Enquest increases stake in Kraken field

Oil and gas group Enquest today said it was again upping its stake in the “exciting” Kraken oil discovery in the North Sea, taking the firm’s interest to 60 per cent.

Under the agreement with First Oil, Enquest will acquire a further 15 per cent interest in two blocks in the East Shetland basin of the discovery.

The amount Enquest will pay for the increased stake will be between $90 million (£55m) and $144m, depending on the level of reserves at the site.

Following the transaction, First Oil will retain a 15 per cent stake with 25 per cent held by Nautical.

Enquest chief executive Amjad Bseisu said he was “enthusiastic” about the potential of the field.

“Our execution team is now leading this development and is taking on operatorship earlier than previously planned. Enquest is moving forward one of the most exciting development projects in the UK North Sea,” he said.

Last month, Enquest said it would invest $1 billion in the North Sea this year on the back of higher prices. It will drill 11 wells and build a hub at its Alma and Galia development, potentially creating thousands of jobs.

Production in 2011 increased 12.5 per cent to 23,698 barrels of oil equivalent per day. At the time Bseisu said measures in the recent Budget to increase tax breaks on small field development and decommissioning made the UK a more competitive proposition for oil firms.