Neptune Energy announced it has acquired a 38.75% equity interest from Spirit Energy in the Pegasus West discovery and surrounding acreage (P1724, P1727, P4257 and P2128) in the UK Southern North Sea.
Pegasus West was discovered in 2014 and is currently operated by Spirit Energy.
Entry by Neptune into the Pegasus West Area aligns interests in both the discovery and the Neptune-operated Cygnus gas facility (Neptune Energy 38.75% and operator, Spirit Energy 61.25%) enabling acceleration of the development of Pegasus West as a subsea tieback to the existing Cygnus field.
Neptune will work closely with Spirit Energy on front end engineering and design (FEED) studies in 2021 with the intention to reach a final investment decision by year end. Once sanctioned, Neptune would become operator of the development through to first gas and into production.
“The alignment of interests with Spirit Energy in the Pegasus West development offers material benefits of faster development, lower costs and lower carbon intensities as well as optimisation of production operations through our existing world-class gas production asset, Cygnus. Cygnus is strategically important for domestic gas supply to the UK and has one of the lowest carbon intensities on the UKCS, at less than 2kg per boe. The development of Pegasus West will ensure further UK low carbon gas supply, while opening up opportunities for development of other potential gas resources in the Greater Cygnus Area,” Neptune Energy’s Managing Director in the UK, Alexandra Thomas, said.
About Cygnus field
The Cygnus field is capable of supplying six per cent of the UK’s gas demand, enough to fuel 1.5 million UK homes. Neptune is operator of the Cygnus Alpha and Cygnus Bravo production facilities.
- The biggest natural gas discovery in the southern North Sea in over 30 years is now the largest single producing gas field in the UK, typically exporting over 250 million standard cubic feet of gas daily. Cygnus contributes six per cent of UK gas demand, supplying energy to the equivalent of 1.5 million UK homes. It has a field life of over 20 years.
- Two drilling centres target ten wells. Cygnus Alpha consists of three bridge-linked platforms: a wellhead drilling centre, a processing/utilities unit and living quarters/central control room. Cygnus Bravo, an unmanned satellite platform, is approximately seven kilometres northwest of Cygnus Alpha.
- Gas is exported via a 55 km pipeline. Cygnus connects via the Esmond Transmission System (ETS) pipeline to the gas-treatment terminal at Bacton, Norfolk. Neptune Energy has a 25% minority interest in ETS.
About Neptune Energy Group
Neptune Energy is an independent global E&P company with operations across the North Sea, North Africa, and Asia Pacific. The business had production of 142,000 net barrels of oil equivalent per day in 2020 and 2P reserves on 31st December 2020 of 601 million barrels of oil equivalent. The Company, founded by Sam Laidlaw, is backed by CIC and funds advised by Carlyle Group and CVC Capital Partners.