document: Lundin has completed its deal, reported in early March 2020, to acquire Neptune's 20% interests in PL 886 and PL 886 B. The transfer is effective from 30 April 2020. PL 886 covers blocks (or parts of) 6306/6, 6306/8 and 6306/9 and PL 886 B lies adjacent to the northeast, covering parts of blocks 6307/1 and 6307/4. Lundin plans to drill a well on the Melstein prospect, which is targeting a new play with potential recoverable reserves of 160 MMboe, in PL 886 in 2021. It is also understood that there is a prospect in PL 886 B called Tarva, but no drilling plans have yet been released for this.  The closest field to these licences is Fenja where development is progressing towards an onstream date of Q4 2021. Neptune will develop the Pil accumulation initially, using a subsea tieback to the Njord A platform. Recoverable reserves are approximately 97 MMboe. The project will use two subsea templates hosting three horizontal producers, two water injectors and a single gas injector. The drilling plan has been modified due to the effects of coronavirus disease 2019 (COVID-19) and drilling will now take place over two years in three phases. Bue represents upside and will be confirmed by Pil development wells before it is potentially brought into production at a later date. Oil will be processed on Njord A before being transferred to Njord B for onward export via shuttle tanker. Gas will initially be re-injected into the Pil reservoir and will later be exported via Njordâs connection to the Asgard Transport System. Plateau production is expected to be approximately 40,000 bo/d and gas production expected to peak at approximately 100 MMcf/d between 2025 and 2036. Total investment costs are approximately NOK 10.2 billion (USD 1.22 billion), with 16-year life forecast.  Upon completion of the deal, PL 886 and PL 886 B interests are divided between Lundin Energy Norway AS (60% + operator), Petoro AS (20%) and Spirit Energy Norway AS (20%).
summary: Lundin has completed its deal, reported in early March 2020, to acquire Neptune's 20% interests in PL 886 and PL 886 B. 