Neptune dishes out drilling services contracts for North Sea project

Oil and gas company Neptune Energy has awarded new drilling services contracts for the Seagull project in the UK North Sea worth a total of $40 million.  

Seagull project map
Seagull project map; Source: Neptune Energy

Neptune Energy has reached a final investment decision (FID) for its operated Seagull project in March 2019. The Seagull multi-well subsea project connects the oil and gas field with existing nearby facilities. First oil from the project is expected in 2021.

Neptune has previosuly awarded a drilling contract for the Seagull project to the Valaris-owned Rowan Gorilla VI (Valaris JU-248) jack-up rig.

According to Neptune’s statement on Tuesday, the company has now awarded drilling services contracts for the project. All contracts have been awarded under a three-year agreement, with two one-year options to extend.

The M I Drilling Fluids will provide mud, drilling fluids, and well-bore clean-up services.

A completions equipment and services contract was awarded to Halliburton for the provision of high pressure/high-temperature completions equipment.

Schlumberger Oilfield UK will provide perforating services.

Seagull is expected to initially produce around 50,000 barrels of oil equivalent (boe) per day (80 percent oil) across its ten-year design life. Proved plus probable gross reserves are estimated at 50 million boe.

Neptune Energy’s Seagull Project Manager, Shona Campbell, said: “The Seagull development is hugely important for Neptune and underlines our commitment to growing our operations in the UK North Sea. The award of the contracts is also a crucial step in the development and demonstrates the diverse range of technical expertise available from UK suppliers.”

Seagull is a high pressure, high-temperature development located on UK license P1622 Block 22/29C, 17km south of the BP-operated ETAP Central Processing Facility (CPF). Seagull will be tied back to the ETAP CPF partially utilizing existing subsea infrastructure which would otherwise have been decommissioned. Gas from the development will come onshore at the CATS processing terminal at Teesside, while oil will come onshore through the Forties Pipeline System to the Kinneil Terminal, Grangemouth.

Neptune is the operator of Seagull and has a 35 percent equity interest. Its joint venture partners are BP with 50 percent and JAPEX with 15 percent. Neptune acquired its interest in Seagull from Apache in 2018.

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