Kraken on track

Mar 26, 2014

North Sea independent EnQuest plans to spend about US$1 billion on new projects in 2014, including about $400 million on the Kraken FPSO development.

A further $200 million will be spend on the Alma/Galia development, due on stream in H2 this year.

EnQuest said the Kraken FPSO development is progressing to plan. Read more: EnQuest gets Kraken approval - http://www.oedigital.com/component/k2/item/4424-enquest-gets-kraken-approval

The FPSO is expected to arrive in the conversion yard in Singapore on schedule in Q2 this year. First production is expected in 2016-2017, with gross peak production of over 50,000 boe/d. Further appraisal drilling will be undertaken on a satellite to the west of the Kraken field in Q3 2014, to assess the upside potential of the field.

Contracts for more than 60% of the project have now been signed, including the major supplier arrangements. Deltamarin signed a contract with Bumi Armada for the basic design of a floating production, storage and offloading (FPSO) unit for the Kraken FPSO.

Outlining plans for this year, EnQuest said it plans to deliver more than 15 wells in 2014. The drilling program includes a new production well on Don Southwest, a workover of a production well on the Greater Kittiwake Area, an ongoing intervention program on Thistle, three production wells and one injection well on Alma/Galia, and the restart of drilling on Heather for the first time since 2006, with two sidetracks and two workovers.

Alma/Galia is set to generate an initial net peak production of about 3000 boe/d. Work on the EnQuest Producer FPSO, which will produce Alma/Galia, is ongoing at OGN's yard in Newcastle, northeast England. Read more: http://www.oedigital.com/component/k2/item/4429-ogn-picks-up-fpso-job

The 2014 exploration and appraisal drilling program includes wells on Cairngorm, a Kraken satellite, and Avalon in the UK. Internationally, in H2 2014, a non-operated well is being matured for drilling in the Sabah area, offshore Malaysia.

Options for a proposed Scolty/Crathes development will also be assessed. On Don North East, EnQuest plans to submit a field development plan in relation to Area 24, to include at least one production well.

EnQuest will also be assessing licenses awarded in the Norwegian 2013 Awards in Pre-defined Areas licensing round (production license 758 (Rosslyng), with EnQuest as the operator and having a 35% interest, and license 760 (Chinook), with Total as the operator, and both Total and EnQuest having 50% interest).

EnQuest’s 2013 production rose 6.2%, compared to 2012, averaging 24,222 boe/d. For 2014, EnQuest expects production to be 25,000-30,000 boe/d, an increase on its previous estimate.

Reserves increased 66MM boe to 194.8MM boe. Revenues were $961.2 million.