EnQuest in $75m deal to boost North Sea presence

North Sea-focused oil producer EnQuest has struck a $75 million (£46.5m) deal to buy a raft of assets from Centrica.

The firm is buying Centrica’s Kittiwake to Forties oil export pipeline, along with its 50 per cent stake in the Greater Kittiwake area (GKA). This includes the Kittiwake, Mallard, Gadwall, Goosander and Grouse fields, where production runs at about 2,000 barrels a day.

The deal, which is subject to regulatory approval, will boost EnQuest’s proven and probable reserves by 4.7 million barrels of oil equivalent.

EnQuest is paying $39.9m up front and taking on $5.1m in net debt. A further payment of $30m will be due, subject to regulatory approval of field development plans.

EnQuest chief executive Amjad Bseisu said: “This acquisition fits within our goals of managing mature fields, and of exploiting nearby discoveries and near field exploration opportunities.

“Our Scolty and Crathes discoveries are within the area and would benefit from a tie-back to Kittiwake. These opportunities would also allow for the extension of the GKA field life.”