, the company is evaluating opportunities for Cygnus electrification and carbon and hydrogen capture storage projects in the North Sea.
Over the past three years, Neptune added that it had invested more than $500 million in securing the UK’s energy supply and more than $500 million in developing new related projects around its Gjøa hub.