Neptune makes new oil and gas find near Norway Gjoa hub, boosting Troll crude

London-based Neptune Energy has made a new oil and gas discovery with recoverable resources estimated at 8 million-24 million barrels of oil equivalent near its Gjoa production hub, which feeds Troll oil flows and UK gas supply, the company said April 28.

Neptune put 'in place' resources for the Hamlet discovery at 30 million-70 million boe and said the find would be considered for a tie-back to its Gjoa hub, where a number of such tie-in projects have been underway.

The Gjoa area fields produced 122,000 b/d of oil equivalent in 2021, split roughly evenly between gas and liquids. The latest start up to feed the hub, Duva, came online in August 2021 and the Nova tie-in is due to start up later in 2022.

Neptune is planning a further exploration well in the area, its director of Norwegian exploration and development, Steinar Meland, said. "The Hamlet exploration well confirms the extended potential of the Agat play, previously only developed and produced in the Neptune-operated Duva Field," Meland said. "Neptune plans to drill a further exploration well, the Ofelia prospect, in the same play later this year."

Gjoa crude volumes feed into the Troll pipeline to Mongstad, boosting production of the Norwegian flagship blend, a component in the Platts Dated Brent benchmark, however, Gjoa gas is not part of the Troll gas stream, being sent directly to St. Fergus on the UK coast. Dated Brent was assessed at $102.9/b April 27.

The Gjoa hub is the first Norwegian production hub to source part of its power needs from the renewables-based Norwegian electricity grid, an innovation set for a big boost once Phase 2 of the giant Johan Sverdrup project comes on stream in the fourth quarter 2022, bringing power to several nearby fields.

Neptune is owned by private equity companies Carlyle Group and CVC Capital Partners together with state-owned China Investment Corporation.