Neptune Energy and its joint venture partners BP and JAPEX today announced TechnipFMC has been awarded an engineering, procurement, construction and installation (EPCI) Target Cost contract for the Seagull development oil project in the UK North Sea.

The Target Cost contract was awarded under a Global Alliance Agreement between TechnipFMC and Neptune Energy which was signed for an initial five-year term with options for further extensions.

Under the scope of the contract, TechnipFMC will construct and install the wellheads, Xmas trees, an umbilical, flowlines, a four-slot manifold, a subsea wye structure and a subsea control system.

The offshore construction campaign is scheduled to start Q2 2020.

Neptune Energy’s UK Managing Director, Pete Jones, said: 
“Seagull is an exciting project and shows what can be achieved through a collaborative and innovative approach. Using existing infrastructure and unlocking production, it fully supports the objectives of the Maximising Economic Recovery (MER) UK strategy.

“As operator, it not only provides us with the opportunity to demonstrate our capability to safely execute a technologically-challenging subsea development, but underlines our commitment to growing our operational footprint on the UKCS.”

Seagull is a high pressure, high temperature development located in the Central North Sea on UK licence P1622 Block 22/29C, 17km south of the BP Operated ETAP Central Processing Facility (CPF). Seagull will be tied back to the ETAP CPF partially utilising existing subsea infrastructure. Gas from the development will come onshore at the CATS processing terminal at Teesside, while oil will come onshore through the Forties Pipeline System to the Kinneil Terminal, Grangemouth.

The development is expected to initially produce around 50,000 barrels of oil equivalent (boe) per day (80 per cent oil) across its 10-year design life. Proved plus probable gross reserves are estimated at 50 million boe.

Work on the Seagull project has continued at pace since the Field Development Plan (FDP) was submitted to and approved by the Oil and Gas Authority (OGA) in March this year.

Neptune is the operator of Seagull and has a 35 per cent equity interest. Its joint venture partners are BP with 50 per cent and JAPEX with 15 per cent. Neptune acquired its 35 per cent interest in Seagull from Apache North Sea Limited in 2018.

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