Neptune makes first step in offshore execution of North Sea project

Neptune Energy and its joint venture partners BP and JAPEX have started the subsea construction phase of the Seagull tie-back project, which is located in the UK North Sea.

Neptune Energy sanctioned the Seagull project back in March 2019.

According to information on Neptune’s website, first oil from the project is expected in 2022.

In an update on Wednesday, Neptune said that TechnipFMC, working under the Neptune Energy Alliance Agreement, has deployed the Apache II pipelay vessel to start the pipe-in-pipe installation, laying approximately 5km of pipe connecting the Egret manifold to the Seagull development.

Neptune Energy’s UK Managing Director, Alexandra Thomas, said that Seagull is expected to produce 50,000 boe per day (gross) and supports UK security of supply.

Thomas added: “This is a key milestone for Seagull – the first step in offshore execution of the project. We continue to work with our contractors and suppliers, focussing on the safe deployment of people, vessels, and equipment and managing the challenges associated with the impacts of the ongoing COVID-19 pandemic“.

TechnipFMC Vice President, Commercial & Projects UK, Mediterranean & Caspian, Bill Morrice, said: “We are delighted to see the first offshore execution milestone on the project come to fruition. Despite the challenging backdrop of COVID-19 we have worked collaboratively with Neptune as one team to deliver our scopes to date both safely and efficiently“.

TechnipFMC’s Normand Mermaid vessel was mobilised in late August to provide pre-lay activities, including surveying and boulder removal.

Following the pipe installation, its Normand Ranger will undertake trenching activities for the development.

Seagull is a high pressure, high temperature (HPHT) 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).

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

Proved plus probable gross reserves are estimated at 50 million boe.

The development will be tied back to the ETAP Central Processing facility, 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.

It is also worth reminding that, in September 2019, Neptune Energy awarded Valaris a contract to provide a heavy-duty jack-up drilling rig for the Seagull development.

It was agreed for Valaris to provide the Rowan Gorilla VI (Valaris JU-248) to drill four firm wells for the development. The approximately 18-month long drilling campaign is scheduled to start in 3Q 2020.