LONDON – Neptune Energy has acquired a 38.75% interest from Spirit Energy in the Pegasus West field and surrounding acreage over four licenses in the UK southern North Sea (P1724, P1727, P4257 and P2128).
Spirit operates the 2014 gas discovery.
Under the transaction, Neptune will align its interests in both Pegasus West and its operated Cygnus gas complex, where Spirit is a 61.25% partner.
The two companies will co-operate on front-end engineering and design studies and plan to take a final investment decision by year end. Following sanction, Neptune would operate the development through first gas and into production.
Alexandra Thomas, UK managing director at Neptune, said: “The alignment of interests…offers material benefits of faster development, lower costs and lower carbon intensities as well as optimization of production operations…
“Cygnus is strategically important for domestic gas supply to the UK, and has one of the lowest carbon intensities on the UKCS, at less than 2kg per boe. The development of Pegasus West will ensure further UK low carbon gas supply, while opening up opportunities for development of other potential gas resources in the Greater Cygnus Area.”
Gerry Harrison, executive vice president, HSES, Subsurface & Non-Operated UK Assets at Spirit, said: “As a subsea tieback to Cygnus, Pegasus West will be a great example of how we can build on the UK’s existing infrastructure... With an estimated 83 bcf of recoverable gas at Pegasus West, it adds further volumes to the Greater Cygnus Area…”