Neptune Energy released its Q1 report earlier this week. The company reported strong performance in terms of production despite the COVID-19 challenges. Group production for the period averaged 162 100 barrels of oil equivalents per day (boepd), representing a production efficiency of 86 percent.
The company is seeking to reduce its costs to preserve it balance sheet. These measures will impact the company’s operating activities, G&A and capex.
Neptune believes the project pipeline represents the main area of immediate cost reductions, which will be executed by slowing the pace of investments. This comes in addition to certain slowing caused by COVID-19.
Also, Neptune decided to not go ahead with the acquisition of the Edison UK and Norwegian subsidiaries.
The new project pipeline schedules mean that the following projects will see first oil later than originally set; Fenja, Njord and Duva. The Gjøa (P1) remain unaffected.
Fenja was scheduled to be put into production by the end of 2021. The new schedule is early 2022.
The Fenja field (formerly known as the Pil and Bue discoveries) is an oil and gas field located 120 kilometers north of Kristiansund.
With resources of about 97 million barrels of oil equivalents, plateau production is projected to reach approx. 40,000 barrels of oil equivalents per day.
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The Duva oil and gas field is expected to produce around 30 000 boepd at its peak and holds recoverable reserves of 88 MMboe. First production was expected in late 2020 / early 2021. The new schedule is seeing first oil in the second half of 2021.
Neptune Energy will present the Duva field at the NCS Exploration – Recent Discoveries 2020 conference in Stavanger October 14-15th.
Njord is a former producing oil field which was expected to recommence production by the end of 2020. The new schedule estimates first oil in Q3 2021, and the field will produce until 2040.
The company is also targeting savings by deferring some of its exploration wells to 2021. Planned 2020 exploration wells include Sillimanite South (Netherlands) and Dugong (Norway).
TEXT: RONNY SETSÅ