Neptune Earmarks $150 Million for Exploration and Appraisal in 2021

Independent producer’s 2021 exploration budget will remain flat at around $150 million.

Deepsea Yantai offshore oil platform.

UK-based independent Neptune Energy said its exploration and appraisal spend for 2021 will remain flat at around $150 million. The company said it had up to 11 wells planned for the year including followup wells at the Dugong and Maha discoveries as well as a wildcat at Dugong Tail.

Dugong was discovered in the Norwegian portion of the North Sea in 2020. Neptune believes the prospect holds between 40–120 million BOE. Dugong is located 158 km west of Florø, Norway, at a water depth of 330 m, and is close to existing production facilities. The Dugong prospect comprises two reservoirs that lies at a depth between 3250–3500 m.

The Maha discovery offshore East Kalimantan is estimated to hold gas resources in excess of 600 Bcf. In 2019, Neptune and its partners, Eni (operator) and Pertamina, were awarded the West Ganal production-sharing contract that holds the Maya find.

An exploration well targeting the Dugong Tail prospect, adjacent to the south of the Dugong find, is slated for the third quarter of this year and will be drilled using Odjfell semisubmersible Deepsea Yantai.