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.
Read more: Deltamarin on Kraken - http://www.oedigital.com/component/k2/item/4980-deltamarin-on-kraken-fpso Bumi inks Kraken deal - http://www.oedigital.com/component/k2/item/4653-bumi-inks-kraken-deal
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.