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EnQuest may retire two North Sea fields following latest downturn

EnQuest may retire two North Sea fields following latest downturn

 

EnQuest has been reassessing its North Sea assets and related spending plans in light of the current lower oil price.

It now looks as if production will not re-start at the mature Heather and Thistle/Deveron fields in the UK northern North Sea, which collectively generated around 6,000 boe/d last year.

At the same time, EnQuest plans decisive actions to lower its cost base through reduced opex/capex. For 2020, it is targeting a 30% cut in opex to $375 million, and in 2021, unit operating expenditures of $15/boe and cashflow breakeven of c.$35/boe in 2021.

So far this year the overall production performance has been solid, the company added, averaging around 65,500 boe/d, with the Kraken field ahead of expectations at roughly 39,000 b/d.

Much of this year’s program relates to the recently concluded drilling at Magnus in the East Shetland basin and two wells at Kraken.

Source: offshore-mag.com

Published: 19-03-2020

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