Neptune Extends Drilling Rig Contract

Neptune Energy Norge has extended its contract for the Deepsea Yantai semi-submersible rig, Odfjell Drilling Ltd and CIMC Raffles reported last week.

The contract extension adds two wells and ensures the rig will be fully occupied through this year, Odjfell noted in a written statement. The drilling contractor explained the extension will facilitate further work in the Dugong area, located on Production License (PL) 882 in the Norwegian sector of the North Sea.

Last summer, Neptune touted Dugong as the largest discovery in Norway to date in 2020. The company has estimated that Dugong holds from 40 to 120 million barrels of oil equivalent, and it has stated the discovery could open up “a new core area” for the company in Norway.

As Rigzone reported in October of last year, Neptune and its PL882 partners plan to drill a Dugong appraisal well and an exploration well targeting the Tail prospect. The Dugong appraisal and Tail exploration wells will apply technology that reportedly lowers the environmental impact on well top-hole activity.

Neptune has the option exercise another eight wells under the current contract, Odjfell concluded.

To contact the author, email mveazey@rigzone.com.