Neptune Energy has acquired a 38.75% stake from Spirit Energy in the Pegasus West discovery and surrounding acreage in the UK Southern North Sea, according to Neptune’s press release.
The acquisition aligns interests in both the discovery and the Neptune-operated Cygnus gas facility, helping speed up the development of Pegasus West as a subsea tieback to the existing Cygnus field. Neptune Energy is the operator of Cygnus field with 38.75%, while Spirit Energy holds 61.25%.
The two companies will work on front end engineering and design (FEED) studies in 2021 in order to reach a final investment decision by the end of 2021. Once sanctioned, Neptune is expected to become operator of the development through first gas and into production.
Neptune Energy’s Managing Director in the UK, Alexandra Thomas, said “The alignment of interests with Spirit Energy in the Pegasus West development offers material benefits of faster development, lower costs and lower carbon intensities as well as optimization of production operations through our existing world-class gas production asset, Cygnus.
“Cygnus is strategically important for domestic gas supply to the UK, and has one of the lowest carbon intensities on the UKCS, at less than 2kg per boe*. The development of Pegasus West will ensure further UK low carbon gas supply, while opening up opportunities for development of other potential gas resources in the Greater Cygnus Area.” he added.
It is worth noting that Pegasus West was discovered in 2014 and currently operated by Spirit Energy.