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Https://www.lse.co.uk/rns/HBR/strategic-acquisition-of-llog-bcurt78ujf44p9w.html

Linda Cook has been busy.

This will increase Harbours debt, which may mean they will look to sell some of their UK assetts, which could be the deal that AB has been waiting for.

Https://egyptoil-gas.com/news/shell-nears-3-billion-deal-to-acquire-llog-exploration-offshore/

Re the earlier discussion on preemption rights, I asked AI if Enquest had preemption rights when Cairn increased their stake in 2016. It said:

EnQuest had pre-emption rights when Cairn Energy (now Capricorn Energy) and EnQuest jointly acquired an additional 15% interest in the Kraken field from First Oil in February 2016. Both companies took up First Oil's interest pro-rata to their existing holdings at that time.

So, is it not likely that Enquest also had preemption rights on the Waldorf stake, and for whatever reason, chose to waive their rights, and let Harbour buy the Waldorf stake?

We may never know, but interesting to speculate.

I imagine Enquest would have pre-emotion rights on the sale of the Kraken stake, which they don’t seem to have exercised. So, perhaps they were never interested in Waldorfs assetts, and they are sneaking up on a different transaction. What do people think?

I guess there is a silver lining to this announcement, in that it gives Enquest a reliable, well funded, partner for the Kraken field, as opposed to the the cash strapped Waldorf.

Https://www.lse.co.uk/rns/HBR/uk-north-sea-acquisition-lv5fdszsvbijsr4.html

Harbour have announced they have bought the assetts of Waldorf. Looks like Enquest is destined to always be the bridesmade, and never the bride.

That’s strong criticism from Malcolm Webb…deservedly so. The Scottish media should be picking up on this type of article and industry should take their gloves off, as Aberdeen and the North East of Scotland is going to be decimated. If the junior doctors can withdraw their Labour, and risk the lives of many sick and vulnerable people in our hospitals, to make their point, perhaps the NS operators should reduce gas production on days when wind and solar need gas turbine power generation to make up the shortfall, so the public feel the effect of Labour’s disastrous energy policy. Industry needs to grow some cahonies…

The Budget dashed North Sea oil & gas producers’ hopes by confirming that the energy profits levy (EPL) windfall tax will stay in place until March 2030. It will then be formally replaced by a new, permanent ‘oil and gas price mechanism’ (OGPM), which will see headline taxation rates fall from the current 78 per cent to the prior level of 40 per cent. However, an additional tax rate of 35 per cent will apply above price thresholds of $90 per barrel for oil and 90p per therm for gas.

The new mechanism will come into effect earlier if energy prices fall below current thresholds of $71.40 for oil and 54p per therm for gas for two successive quarters.

Oil prices have been below this level for most of the year, but elevated gas prices have ensured the current levy remains in place. If these thresholds are not breached, the current levy will end by March 2030 and will be replaced by the new rates.

According to the North Sea Transition Authority, producers are currently paying an effective marginal rate of 78 per cent. The industry’s trade body, Offshore Energies UK, argues that this rate is inhibiting capital investment in the fields.

David Whitehouse, chief executive of OEUK, said: “The future of North Sea energy depends on investment, which won’t come without urgent reform of the windfall tax. If the levy stays in place beyond 2026, projects will stall and jobs will vanish, no matter how pragmatic licensing policy becomes.”

The government has become more practical on licensing, allowing exploration near existing fields, which is a partial reversal of its pledge in the 2024 election manifesto for a total ban on new oil & gas drilling licences – a promise that affected share prices markedly at the time.

Nevertheless, the consensus is that the Budget announcement fitted within a pattern of long-term decline for North Sea oil & gas, rather than the beginning of a “managed” revival. A point, perhaps, inadvertently reinforced by the establishment of a North Sea jobs service, which the government promises will be “offering tailored end-to-end support for the current workforce”.

Overall, the market took a downbeat view of the announcements and shares in Harbour Energy (HBR), EnQuest (ENQ) and Serica (SQZ) – the largest listed North Sea explorers – showed small declines of between 1-3 per cent in the aftermath.

Labours stance on the EPL will surely cost them dearly in the Scottish elections. The Conservatives, Reform, and even the incompetent SNP will benefit from Labours inaction on the EPL. But, in the real world, lots of people working in O&G will, sadly, loose their jobs. What a shameful government.

The UK chairman of Exon Mobil certainly doesn’t pull his punches. It’s a damming inditement of UK and EU energy policy and carbon taxes. Lengthy engagement between Exon Mobil and the UK government on the EPL, energy prices and carbon taxes have done nothing to avert the closure of the plant, so, sadly, I don’t think we will see any meaningful reduction in the EPL in the budget. The loss of Grangemouth and Mossmoran within a year of each other, and the UK government’s unwillingness to change policy’s to help the O&G and chemical industry in Scotland will cost Labour at the Scottish elections in May, and will likely mean we have to endure another 5 years of SNP incompetence and independence rhetoric, which may ultimately lead to the break up of the UK. Despite the Scottish football team’s magnificent performance on the pitch last night, this is sad day for Scotland.

Barry Gardiner (Labour MP) was on politics live today. When he was challenged on where the money to fund removing the 2 child benefit cap would come from, (around the 40 minute mark) he replied that the basic tax on the Oil & Gas industry was 38%, which was the lowest in the world. He proposed that the basic level of taxation should be raised to 78%, which would raise £14 billion. This illustrates how difficult it will be for RR to get any reduction in the EPL through parliament, when her MPs are so anti-O&G.

Rom…that’s a disturbing post.

Most ordinary people would surely expect that the ESNZ Committee, indeed any parliamentary committee, behaves professionally, treats the people appearing before it with respect, and behaves in an even-handed manner, consistent with the topic it is investigating. From your post, it appears that the committee is populated by student level activists, who have no understanding of the importance of energy to the UK economy, and are incapable of any independent or critical thought. If that is representative of our parliament, then I think the country is going down a slippery slope. The population deserves better from its elected representatives. I could add a few expletives to properly reflect how I feel after reading your post, but I’m sure you will get my sentiment.

If the committee actually reflects the views of the majority of our parliamentarians on UK O&G, the industry should accelerate the run-down of production in the UKCS, and move, en mass, to friendlier jurisdictions. NS production gave the UK cheap power and gas for the better part of 3 decades, and it could continue to make a significant contribution for the next 2 decades, which would help energy security, tax revenue, UK jobs and reduce import emissions… if our parliamentarians had half a brain.

As I said above…The country deserves better.

I can’t see the industry being particularly pleased with that…a one year reduction won’t move the needle in field economics.

On second thoughts, we need them to buy uk producing assetts, not a decom company. They can probably attract a few individuals try to escape the uncertainty of life at Petrofac, without buying bits of the company.

I drove past Annan House (Enquest’s office in Aberdeen) the other day, and noticed that that Worley had moved out of the bottom two floors. So, if Enquest were to buy bits of the Petrofac organisation, they could probably accommodate them in Annan House, and have all their people in their current building. It’s only a few hundred metres from Petrofac’s office, so it would be an easy move for the Petrofac team.

Jefferies reinitiates Enquest with 'buy' - price target 15 pence

This mornings announcement on bp assets would seem to preclude any further interest in Enquest.

Https://www.thetimes.com/article/f18adc0b-e604-4086-be4e-8f9f8b3aa1ea?shareToken=906c6d963298c37484a6ed4d80520c83