EnQuest confirmed that its Kraken floating production and storage offloading unit (FPSO) arrived in the North Sea, set to deliver first oil in Q2 2017.
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Image of EnQuest. |
The US$2.6 billion FPSO departed Singapore late last year in November.
The company revealed its latest milestone in its operations update today (24 January), along with an increase to its average production for 2016 of 8.7%, and an 11.3% jump in the UK North Sea.
EnQuest also announced a major deal with BP for the Mangus oil field in the North Sea earlier today, in which the company will take over operatorship and 25% stake in the field, with the option to take full ownership in the future.
This year, the company is anticipating its production to average 45,000-51,000 boe/d, however, it will be dependent on the first oil at Kraken.
It capex will decrease this year to $375-425 million, of which the majority will be invested in the development of Kraken.
"EnQuest is delivering reductions in operating and capital expenditure and we continue to streamline our operations. Our low cost operating structure and our low-cost approach to operatorship are integral parts of our way of doing business – whilst always retaining safe operations as our number one priority,” Amjad Bseisu, EnQuest CEO said.
“The average production of 39,751 boe/d in 2016 included good performance at Heather/Broom and at PM8/Seligi with a promising start after first oil from Scolty/Crathes. Delayed and extended third party shutdowns reduced production at the end of the year, and productivity from Alma/Galia has been negatively impacted by well performance including ESP reliability. Discussions with the ESP supplier on rectification plans are ongoing. The Kraken development remains under budget and on schedule for first oil in Q2 2017," Bseisu concluded.
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