Neptune Energy Group has entered into an agreement with Apache North Sea (ANSL), a wholly owned subsidiary of Apache, to acquire stakes in two oil fields in the UK Central North Sea.

Image: An offshore oil and gas drilling platform. Photo: courtesy of QR9iudjz0/

The company will acquire Apache’s 35% working interest in the Seagull development and a 50% working interest in the Isabella prospect. Both the assets are operated by ANSL.

The acquisition is expected to provide Neptune with a low cost, near-term development in close proximity to existing infrastructure.

It will also offer a significant undrilled prospect in the Central North Sea.

Expected to begin during next year, the Seagull development will include a multi-well subsea tieback project to existing nearby facilities.

Production from the field is expected to begin prior to the first quarter of 2022.

Expected to be completed in 2018, the proposed transaction is subject to the customary regulatory approvals.

Planned drilling operations on the Isabella prospect, which is considered to be one of the largest undrilled exploration opportunities in the Central North Sea, will begin in 2019.

Neptune Energy Group chief executive officer Jim House said: “In line with our strategy of expanding positions in key jurisdictions, Seagull and Isabella are both high quality opportunities which complement our existing assets within the broader North Sea theatre of operations.

“We are extremely pleased to announce our second acquisition since the completion of the ENGIE E&P transaction last February.

“The signing of the SPA with Apache, which follows the announcement in June of our agreement to acquire VNG Norge, underlines our determination to continue building a leading international independent E&P company.”

In June, Neptune announced to acquire VNG Norge’s portfolio of production, development and exploration assets on the Norwegian continental shelf.

The portfolio of VNG Norge included 42 licences, five producing fields and three development projects.