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EnQuest seeking production boost from North Sea Kraken area

EnQuest seeking production boost from North Sea Kraken area

 

EnQuest expects to spend about $200 million this year on its E&P programs in the UK and off Peninsular Malaysia.

LONDON — EnQuest expects to spend about $200 million this year on its E&P programs in the UK and off Peninsular Malaysia.

The line-up includes two new wells in the second half of the year at the Magnus Field in the East Shetland Basin, following the five-yearly platform rig recertification, as well as EnQuest’s share of costs to complete the current four-well platform drilling campaign at CNOOC’s Golden Eagle Field in mid-2024.

Offshore Malaysia, the company plans three infill wells and three workovers, and while ahead of a return to drilling at Kraken in East Shetland Basin next year, EnQuest will purchase long lead items for two sidetrack wells.

Other projects include a new stabilization facility and an electricity power grid connection at the Sullom Voe oil terminal on Shetland and preparations for a future tieback of the Bressay field’s gas cap to Kraken. These include replacing the diesel that currently powers operations on the Kraken FPSO.

EnQuest has budgeted about $70 million for decommissioning this year, mainly for ongoing well P&A programs at the Heather and Thistle/Deveron fields in the northern UK North Sea.

In 2025, the company expects its capital-efficient investment to increase production, led by further low-cost, fast-payback platform drilling and well work at Magnus and PM8/Seligi, and the resumption of drilling at Kraken.

Work will likely continue on a technical solution to unlock 115 MMbbl of 2C heavy oil resources at Bressay, one of the UK’s largest undeveloped fields, including a potential gas tieback to Kraken under an initial development phase.

In addition, the company may seek to bring onboard an additional partner following the Viaro Energy/RockRose farm-in last year.

Finally, EnQuest expects unit margins to improve as the Kraken FPSO lease rate falls by about 70% from April 1, 2025.

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Published: 19-02-2024

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