Neptune Takes UK Seagull FID

Private equity-backed Neptune Energy (operator with 35%) and joint venture partners BP and Japex have taken the final investment decision (FID) on the Seagull oil and gas project in the UK's North Sea and submitted the field development plan to the regulator - the Oil & Gas Authority - Neptune said March 28.

Seagull is expected to initially produce around 50,000 barrels of oil equivalent (boe)/day, of which 10,000 boe/d are gas, across its 10-year design life. Proved plus probable gross reserves are estimated at 50mn boe, with first production planned for late 2021.

Seagull is a high pressure, high temperature field in the Central North Sea on UK licence P1622 Block 22/29C, 17 km south of the BP-operated Eastern Trough Area Project (Etap). Seagull will be tied back to the Etap's central processing facility, partly using existing pipelines. 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.

Neptune CEO Jim House said: “Seagull is a low cost, near-term development in close proximity to existing infrastructure. It complements our existing assets in the North Sea and provides growth and greater diversity for our UK business.”

BP holds 50% in the project and Japex 15%. Neptune bought its interest in Seagull from Apache last year.