The company stated that acquisition aligns interests in both the discovery and the Cygnus gas facility

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Pegasus West was discovered in 2014. (Credit: gloriaurban4 from Pixabay)

Neptune Energy has announced the acquisition of a 38.75% stake in the Pegasus West discovery and surrounding acreage in the UK Southern North Sea.

The stake has been bought from Spirit Energy, which is the operator of Pegasus West.

Discovered in 2014, the Pegasus West lies in the block 43/13b in the Southern North Sea. It is located in a water depth of around 28m.

Neptune Energy stated that acquisition aligns interests in both the discovery and the Cygnus gas facility.

The deal is expected to help in speeding up the development of Pegasus West as a subsea tieback to the existing Cygnus field, which is located within UK Continental Shelf blocks 44/12a and 44/11a in 23m of water.

Neptune Energy is the operator of the gas field with a 38.75% ownership stake and the remaining 61.25% stake is owned by Spirit Energy.

Neptune Energy UK managing director Alexandra Thomas said: “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 intends to work with Spirit Energy on front end engineering and design (FEED) studies on the Pegasus West development in 2021.

A final investment decision is targeted to be reached by the end of this year.

Neptune is expected to become operator of the development through to first gas from the discovery and into production.