Neodrill announces projects with Neptune Energy

Neodrill has signed a frame agreement and announced its first two projects with Neptune Energy. Two CAN-ductors were installed in April on two of Neptune Energy’s exploration wells in the Norwegian North Sea. In August, Neptune Energy and its partners announced the commercial discovery of oil at the Dugong well (PL882) in the Norwegian sector of the North Sea, one of the largest discoveries in Norway this year.

The first campaign in April was the first delivery of a two-well campaign by Neodrill. It included one CAN-ductor installed on the Dugong well and another exploration well in the area. The second campaign is scheduled for December and includes one CAN-ductor on the Tail well and another on the Appraisal well. The ability to use one installation vessel across both wells results in cost savings, efficiency gains and reduced emissions.

The CAN technology has already been proven to reduce environmental impact by up to 44% on top hole activity, compared to conventional technologies. With one vessel being used for two wells, Neptune Energy’s overall emissions across the two campaigns will be substantially reduced.

“Neptune was pleased with the first installation of CANs earlier this year and are happy to be able to use this technology again on our Dugong drilling operations commencing in January 2021. Using the CAN technology enables lower environmental impacts compared to the conventional drilling, which is of high importance for our company,” said Thor Andre Løvoll, Director of Drilling & Wells, Neptune Energy Norge.

Mr Løvoll explained that the environmental impacts are mainly lower due to the reduced rig time and need for casing materials. “We estimate a reduced rig time of 2-4 days per well, which also reduces the drilling cost for the Dugong Appraisal and Tail well,” he added.

“We are seeing a real tipping point in the industry at the moment as the movement away from traditional technologies gains traction,” said Jostein Aleksandersen, Neodrill CEO. “Clients want to see a new, dynamic approach that removes any unnecessary risks and costs to projects. What this new project shows is that the belief and confidence in our value case to deliver efficiencies, in terms of cost and environmental benefits, is real. We look forward to continue working with Neptune Energy over the coming months on this second campaign.”