Neptune Energy production expected to increase in second-half 2023

Aug. 10, 2023
Startup for Seagull offshore the UK is scheduled for September, and the Gudrun electrification project is scheduled to come online by the end of the year.

Offshore staff

LONDON  Neptune Energy said production is expected to increase in second-half 2023. First-half production of 140.1 kboe/d reflected a temporary outage at the non-operated Snøhvit Unit and planned maintenance in the UK and the Netherlands.

In addition, Seagull (UK) startup is scheduled for September. In June the company said it expects to bring the Seagull tieback development to bp’s ETAP complex in the central North Sea later this year.

The company also reported improved safety performance, with a total recordable injury rate lower at 1.69 per million hours worked.

Low-carbon strategy

Neptune awarded three CCS licenses in the UK, and license applications were submitted in Norway and the Netherlands.

The company also secured CO2 storage capacity to store the equivalent emissions from its entire 2P reserve portfolio.

Additionally, the Gudrun electrification project is scheduled to come online by the end of the year. In November 2022, Neptune had reported issues with commissioning the Utsira High electrification project in the Norwegian North Sea, which delayed startup of the Gudrun electrification project.

Proposed acquisition

Sale and purchase agreements have been signed for Eni to acquire Neptune Energy Group Ltd., with Vår Energi to acquire Neptune Energy Norge AS.

Transactions have an aggregate enterprise value of $4.9 billion, and they are expected to close by the end of first-quarter 2024.

Neptune also plans to carve-out of its German business, to be owned and operated by existing Neptune shareholders.