Neptune Awards EPC Contract for UK Field

Neptune Energy and its joint venture partners BP and Japex have awarded TechnipFMC an engineering, procurement, construction and installation (EPCI) target cost contract for the Seagull development oil and gas project in the UK North Sea.

The contract was awarded under a global alliance agreement signed early April between TechnipFMC and Neptune Energy which was signed for an initial five-year term with options for further extensions.

Under the scope of the contract, TechnipFMC will construct and install the wellheads, christmas trees, an umbilical, flowlines, a four-slot manifold, a subsea wye structure and a subsea control system. The offshore construction campaign is scheduled to start Q2 2020.

Neptune said Seagull was in line with the UK strategy of maximising the economic recovery of the UK continental shelf. 

Seagull is a high pressure, high temperature development in the Central North Sea on UK licence P1622 Block 22/29C, 17 km south of the BP operated Eastern Trough Area Project's central processing facility. Seagull will be tied back to that, partly using existing subsea infrastructure. Gas from the development will come onshore at the Central Area Transmission System terminal at Teesside, while oil will come onshore through the Forties Pipeline System to the Kinneil Terminal, Grangemouth.

The development is expected to initially produce around 50,000 barrels of oil equivalent (boe)/day gross, of which 40,000 boe/d will be oil, across its 10-year design life. Proved plus probable gross reserves are estimated at 50mn boe.

Neptune is operator  with 35%; BP has 50% and Japex 15%. Neptune bought its stake from Seagull from Apache in 2018.