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Neptune Energy awards $40 million in drilling services contracts for Seagull

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Neptune Energy, alongside its joint venture partners BP and JAPEX, have announced the award of new drilling services contracts for the Seagull project in the UK North Sea.

All contracts have been awarded under a three-year agreement, with two one-year options to extend, and include:

  • 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 Manufacturing & Services for the provision of high-pressure/high-temperature completions equipment; and
  • Schlumberger Oilfield UK will provide perforating services.

Seagull is expected to initially produce around 50,000 BOE/d across its 10-year design life. Proved plus probable gross reserves are estimated at 50 million BOE.

“The Seagull development is hugely important for Neptune and underlines our commitment to growing our operations in the UK North Sea,” Shona Campbell, Neptune Energy’s Seagull Project Manager, said. “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 has already been recognized as an excellent example of what can be achieved through a collaborative approach between partners, and we look forward to continuing to progress with this development at pace,” Ms Campbell said.

Seagull is a high-pressure, high-temperature development located on UK license P1622 Block 22/29C, 17 km 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% equity interest. Its joint venture partners are BP, with 50%, and JAPEX, with 15%. Neptune acquired its 35% interest in Seagull from Apache North Sea in 2018.

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