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EnQuest Completes Purchase Of 41% Stake In Bressay Oil Field

Thu, 21st Jan 2021 10:03

(Alliance News) - EnQuest PLC on Thursday announced it has completed the acquisition of a 41% equity interest in the Bressay oil field in the UK North Sea for GBP2.2 million.

The oil and gas production company that operates in UK North Sea and Malaysia had said it was purchasing the stake in the Bressay field back in July. As a result of the completion of the deal, Norway's Equinor ASA has a 41% non-operated stake in Bressay, and Chrysaor Holdings Ltd has retained an 18% interest.

Under the terms of the agreement signed with Equinor back in July, EnQuest will assume operatorship of the licences following the plugging and abandonment of the 3/28-1 well by Equinor. It said this is a low-cost addition of up to 115 million barrels of net 2C resources, depending on development concept.

EnQuest will make a contingent payment of USD15 million following the approval of a Bressay field development plan.

EnQuest Chief Executive Amjad Bseisu said in July: "With the addition of up to 115 million barrels of net 2C resources, Bressay provides EnQuest an opportunity to demonstrate its proven capabilities in low-cost drilling, near-field and heavy oil development."

Shares in EnQuest were down 4.5% at 13.18 pence in London on Thursday.

By Zoe Wickens; zoewickens@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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