LONDON (Alliance News) - EnQuest PLC on Monday said it completed the acquisition of the remaining 75% stake in the Magnus oil field, located in the UK North Sea.
In addition, the company said it acquired a 9.0% interest in the Sullom Voe oil terminal and supply facility and associated infrastructure in the Shetland Islands of Scotland.
Both assets were acquired from oil major BP PLC.
EnQuest now has a 100% stake in Magnus, 15.1% in Sullom Voe oil terminal, 18% in the Ninian Pipeline System and 41.9% in the Northern Leg Gas Pipeline.
The oil & gas production company said the purchase of Magnus field will add 60 million barrels of oil equivalent of 2P reserves - meaning proven and probable - and 10 million barrels of oil equivalent of 2C resources - meaning medium conversion probability - both from the beginning of next year.
EnQuest said it expects Magnus field to add cash flow from the addition of significant low-cost 2P reserves. These cash flows will help facilitate the planned reductions in the company's debt, it said.
Looking forward, the company said it intends to continue to assess further value accretive, short-cycle opportunities that have been identified at Magnus.
Meanwhile, Sullom Voe terminal is an essential element of EnQuest's North Sea portfolio through which it flows over one-third of its North Sea production.
The company said it remains on track to deliver GBP50 million of cost savings in its first year as an operator and plans further savings in 2019. EnQuest said it is also exploring opportunities for new business to maximise the terminals value.
"These assets are a strong strategic fit for EnQuest to which we can apply our life extension expertise and deliver value for all our stakeholders," said EnQuest Chief Executive Amjad Bseisu.
EnQuest shares were trading up 3.6% on Monday morning at 23.35 pence each.
BP (BP.)
Enquest (ENQ)
