Neptune extends Deepsea Yantai contract for Dugong work

Neptune Energy extended its contract with Odfjell Drilling and CIMC for the Deepsea Yantai semisubmersible rig with an additional two wells, securing the rig through 2021.

The rig will conduct further work in the Dugong area in PL 882 in the Norwegian North Sea where Neptune and partners discovered hydrocarbons with discovery well 34/4-15 S in 330 m of water 158 km west of Florø, close to existing Snorre field production facilities in summer 2020 (OGJ Online, July 30, 2020).

The discovery consists of two reservoirs that lie 3,250-3,500 m subsea. The discovery well and the down-dip side-track 34/4-15 A proved oil in the Upper Jurassic Intra-Draupne sandstones (Viking group) and the Middle Jurassic Rannoch formation (Brent group).

The reservoir lies at a depth of 3,250-3,400 m.

Under the current contract, Neptune can exercise a further 8 wells.

Volumes are estimated at 6.3–19.0 million standard cu m of recoverable oil equivalent, or 40–120 MMboe. The discovery identified another prospect estimated by Neptune at 5.2 million standard cu m of recoverable oil equivalent, or 33 MMboe.

Neptune is operator at Dugong (40%) with partners Concedo (20%), Petrolia NOCO (20%), and Idemitsu Petroleum Norge (20%)