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 ‘Numerous choices’ on the desk as EnQuest pushes forward with Bressay and Bentley prospects
November 19, 2022

‘Numerous choices’ on the desk as EnQuest pushes forward with Bressay and Bentley prospects

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Operator EnQuest (LON: ENQ) is exploring a variety of choices because it attracts up plans to develop two main North Sea prospects.

The London-listed firm accomplished its acquisition of the Bentley Subject, round 85 miles south-east of Shetland, from Whalsay Vitality in November.

First introduced in April 2021, the deal was price as much as £30 million.

Positioned close by is the Bressay prospect, which EnQuest acquired a 40.81% working stake in from Equinor for round £13m final 12 months.

Each prospects are located near EnQuest’s Kraken FPSO, a possible tie-back host for Bressay, which can be developed first.

In its 2021 outcomes, shared on Thursday, EnQuest stated its acquisitions of the 2 fields added nearly 250 million barrels of oil equal of 2C sources to its reserves.

A discipline growth plan (FDP) for Bressay can be superior this 12 months, although Jonathan Swinney, the corporate’s chief monetary officer, wouldn’t be drawn on when it will likely be up and working.

© Equipped by EnQuest
Jonathan Swinney

He stated: “We’re taking a look at varied choices round Bressay, whether or not it’s a tie-back to Kraken or whether or not we use the EnQuest Producer. We’re working with our companions across the prospect. I’m not going to decide to a selected time on an FDP however we’re working very arduous on it.

“There was large worth in Bressay anyway, even in a $55 oil world. The one factor we’re not going to do is an enormous growth kind possibility. It’s going to be rather more about utilisation of present services and ensuring we’re doing that in a capex price environment friendly method.”

Equinor nonetheless holds a 40.81% curiosity in Bressay, with Chrysaor holds the remaining 18.38% stake.

An preliminary analysis of the event potential for Bentley, one of many North Sea’s largest untapped discoveries, is because of kick off within the first quarter of this 12 months, EnQuest stated.

On whether or not the corporate was taking a look at electrification to cut back the environmental influence of the 2 fields, Mr Swinney, who will be part of Tullow Oil later this 12 months, stated it’s not on the “quick agenda”.

He added: “Electrification tends to be checked out on the premise of larger hubs, and also you want a sizeable quantity of manufacturing to make it work.”

One other consideration for EnQuest is what to do with its EnQuest Producer FPSO, which is sitting heat stacked at Port of Nigg whereas the corporate evaluates choices.

The vessel has been within the Cromarty Firth since 2020 after it completed producing oil from the Alma and Galia fields.

Mr Swinney says the popular possibility is to make use of the EnQuest Producer on an asset, however that the corporate is open to gives for the FPSO, including that there was curiosity in taking it on.

He stated: “We’ve at all times maintained that we wish to apply it to an asset and Bressay and Bentley could also be an possibility for it. Clearly, if you’ve received companions they need to be joyful about it as nicely however the good factor is its low price. It’s already there. It’s constructed

“It could want some modifications however essentially, it could possibly be our fairness ticket into one other discipline.

“All of that’s on the desk, in addition to a straight sale. If somebody involves us and needs to purchase it then we’ll positively contemplate that, so long as the supply is wise.”

He added: “We’ve received conversations ongoing and we’ve had talks round varied choices. From my perspective, in a extra optimistic oil value setting and when authorities is supportive of vitality safety, it offers us the optionality of preserving maintain of it.”

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