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Neptune Energy ‘assessing impact’ of Covid-19 on Seagull schedule

BP murlach
Murlach will be tied-back to the ETAP production hub

Neptune Energy is “assessing the impact” Covid-19 will have on the delivery of its 50million barrel Seagull development in the UK North Sea.

More than £30million of contracts have already been handed out for the project, due for first oil next year, but Neptune has recognised the virus will have an effect on it.

Seagull is planned as a tieback to BP’s ETAP installation, around 100miles east of Aberdeen, and is expected to produce 50,000 barrels of oil equivalent per day over 10 years.

However, BP said the schedule of work to prepare ETAP to accept Seagull is now “under review” due to “Covid-19 mitigation measures” and the postponement of maintenance on the Forties pipeline.

A Neptune spokesman said: “Neptune Energy is committed to the safe and successful delivery of the Seagull project.

“We recognise it is impacted by Covid-19 which has affected the domestic and global oil and gas industry, including supply chains and major infrastructure maintenance plans.

“We continue to work closely with our project partners, vendors and industry authorities to assess these impacts on the Seagull project schedule. Further updates will be shared in due course.”

Seagull was approved by Neptune in March last year, along with partners BP and Japex.

The pandemic and the subsequent oil price crash has led to sweeping deferrals of North Sea projects, with Oil and Gas UK estimating more than 50% of companies will defer at least half of their activities planned for 2020.

Last week BP confirmed its Clair South development, the third phase of its huge field in the west of Shetland, will be impacted.

Meanwhile Dana Petroleum has also decided to postpone its Platypus project in the Southern North Sea.

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