Neptune Energy to double gas production from North Sea field, providing heat for 350,000 UK homes

Oil and gas firm Neptune Energy plans to double gas production from a North Sea field, providing heat for hundreds of thousands of homes.

The firm said it had been working closely with its partners to ramp-up output from the Duva field in the Norwegian sector of the North Sea, supporting increased supplies to the UK and Europe.

The partnership has worked closely with the Norwegian authorities to identify measures to help meet gas demand in Europe. This will enable an increase in gas production from Duva by 6,500 barrels of oil equivalent per day (boepd), from the first half of April.

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Duva is a subsea installation with three oil producers and one gas producer, tied back to the Neptune Energy-operated Gjøa semi-submersible platform. The gas is transported by pipeline to Scotland’s St Fergus gas terminal.

Duva is a subsea installation with three oil producers and one gas producer, tied back to the Neptune Energy-operated Gjøa semi-submersible platform. The gas is transported by pipeline to Scotland’s St Fergus gas terminal.

Neptune Energy’s managing director in Norway, Odin Estensen, said: “We are pleased that we, together with our partners and in cooperation with Norwegian authorities, will be able to supply additional and much-needed volumes of gas, enough to heat a further 350,000 UK homes per day.”

Duva’s overall production currently stands at 30 kboepd, of which 6,500 boepd is natural gas. Under the newly-agreed measures, daily gas production will double to 13 kboepd for an initial four to eight months.

Around 70 per cent of Neptune Energy’s Norwegian production is gas, and the company is investigating opportunities to ramp-up gas production from other fields within its portfolio.

Neptune, which was founded by former Centrica boss Sam Laidlaw, is a global exploration and production company with operations across Europe, North Africa and Asia Pacific.

Meanwhile, Wood, the Aberdeen-headquartered energy and engineering services group, has secured a three-year contract with Norwegian state-owned operator Gassco to support the transportation of gas from the Norwegian Continental Shelf to terminals across the UK and Europe.

The agreement will see Wood work closely with Gassco to renovate the gas receiving facilities through the provision of engineering, procurement and construction management services across gas receiving terminals in the UK, Belgium, France and Germany.

Craig Shanaghey, Wood’s president of operations across Europe, Middle East and Africa, said: “We are delighted to grow our relationship with Gassco and expand our operational footprint in Europe with this award which further propels our geographical and portfolio diversification.

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“With complete alignment to Gassco’s vision of securing energy supply, we will renovate and increase the efficiency of their onshore terminals, helping to ensure safe and efficient gas receipt across the UK and Europe and, in turn, providing critical energy security as we transition to a net-zero future.”

The contract will employ teams across Wood’s engineering hubs and the terminal sites in the UK and across continental Europe. The group operates in more than 60 countries, employing some 40,000 people.

Lars Fredrik Bakke, Wood’s vice president of operations in Norway, added: “We will bring our extensive experience in operating, maintaining, and upgrading critical energy infrastructure to ensure Gassco’s operations remain resilient.

“Our Norwegian team, with the support of our UK and global experts, will support the delivery of this contract, in turn securing local employment and strengthening Wood’s position as a leading engineering and operations partner for the energy industry.”

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