RCS - Neptune Energy Group - Neptune to store more carbon than emits by 2030

CarlyleAnnouncement

01/03/2022 11:15

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RNS Number : 1013D  Neptune Energy Group Holdings Ltd  01 March 2022

01 March 2022

 

Neptune Energy announces aim to store more carbon than it emits by 2030

 

Neptune Energy today announced its aim to go beyond net zero and store more
carbon than is emitted from its operations and the use of its sold products by
2030.

 

The company is currently progressing two carbon capture and storage (CCS)
developments in the Dutch and UK sectors of the North Sea that could see it
store more than 9 million tonnes of carbon dioxide (CO(2)) emissions per year
for third parties by the end of this decade. That would exceed its projected
direct emissions (Scope 1) and emissions from the use of its sold products
(Scope 3).

 

Neptune's aim will be supported by a refreshed strategy, focusing on lower
carbon energy production and integrated energy hubs.

 

1.    Lower carbon energy production: produce lower carbon gas and oil
safely and efficiently

Neptune will focus on electrification where it is economic to do so, and
continue to reduce emissions from its operations.

 

The company will continue to target production in its key producing regions,
maintaining its gas-weighted portfolio and lower carbon intensity. New gas and
oil developments that are consistent with its lower carbon strategy will be
prioritised, along with those that provide opportunities to integrate energy
systems.

 

Given Neptune's portfolio is lower carbon due to actions taken already,
further operational improvements will likely have only a modest impact on
Group emissions intensity. Neptune will therefore pursue electrification to
decarbonise some of its highest producing assets where it is economic do so
and where the regulatory regime is supportive. Consequently, its short-term
focus for electrification is in Norway.

 

By the end of 2022, more than 35 kboepd of Neptune's net annual production
will be electrified. With further projects planned in Norway, the company aims
to have around 50 kboepd electrified by 2027.

 

2.    Integrated energy hubs: utilise existing infrastructure and
capability to integrate energy systems

Neptune's integrated energy hub strategy provides an opportunity to drive
offshore decarbonisation, by extending the life of offshore assets and
repurposing them to facilitate CO(2) storage and hydrogen production, using
domestic, lower carbon intensive gas or wind power. By extending field life,
electrification could become more economic, helping decarbonise existing
production further. This strategy builds on the company's experience with CCS
in the Netherlands and Norway.

 

Neptune, with its partners, is currently developing the L10 CCS project in the
Netherlands, which could store up to 5mt of carbon per year. The company plans
to have the project FEED-ready by the end of 2022, with a final investment
decision due in 2023. First carbon injection could be in 2026.

 

Neptune is also pursuing a CCS storage and appraisal licence in the UK, and
further potential opportunities in the UK and Norway.

 

Through CCS, Neptune aims to store more carbon for third-party emitters than
is emitted from its operations and the use of its sold products by 2030.

 

At 6kg CO(2)/boe, the carbon intensity of Neptune's operated portfolio is
already among the lowest in the sector and ahead of the industry average of 15
kg CO(2)/boe. The methane intensity of its operated production is 0.02%, below
the industry average of 0.20% and Neptune remains on target to reach net zero
methane emissions by 2030.

 

Pete Jones, CEO of Neptune Energy, said: "Neptune has one of the lowest carbon
intensities in the sector due to the steps we have taken already to reduce
operational emissions. We have both the infrastructure and the experience with
electrification and CCS to now accelerate our ambitions.

 

"Gas will continue to play a crucial role in decarbonisation globally, while
also being vital for energy security. Our gas-weighted portfolio positions us
well and we will use this to integrate energy systems, increasing CO(2)
storage, electrification and hydrogen production, with the aim of storing more
carbon than we emit by 2030."

 

Neptune also today announced changes to simplify its executive management team
in line with its strategic priorities:

 

·    Armand Lumens will add IT to his current role as CFO. Having
delivered the key priorities of Neptune's digital transformation programme
successfully, Kaveh Pourteymour, currently CIO, will leave the business to
pursue other opportunities.

·    Philip Lafeber, currently VP, Operations for North Africa and Asia
Pacific, will take up the new role of VP, HSEQ & Technical Services, with
the responsibility for the technical assurance of HSEQ, projects and
engineering, operations and electrification, drilling and wells, and supply
chain and logistics. Mark Richardson, currently VP, Projects &
Engineering, will retire, having overseen the successful delivery of the Gjøa
P1, Duva and Merakes projects last year.

·    Neptune's UK and Norwegian businesses will be brought together and
report to Neptune's MD, Norway and the UK, Odin Estensen. Neptune will retain
its offices in both Aberdeen and Stavanger, with local leadership teams
remaining in country. Alix Thomas, currently MD, UK, will take up the role of
MD, Egypt.

·    Eko Lumadyo, currently MD, Indonesia, will take on the additional
responsibility for Neptune's Australia business, becoming MD, Asia Pacific.

 

- ends -

 

Notes to editors

Neptune's projected combined scope 1 and 3 emissions are 8.7 million tonnes of
CO2e in 2030. Less than 0.5% of Neptune's total scope 1, 2 and 3 emissions are
scope 2 emissions. We are working with our partners to calculate scope 2
emissions on an equity share basis during 2022.

 

Enquiries

 

 Media                                                                      Investors

 Gavin Roberts                                                              Will Arnstein

 +44 (0) 7704 308138                                                        +44 (0) 7760 783895

 gavin.roberts@neptuneenergy.com (mailto:gavin.roberts@neptuneenergy.com)   william.arnstein@neptuneenergy.com (mailto:william.arnstein@neptuneenergy.com)

 

About Neptune Energy Group

Neptune Energy is an independent global E&P company with operations across
Europe, North Africa and Asia Pacific. The business had production of 142,000
net barrels of oil equivalent per day in 2020 and 2P reserves at 31st December
2020 of 601 million barrels of oil equivalent. The Company, founded by Sam
Laidlaw, is backed by CIC and funds advised by Carlyle Group and CVC Capital
Partners.

 

More information: www.neptuneenergy.com (http://www.neptuneenergy.com)

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