EnQuest considers appeal to GBP16.5 million North Sea fine

Thu, 09th Apr 2026 11:04

(Alliance News) - EnQuest PLC on Thursday said it was "disappointed" to be fined GBP16.5 million by the North Sea Transition Authority for non-compliance.

As a result, the oil and gas company, which operates in the UK and Malaysia, "is considering all options with regard to formally appealing the sanction and the fine."

The UK regulator is penalising Enquest over the timing of plugging and abandonment of 33 wells in its North Sea portfolio.

EnQuest stressed that the wells in question were "relatively young and inactive", having stopped production in 2020, making them lower risk than other assets in EnQuest's portfolio, whereas most of its 84 decommissioned wells are around 40 years old.

Enquest argued that it prioritises decommissioning based on "asset integrity", hence the disparity between its timeline and what the company described as "the date-driven and more mechanistic approach taken by the NSTA's sanctions team".

"EnQuest has presented to NSTA a clear and credible plan for the decommissioning of the sanction wells, and to deliver this, the group signed a multi-year rig contract with Well-Safe Solutions in 2025," EnQuest noted on Thursday.

"The NSTA has, however, decided not to take EnQuest up on its offers to discuss the sanction and our associated representations, and has instead moved directly to its decision."

EnQuest Chief Executive Amjad Bseisu added that the regulator's decision "is not aligned with EnQuest's proven track record".

The penalty follows a mixed earnings report for EnQuest, which reported last month that its pretax profit had nearly trebled on-year to USD166.6 million in 2025. Attributable profit, however, shrank to USD1.6 million from USD93.8 million.

According to EnQuest, this figure reflects the UK government's two-year extension of an energy profit levy, without which EnQuest estimated profit after tax would have been USD125.5 million, with the levy costing the company USD104.1 million in the second half of 2025.

Revenue fell 5.3% to USD1.12 billion from USD1.18 billion in 2024, which the company attributed to lower oil prices during 2025.

Looking ahead, the company plans to push for the introduction of a proposed new oil and gas price mechanism "as a permanent, fit-for-purpose windfall tax successor" to the levy, ahead of the levy's current sunset date in March 2030.

EnQuest shares rose 2.1% to 19.40 pence on Thursday morning in London, having risen 65% over the past year.

Back in May 2025, EnQuest ended efforts to bid for fellow London listing Serica Energy PLC, after failing to agree terms.

By Holly Munks, Alliance News reporter

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