Neptune Energy has wrapped up its integration with VNG Norge to become the operator of the NOK10.2bn ($1.2bn) Fenja field development project in the Norwegian Sea, under the new name Neptune Energy Norge.
Image: Neptune Energy, the operator of the Gjøa field, has forayed into the Fenja field. Photo: courtesy of Neptune Energy.
The combination of Neptune Energy and the former VNG Norge business is expected to create one of the top five independent producers operating on the Norwegian Continental Shelf. Neptune Energy, through the acquisition of VNG Norge, added three producing fields, two development projects and 42 licenses to its existing portfolio.
The merger of Neptune Energy Norge with VNG Norge was completed earlier this month. The enlarged company is expected to create a strong platform with a broad operating skills-set in sub-sea development, drilling, exploration and production.
All the business of VNG Norge, including its stakes in production licenses, operatorships and employees have been transferred to Neptune Energy Norge.
Neptune Energy is the operator of the Gjøa field, which had a net production of 11.0 million barrels of oil equivalents last year. It is also an operator in the development projects Cara and P1 and overall has a portfolio of 75 licenses.
Neptune Energy country director Anne Botne said: “The transaction and integration of former VNG Norge adds a strong team as well as competitive growth assets to our portfolio on the Norwegian continental shelf. Fenja is our first development project in Norway.
“It will feature innovative solutions enabling production through long distance tiebacks to existing infrastructure, thus capturing value and reducing emissions in line with our strategy.”
“By leveraging Neptune Energy’s operational experience and existing contracts, we aim to realise additional opportunities and synergies from Fenja to our two other operated development projects in Norway, Cara and P1 in the North Sea.”
Located in Production License 586, 120km north of Kristiansund, the Fenja field is estimated to have recoverable resources of more than 100 million barrels oil equivalent (Pil reservoir).
The field is a subsea development, which will be tied back to the Njord A floating production facility for processing and export through the Njord B floating storage and offloading vessel (FSO).
First oil from the Fenja field development project is expected to be drawn in 2021.