OKEA Buys Into Calypso Prospect Near Draugen Field

Norwegian oil company OKEA will acquire an interest from Neptune Energy in an offshore block in Norway containing the Calypso prospect, with a potential of up to 37 million barrels of oil.

OKEA will take a 30% working interest in the production license PL938, and Neptune will remain the operator with a 30% working interest in the Norwegian Sea license.

According to OKEA, the offshore block sits less than 10 kilometers north-west from its Draugen field, and directly north of the Bauge and Hyme fields.

The partners have committed to drill an exploration well on the Calypso prospect in the license and the plan is to drill in late 2021 or 2022. As part of the agreement, OKEA will carry a portion of Neptune’s costs for the well.

Andrew McCann, SVP Subsurface & Wells in OKEA: "Calypso is an attractive prospect close to Draugen with a potential of up to 37 million barrels of oil.

• From Marginal to Major

"As operator of Draugen we are keen to find resources in the nearby area with the potential to be developed through our existing infrastructure and Calypso fits this exploration strategy well. We look forward to working with the operator and other licensees to ensure an efficient exploration well and further activity in the license.’

Draugen s has been in production since 1993 with peak output achieved in 2001. OKEA bought its interests in the Draugen and Gjøa offshore fields in Norway for NOK 4.52 billion from Shell in 2018.

Commenting on the Calypso deal, Erik Haugane, CEO of OKEA said: "This transaction further diversifies OKEA’s exploration portfolio and strengthens our position in the Draugen area. If a discovery is made in the license, we will work to ensure an efficient development given our strategy and experience with low-cost field development of smaller discoveries.

"Coming only two months since we acquired the Aurora discovery from Equinor, this transaction further demonstrates our focus on building our portfolio around our key production hubs."

The other licensees in the offshore block are Vår Energi AS (20%) and ConocoPhillips Skandinavia AS (20%).