Touat Start-Up Now 'By Mid-2019': Neptune
UK-based independent, Neptune Energy, said its Touat gas development in southwest Algeria is now 93% complete, with the export of first gas expected "by the end of 1H 2019." Construction of the Touat central process facility is continuing, Neptune added in its results statement November 30.
Neptune had expected Touat's start-up "during" 1H 2019 and its website was showing this earlier Nov.30. The project - due to produce annually 4.5bn m³ gas and 630,000 barrels of condensate at plateau - was originally due to start up 2016 but delayed several times whilst France’s Engie was its operator.
Touat is now operated by Neptune with 35%, alongside Algerian state Sonatrach with 35% and Engie with 30%. The latter represents Engie's final remaining upstream interest, following its $4.7bn divestment to Neptune completed early 2018.
Elsewhere in North Africa, Neptune’s Bagha C-88 exploration well on the Alam El Shawish licence in Egypt was spudded in September with "testing operations ongoing." Production in Egypt was higher, due to its start-up of two other wells on its Alam El Shawish West licence in July.
Neptune is primarily a gas producer and is backed by private equity funds Carlyle and CVC plus Chinese sovereign wealth fund CIC. Its 9M 2018 production averaged 161,500 barrels of oil equivalent per day, of which 118,200 boe/d was gas and 43,300 b/d liquids. Neptune's reported net profit of $179.1mn for the nine-month period to September 2018 contrasted with its net loss of $1.7mn for the period March 22 (when it was incorporated) to September 30 2017. CEO Jim House said 2018 had been a "transformational year for the company as we integrated the Engie E&P and VNG Norge businesses".
Among its offshore Norway developments, Neptune said its Fenja six-well oil and gas project is expected to produce end-2020, while sanction is due early 2019 with start-up scheduled for end-2020 at its P1 and Cara oil and gas tie-back projects to Neptune's existing producing Gjoa gas field. Neptune has a 30% stake in all these Norwegian fields/projects.
In Australia's Timor Sea, Neptune continues to evaluate potential options for commercial development of its "substantial Petrel gas discovery" which it operates with a 60% stake in the Bonaparte basin.
A week ago Neptune appointed Armand Lumens its new CFO effective December 1. He previously held the same post at Shell Trading & Supply and later Louis Dreyfus. He replaces Peter Thomas.
Above, Touat gas project. Below map showing its location (Credit for both: Neptune Energy)
