EnQuest has said it remains committed to "building value" in the North Sea despite striking deals worth $833million to buy into four major licences in Malaysia.
The proposed acquisitions carry a maximum total consideration of $833million and would more than double EnQuest's output to 100,000 barrels of oil per day.
The Times reports analysts say the move should act as a warning to the UK government on the impact of "misguided policy decisions" such as the retention of the Energy Profits Levy.
The windfall tax hits oil and gas firms with an effective 79% tax on UK profits and is currently not set to be change until March 2030.
Jonathan Copus, EnQuest Chief Financial Officer, acknowledged that “fiscal volatility” in the UK had been a headwind for the entire industry, The Times reports.
He said: “Given the fact that we are talking about what should be a vitally important strategic resource that is underpinning energy security for the UK then I think what the UK [government] should be focused on is giving investors like us confidence.”
Despite the move, Copus confirmed EnQuest still saw “opportunity to create value” in the North Sea and was running the rule over acquisitions. He said: “We have a skill set which is ideally positioned to build value in geographies like the UK North Sea.”
Amjad Bseisu, Chief Executive Officer, EnQuest, commented: “With these Proposed Acquisitions, we are taking a decisive step in the evolution of our business. It reflects our clear focus on building a larger, more diversified portfolio, while maintaining our discipline in pursuing opportunities that enhance value, strengthen cash generation and support long-term Shareholder returns."
“This is an exciting moment for EnQuest that expands our South East Asia position, strengthens our global portfolio, provides a material milestone in the delivery of our growth strategy, and, we believe, will deliver significant value for Shareholders. I thank CARIGALI for its continued trust in EnQuest as a strategic partner and high-performing operator, and very much look forward to working with our partners to realise the full potential of these new additions to our portfolio.”