Neptune Energy announced appraisal drilling commenced Monday on the Dugong discovery, one of the largest on the Norwegian Continental Shelf in 2020.
The well is being drilled by the Deepsea Yantai, a semi-submersible rig owned by CIMC and operated by Odfjell Drilling.
The Dugong discovery, in Production License 882 in the Norwegian sector of the North Sea, is estimated to contain recoverable resources between 40-120 million barrels of oil equivalent (boe), according to operator Neptune, which holds a 45% stake in the license.
"This exciting new discovery is located close to existing infrastructure and has the potential to become a new core growth area for Neptune in Norway," said Neptune Energy’s Managing Director in Norway, Odin Estensen, who added the company is dedicated to growing its presence in Norway.
Dugong is located 158 kilometers west of Florø, Norway, at a water depth of 330 meters, and is close to the existing production facilities of the Snorre field. The reservoir lies at a depth of 3,250 - 3,400 meters.
Neptune Energy’s Director of Subsurface in Norway, Steinar Meland, said, "The main objective of the appraisal well is to collect the data necessary to help provide certainty related to the reservoir, structure and recoverable resources, so the partnership can optimize the development solution.
"Data from this well will also provide valuable information to help de-risk additional exploration and development opportunities in the license and in the surrounding area."
Neptune and its Dugong partners Petrolia NOCO (20%), Idemitsu Petroleum Norge (20%) and Concedo (15%) plan to drill an exploration well in the license in the third quarter of 2021, targeting the Dugong Tail prospect. Neptune extended its contract for the Deepsea Yantai in January.