Dugong oil discovery has 40-120mboe estimated reserves, says Neptune Energy

Neptune Energy said that the Dugong oil discovery in the Norwegian North Sea announced last month is of commercial significance with estimated reserves of  6.3-19.0 million standard cubic meters (MSm3) of recoverable oil equivalent, or 40-120 million barrels of oil equivalent (boe).

The company, which is the operator of the Dugong licence in PL882 with a 40% stake, claimed that it is the largest discovery to have been made in Norway so far in 2020.

According to Neptune Energy, the Dugong oil discovery has considerably de-risked another prospect in the licence, which is estimated by it to hold 5.2 million standard cubic meters (MSm3) of recoverable oil equivalent, or 33 million boe. Neptune Energy’s estimate of the total resource potential in the PL882 licence has now gone up to 153 million boe.

Odin Estensen – Neptune Energy Managing Director in Norway 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 licences, with the potential for a new core area for Neptune in Norway.”

Dugong is located 158 kilometres west of Florø at a water depth of 330 metres, and is in proximity to existing production facilities of the Snorre field. The prospect features a couple of reservoirs that lie at a depth between 3,250-3,500 metres.

Steinar Meland – Neptune Energy Director of Exploration & Development in Norway 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 Dugong oil discovery was made by CIMC’s Deepsea Yantai new semi-submersible rig, which was operated by Odfjell Drilling. The other stakeholders in the Dugong well are Concedo, Idemitsu Petroleum Norge, and Petrolia NOCO, which all hold 20% interest each.