EurOil: Neptune stung by outages

Northwest European producer Neptune Energy suffered a 22% year-on-year decline in oil and gas output in the first quarter as a result of outages across its portfolio.

The company’s supply averaged 125,700 barrels of oil equivalent per day in the three-month period, versus 162,100 boepd a year earlier. Neptune was hit by the closure of the Equinor-operated Snohvit field last autumn after a fire broke out at the Hammerfest LNG plant that receives its gas. There was also a planned shutdown of the Jangkrik FPU in Indonesia in January, as part of the Merakes development programme, and an outage at the Touat field in Algeria.

Announcing its results, Neptune said it expected to increase production “materially” in the fourth quarter, thanks to first flow from the Duva field. When including production-equivalent “insurance” as a result of Snohvit closure, Neptune’s output in the first quarter was 139,000 boepd, it said.

Neptune also brought on stream the Gjoa P1 project offshore Norway in the first quarter and the Merakes development in Indonesia is now operational, CEO Jim House said.

“We remain on track to deliver material production growth, while generating strong cash flows that will support further long-term portfolio development,” House said.

In UK news, London-listed Angus Energy has struck a loan deal with Mercuria Energy Trading and Aleph to fund its onshore Saltfleetby gas field.

Saltfleetby was formerly the UK’s largest onshore gas field but was shut down in 2018 after most of its resources had been extracted. Angus took a 51% share in the project in Lincolnshire last year, while its partner Saltfleetby Energy controls the remaining 49% interest.

First gas from Saltfleetby is expected in the fourth quarter, with its initial sales priced at relatively high winter gas prices. The company will drill a third production well at Saltfleetby and then reconnect two existing wells. Its initial plateau production rate will be 10mn cubic feet (283,000 cubic metres) per day.

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