Oil and gas producer EnQuest said yesterday that its largest activity programme in the UK North Sea for almost a decade was “well underway”.
The firm, whose office locations include Aberdeen, also said in its operations update that average production in the first four months of this year was just over 50,000 barrels of oil equivalent per day (boepd) - up more than 4,000 barrels a day compared in the same period in 2021.
EnQuest’s operations are mainly in the North Sea, but it also has interests in Malaysia.
The Kraken field, 77 miles east of Shetland, is the largest single asset in EnQuest's portfolio.
Chief executive Amjad Bseisu said that the performance at Kraken this year has been" strong".
During the first four months of 2022, average gross production at the field – which is 70.5% owned by EnQuest - was 28,173 boepd.
Mr Bseisu also said that the company’s largest activity programme since 2014 is well underway - underlining EnQuest's long-term commitment to investing in the North Sea.
At the Magnus field, around 100 miles north-east of Shetland, the firm has restored production to two wells, completed a well intervention, and was preparing to drill the first of three wells planned for 2022.
Mr Bseisu went on: "Overall, our focus remains on continuing to reduce net debt while selectively investing in our low-cost, quick-payback well portfolio and existing infrastructure in order to sustain our production base.
“At the same time, we continue to be disciplined in our evaluation of organic and inorganic growth opportunities, including development of our new energy business in a capital-light manner."
EnQuest said that average net group production in 2022 is expected to be between 44,000 boepd and 51,000 boepd.
Kraken gross production is anticipated to be between 22,000 boepd and 26,000 boepd (15,500 boepd to 18,500 boepd net).
EnQuest’s infrastructure and new energy business division is responsible for Sullom Voe oil terminal in Shetland, plus a number of offshore pipeline systems.
The firm said in the operations update that the terminal and its related infrastructure continues to maintain safe and reliable performance, with 100% export service availability during the first four months of 2022.
It added: “EnQuest continues to develop cost-effective and efficient plans to transform the terminal and prepare and repurpose the site to progress global-scale decarbonisation opportunities, including carbon capture and storage, electrification and green hydrogen.”
FTSE 100
Brent crude futures were down 0.56% at $112.79 a barrel earlier today.
The UK’s top share index, the FTSE 100, fell by 65 points at 7,445 shortly after opening this morning, following yesterday’s 123-point gain.
Companies reporting today
- Full-year results: Cranswick, HomeServe, RS Group
- Half-year results: Greencore, Shaftesbury
- Fourth-quarter results: Bytes Technology