Neptune Energy confirms oil find off Norway

Neptune Energy and its partners announced the commercial discovery of oil at the Dugong well in the Norwegian sector of the North Sea, the largest discovery in Norway so far this year. 

Dugong is located 158 kilometres west of Florø, Norway, at a water depth of 330 metres, and is close to existing production facilities. The Dugong prospect consists of two reservoirs that lies at a depth between 3,250 – 3,500 metres.

The volumes are estimated to be in the range of 6.3 – 19.0 million standard cubic meters (MSm3) of recoverable oil equivalent, or 40 – 120 million barrels of oil equivalent (boe), Neptune Energy said in a statement.

Neptune Energy’s managing director in Norway, Odin Estensen, said: “This is a significant discovery and strategically important for Neptune Energy in this region.  Dugong may also open up additional opportunities in the surrounding licences, with the potential for a new core area for Neptune in Norway.”

In addition, the Dugong discovery has significantly de-risked another prospect in the licence estimated by Neptune at 5.2 million standard cubic meters (MSm3) of recoverable oil equivalent, or 33 million boe. This brings Neptune’s estimate of the total resource potential in PL882 to as much as 153 million boe.

Neptune Energy’s director of Exploration & Development in Norway, Steinar Meland, said: “The discovery gives new and valuable understanding of the subsurface in this part of the Tampen area.

“We are very pleased to see that our exploration model developed together with our partners has proved to be successful. We will now initiate studies, as well as consider development options for the discovery.”

The discovery well 34/4-15 S and the down-dip sidetrack 34/4-15 A proved oil in the Viking and Brent Groups of the Dugong prospect. These are the first exploration wells in production license 882. The license was awarded in 2017 as result of the Norwegian licensing round Awards in Predefined Areas (APA).

Dugong partners: Neptune Energy (operator and 40 per cent), Concedo (20 per cent), Petrolia NOCO (20 per cent), and Idemitsu Petroleum Norge (20 per cent).