EnQuest eyes boost from North Sea's Kraken project

Oil and gas firm EnQuest is looking forward to a boost in production when its Kraken project in the North Sea comes on stream.

EnQuest said first oil from Kraken remains on course by the end of next month. Picture: Contributed

The group is the operator of Kraken and has a 70.5 per cent stake in the project, one of the largest current North Sea developments, with Edinburgh-based Cairn Energy holding the remaining 29.5 per cent.

• READ MORE: Cairn Energy eyes ‘significant’ boost from North Sea

EnQuest said today that first oil remains on track before the end of next month amid “excellent” drilling progress.

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As a result, the firm is predicting average production of between 45,000 and 51,000 barrels of oil equivalent per day for 2017 as a whole, up from the 37,856 barrels achieved during the first four months of the year.

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Chief executive Amjad Bseisu said: “Our strategic priorities continue to be increasing production by delivering on operational and development execution, whilst also continuing to reduce the operating cost base.

“First production from the Kraken development will give EnQuest its seventh operated hub and will mark a turning point in EnQuest’s progress from a period of heavy investment to one focused on cash generation and deleveraging the balance sheet.”

• READ MORE: BP offloads North Sea assets to EnQuest in $85m deal

EnQuest also said that its planned deal to become operator of BP’s Sullom Voe terminal in the Shetland Islands is on schedule to complete around the end of the year. The transaction will also see the company take a 25 per cent stake in BP’s Magnus oil field, making it EnQuest’s eighth operated hub and providing the potential for “significant future growth”.

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