Contract sets clock running for new Norwegian production

May 18 (UPI) -- A contract for a part of the platform that will be used at the Gjøa field in the North Sea puts it closer to a 2021 start date, Neptune Energy said Friday.

One of the major assets for Neptune is the Gjøa field in the Norwegian waters of the North Sea. For an undisclosed sum, Neptune awarded Norwegian construction firm Rosenberg WorleyParsons a contract to build part of the new components for the Gjøa in the North Sea.

The field will be tied into the nearby Nova development, which is operated by German energy company Wintershall. Neptune operates the Gjøa license.

"The tie-back from Nova validates our initial design for Gjøa as a hub for the wider area, and we look forward to continued cooperation with Wintershall and other project partners." Neptune Energy's Country Director for Norway Anne Botne said in a statement.

A wildcat well, one drilled into an area not previously known to contain oil or natural gas, in Gjøa revealed up to 69 million barrels of oil equivalent reserves.

Neptune's oil and gas arm was established three years ago by equity funds Carlyle Group and CVC Capital Partner, and now China Investment Corp., to build up a strong position in the North Sea. The company is led by Sam Laidlaw, the former CEO at British multinational utility company Centrica.

For undisclosed terms, Neptune in February acquired ENGIE Exploration and Production International, which gave it a global footing in basins from the North Sea to North Africa.

Neptune estimates Gjøa could produce 60 million more barrels of oil equivalent and has the capacity to handle extra resources. The installation of the new module for Gjøa is scheduled for the first half of 2020. Production begins in 2021.