EnQuest To Develop Two North Sea Oil Fields

Published at 12:46PM - 09/12/15

UK based EnQuest is looking to develop two North Sea oil fields in 2016, in a bid to increase its offshore oil and gas production by at least 33%.

The Aberdeen based firm has already increased its North Sea production by 40% over last year, to a current production rate of 41,000 barrels a day. The company’s 2016 target will put its daily oil production at around 48,000.

Scolty & Crathes Fields

As part of reaching the production target, EnQuest aims to start developing its Scolty and Crathes North Sea oil fields, offshore Aberdeen.

The company plans to start drilling during the middle of 2016, and aims to produce first oil by the first half of 2017.

Asset Sale

EnQuest has confirmed that it’s looking to sell off stakes in a number of its developing and producing North Sea assets, in bid to finance the two field developments and to restructure some of the company’s existing debt.

The Heather / Broom field is first on the EnQuest’s sales list, with the company’s chief executive Amjad Bseisu stating that he is willing to farm-out between 20% to 30%.

The field is currently operated by EnQuest, via its 63% stake and produces around 4,450 barrels of oil per day. Other stake holders include Ithaca and Wintershall.

Also currently on the table is a 60% stake in the underdevelopment Kraken development and a 10% to 20% stake in the Scolty and Crathes fields. Kraken is currently on schedule to see first oil in the first half of 2017.

Speaking on the announcements, Amjad Bseisu said: “EnQuest is addressing its priorities in this low oil price environment: delivering on production and execution targets, streamlining operations and strengthening the balance sheet.

We have continued to reduce operating costs which are now expected to be $31-32/bbl in 2015 and are currently expected to be in the $26-28/bbl range for 2016, ahead of our earlier expectations.

With 2016 capex focused on Kraken, net debt is planned to increase during 2016 ahead of Kraken first oil.  Capex will be substantially reduced in 2017 and will further reduce in subsequent years.  Debt repayments are anticipated to be made from H2 2017 onwards.”