Oil and gas company Neptune Energy has started drilling on the Dugong exploration well in the Norwegian sector of the North Sea.

Since the Duva discovery in 2016, Dugong is the first operated exploration well that is being drilled by the company in the northern North Sea.

Located 158km west of Florø, Norway, the Dugong is at a water depth of 330 metres, and is close to the existing production facilities of the Snorre field. The reservoir lies at a depth of 3,250 – 3,400 metres.

Neptune Exploration & Development Norway director Steinar Meland said: “A discovery in Dugong could open up new and exciting opportunities in surrounding licences, making it an important well in establishing a new core area for Neptune in Norway.

“This activity underlines the importance of the region to Neptune’s geographically-diverse portfolio.”

Deepsea Yantai will be used to drill Dugong

The firm said that the drilling program involves a main bore with a down-dip side-track that is subject to the results of the main bore.

Deepsea Yantai, a new semi-submersible rig, which is owned by CIMC and operated by Odfjell Drilling, will drill the Dugong exploration well.

The Neptune Energy owns 40% stake and is operator of the Dugong exploration well, while its partners include Concedo with 20% stake, Petrolia NOCO 20%, and Idemitsu Petroleum Norge 20%.

Recently, the Norwegian Petroleum Directorate (NPD) has granted Neptune Energy a drilling permit for two wildcat wells in the North Sea offshore Norway.

The drilling permit has been given to the wells 34/4-15 S and 34/4-15 A in production licence 882 in the North Sea.