Neptune Energy has awarded a contract worth more than $100 million to Tenaris, under which the company will provide equipment and support services for Neptune’s drilling activities on the Norwegian continental shelf.
Neptune said the contract covers the manufacture, transport, handling and repair of a wide range of casing materials used in offshore drilling activities. Initially, this will include support for an exploration well and an appraisal well in the Neptune-operated Gjøa area in the Norwegian Sea in 2023.
The five-year contract has two two-year extension options, Neptune revealed in its statement.
“The new contract strengthens our partnership with Tenaris, which has supported our strong operational and safety performance across all our drilling activities,” said Neptune’s head of supply chain management and logistics in Norway , Kjell-Petter Schou Andreassen.
“We look forward to continuing to add value to Neptune’s operations in the coming years with our global industrial footprint, state-of-the-art technology and our portfolio of advanced and low-carbon products,” added Tenaris Norway Country Manager , Christer Andersen.
The contract between the parties entered into force in mid-April 2023.
In Norway, the company recorded average production of 67.0 kboepd in the first quarter, reflecting strong operating performance from the Gjøa, Duva, Snøhvit, Fram and Gudrun fields, Neptune noted in its first quarter report, published earlier this month. During the period, a gas turbine generator failure temporarily reduced Snøhvit’s production in March and the A-08 well was shut in at Gudrun, the company noted in the report.
At the end of 2022, the Njord project came online, but production was affected by problems with important processing equipment during the ramp-up phase, Neptune said in its first-quarter report. By the end of March, these issues were resolved and production has performed well since then, he added. In April, the Hyme and Bauge links were commissioned and the Neptune-operated Fenja project started, increasing Norway’s total net production to more than 80 kboepd, the company continued.
Neptune saw its first-quarter net profit fall to $205.9 million from $493.6 million in the corresponding quarter last year.
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