Final investment decision for Seagull project

28/03/2019

Neptune Energy announces final investment decision for Seagull project.

Neptune Energy and its joint venture partners BP and Japex today announced that the final investment decision for the Seagull oil project in the UK North Sea has been agreed. Seagull is expected to initially produce around 50,000 barrels of oil equivalent per day1 (80 per cent oil) across its 10-year design life. Proved plus probable gross reserves are estimated at 50 million barrels of oil equivalent.

The submission of the Field Development Plan (FDP) for Seagull to the Oil and Gas Authority (OGA) was completed by agreement of all the participants today. Execution works will commence subject to the OGA’s approval of the FDP, with first production planned by the end of 2021.

Seagull is a high pressure, high temperature development located in the Central North Sea on UK licence P1622 Block 22/29C, 17km south of the BP Operated ETAP Central Processing Facility (CPF). Seagull will be tied back to the ETAP CPF partially utilising existing subsea infrastructure. 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.

Jim House, Neptune CEO, 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”.

Neptune is the operator of Seagull and has a 35 per cent equity interest. Its joint venture partners are BP with 50 per cent and Japex with 15 per cent.

Neptune acquired its 35 per cent interest in Seagull from Apache North Sea Limited in 2018.

– ends –

Notes to editors

1 Gross production

About Neptune Energy

Neptune Energy is an independent global E&P company and, having completed the acquisition of the exploration and production business of the ENGIE group in February 2018, is now active across the North Sea, North Africa and Asia Pacific. The business had production of 160,500 net barrels of oil equivalent per day in the first three quarters of 2018 and 2P reserves at 31st December 2017 of 542 million barrels of oil equivalent. The Company, founded by Sam Laidlaw, is backed by CIC and funds advised by Carlyle Group and CVC Capital Partners.

For further information on the Seagull project please see here: