North Sea Discovery Ownership In Dispute

Published at 08:18AM - 05/07/16

Dana Petroleum is contesting the ownership of the Eagle exploration well in the UK Central North Sea, following a recent discovery confirmed by the UK-based EnQuest.

According to Dana Petroleum, before EnQuest started drilling the Eagle exploration well, Dana had communicated to the company that it did not have the permission to do so.

“It remains Dana’s position that it has a 50% ownership interest in the Eagle well discovery and it has reserved its rights under the relevant license, under the Joint Operating Agreement and at law,” Dana Petroleum said in a statement.

North Sea Discovery Ownership In Dispute

EnQuest announced on July 1 that it had completed drilling the Eagle exploration well, and said it undertook the operation on a 100% working interest basis.

However, EnQuest argues that Eagle was acquired together with the company’s other interests in the Greater Kittiwake Area (GKA) back in February 2014.

EnQuest Oil And Gas Offshore Exploration & Production Map, North Sea
EnQuest Oil And Gas Offshore Exploration & Production North Sea Map

At the time, EnQuest acquired a 50% stake and operatorship of GKA – the Kittiwake field and surrounding development – while Dana held the remaining 50%.

EnQuest had also acquired a 100% interest in the Kittiwake to Forties oil export pipeline, the company informed at the time.

“The company looks forward to the further evaluation of the Eagle results in due course”, Dana Petroleum stated further.

Greater Kittiwake Area Progress On Schedule

The drilling was undertaken by EnQuest in the second quarter of 2016 and results led the company to anticipate gross total recoverable reserves to be similar to those in the nearby Gadwall producing oil field, the company announced on July 1.

At the time, EnQuest said the drilling of the nearby Scolty/Crathes development wells had been completed ahead of schedule and under budget. The fields – approved and sanctioned with a net development cost of approximately US$125 million (£94 million) – will be tied back to the Kittiwake platform, where the production fluids will be processed and exported to shore via the Forties Pipeline System.