Offshore Energies Magazine - Issue 55 Spring 2023

Cygnus' 10th well starts up The partners in the Cygnus gas field (southern UK North Sea) have begun production from their 10th well. And drilling the 11th well is now underway, operator and 38.75% shareholder Neptune Energy said in a February 1 statement. The field meets the needs of 2mn households over the course of the year, with one of the lowest carbon intensities on the UKCS, at about 4 kg CO₂/barrel of oil equivalent. The other partner is the Centrica-controlled producer Spirit Energy. More wells are being planned. Neptune said that domestic gas production was "crucial" for UK energy security. The drilling operation was carried out by Borr Drilling’s Prospector 1 jack up rig. It is the first in its fleet that can cut emissions and particulates from operations to almost zero. Deltic/Shell report SNS gas bonanza Shell has found gas with its exploration well 41/05a-2 on Licence P2252 in the southern North Sea, 30% partner Deltic Energy said in a London Stock Exchange announcement January 11. It also flowed good quality black oil, which analysts said could provide upside. Deltic estimates that ultimate recovery is 302bn ft of gas, in line with prior guidance. Deltic CEO Graham Swindells said: "We are very pleased to have encountered hydrocarbons in the Pensacola exploration well at this intermediate stage of well operations. We now look forward to working with the operator on the well testing programme, and will update the market once that programme is completed." One-Dyas is the third partner, with 5% stake. The well will now be plugged and abandoned. Commenting on development, an analyst said appraisal drilling is possible next year; front-end

Exploration & Production approach, it said. Mr Revie’s role will be to oversee the integration of those services. Mr Revie, who joined ASCO in 2018 as head of marine services, said: "Having worked with ASCO for several years across our specialist business lines and witnessing how it has developed in that time, I am looking forward to supporting us through this next phase of company progression." The Benriach well in the Greater Laggan Area (GLA), operated by French major TotalEnergies, has now been spudded by Transocean Barents . The well is targeting recoverable resource of 638bn ft³ gross, with Kistos holding a 25% stake. In a late March stock-exchange statement, CEO Andrew Austin said he was "excited" that the well is underway as it could add significant reserves." The dry hole post-tax cost net to Kistos is forecast to be £2.5mnn as a result of Kistos' tax paying position and the enhanced investment allowances from the Energy Profits Levy, it said. Kistos bought into GLA from TotalEnergies last year. Mr Austin also drew attention to the "aggressive" UK and Dutch tax regimes, saying they were "to the detriment of Europe's future energy security." Soon after, Kistos bought Mime, a Norwegian producer, its first foray into that country's upstream. He said Kistos would do what it could to maximise recovery at these high commodity prices, using the EPL investment allowance where possible, and keep an eye out for acquisitions, But "while we continue to actively look for value accretive acquisitions in the North Sea and Europe, the asymmetry created by these tax regimes makes this challenging." Kistos updates on E&P & EPL

engineering design in 2025; gas export route selection in 2026; and first sales gas in 2027.

Mergers & Acquisitions

Equinor's Suncor deal builds Rosebank stake Norway’s state controlled energy giant Equinor has agreed to pay $850mn for Suncor, it said March 3, boosting UK production by 15,000 barrels/day this year subject to regulatory approvals. The transaction includes a non operated interest in the producing Buzzard oil field (29.89%), an additional operated interest in its operated Rosebank development (40%) and Suncor’s UK employees who work with these assets. The price includes $250mn payable if Rosebank goes ahead: the partners hope to take a final investment decision in 2023. It said the deal fitted with its strategy of optimising its portfolio and deepening in core countries. "We are building on our longstanding position as a broad energy partner to the UK, strengthening our position as a reliable energy provider in Europe, while continuing to deliver on our ambition of becoming a net-zero company," it said. Equinor plans to invest billions in crucial UK energy infrastructure, including offshore wind, carbon capture and storage, hydrogen, power, and oil and gas. Last year Equinor supplied the equivalent of 29% of the UK’s total natural gas demand. Serica buys Tailwind UK explorer Serica Energy has bought Tailwind Energy Investments following a vote at its general meeting, it said in a January 27 London Stock Exchange announcement. The deal completed in March. The buyer's hopes had a boost late February with the positive results of the Dana-operated Gannet GE-04 well.

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