EnQuest buoyed by strong rise in production

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North Sea oil and gas producer EnQuest today announced a jump in output for the first six months of the year and said it was confident the strong performance would continue into the second half.

Production averaged 25,292 barrels of oil equivalent during the six months to 30 June, an increase of 18 per cent on the same period last year, as a result of “strong reservoir performance and high production efficiency”.

The Aberdeen-based firm said its £4 billion Kraken project, east of Shetland, is proceeding on time and on budget, with the Tyrone appraisal well due to be drilled in the second half of the year.

First oil from Kraken, in which the group has a 60 per cent stake, is expected towards the end of 2016. The field is estimated to contain about 140 million barrels of gross oil reserves.

The jump in first-half production saw EnQuest’s revenues rise 10.5 per cent to $503.8 million (£300m), although pre-tax profits fell 10.6 per cent to $149.4m.

Chief executive Amjad Bseisu said: “In 2014 so far, EnQuest has again delivered good growth in reserves and production.

“Production was up 18 per cent in the first half of 2014 and acquisitions, combined with the new development contract award in Malaysia are expected to result in an incremental increase of approximately 20 million barrels of oil in net proven and probable reserves.”

EnQuest maintained its full-year average production guidance at between 25,000 and 30,000 barrels a day.