Neptune says Makes Largest Oil Discovery in Norway this Year

Neptune Energy has said it has made the largest oil discovery in Norway so far this year at its Dugong well in the North Sea.

After announcing preliminary results in July, the company on Tuesday confirmed the commercial discovery of oil at the Dugong well (PL882).

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).

"In addition, the Dugong discovery has significantly de-risked another prospect in the license 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 said.

Neptune Energy is the operator of the Dugong license with a 40% ownership interest. Other partners are Concedo (20%), Petrolia NOCO (20%), and Idemitsu Petroleum Norge (20%).

Neptune Energy’s Managing Director in Norway, Odin Estensen, said: “This is a significant discovery and strategically important for Neptune Energy in this region. 

"It underlines our commitment to continue investing in activities in the Norwegian sector which is an integral part of our geographically-diverse portfolio.

"Dugong may also open up additional opportunities in the surrounding licenses, with the potential for a new core area for Neptune in Norway."

Dugong (PL 882) is located 158 kilometers west of Florø, Norway, at a water depth of 330 meters, and is close to existing production facilities. The Dugong prospect consists of two reservoirs that lies at a depth between 3,250 – 3,500 meters.

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.  

Dugong was drilled by the Deepsea Yantai, a new semi-submersible rig, owned by CIMC and operated by Odfjell Drilling. The well will be plugged and abandoned.