The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
By bad. The update was ... Following the drilling of the commitment well at Block PM409, the Group can report that the well was plugged and abandoned dry. Following confirmation from Petronas that all well requirements had been met by EnQuest, no further drilling is planned for PM409. So now I have no idea either what AB was referring to.
The only relevant partner for Malaysia is PETRONAS, and my only thought is this must be a reference to the Keranji-1 well. https://www.marine.gov.my/jlm/wp-content/uploads/2023/09/1f61c-peninsular-ntm-188-t-2023-jackup-rig-towing-operation-offshore-terengganu-.pdf This was spudded by the Borr Idun in September and should have recently been completed, but I have seen nothing on the results of the well. Likely to be something from Petronas before we see anything from Enquest.
I agree Bressay is the most likely. I do not think anyone would want such an old hull further North, but it should be good for another ten years on Bressay or further South. I agree the changes for heavy oil are standard engineering, package solutions, and a lot of lessons were learned on the start up of Kraken, which were mainly issues of just specifying the right kit. Heavy oil is less well understood, and so Enquest with the knowledge from Kraken is in a good place in terms of understanding what is needed, Equinor have realised the Mariner approach was probably overkill, and EP would be a low risk solution even if it only lasted five years.
Note also Zakum is just one of many UAE Fields.
Ref : https://www.adnoc.ae/en/our-projects/upper-zakum
Ref: https://www.upstreamonline.com/field-development/abu-dhabi-adnoc-kicks-off-fresh-bid-process-for-lower-zakum-offshore-project/2-1-1158884
That may be true for Saudi, but for the last 8 or so years the UAE has been building capacity, and could produce significantly more for a few years. The reservoir management policies currently arbitrarily limit well production to 3000 bbls/day, which dates back to a period when the government / oil company 60:40 partnerships were concerned over the oil companies desire to maximise capital return, vs government desire to prolong field life. Those legitimate concerns in the days of simple vertical wells, are less applicable to wells with 10,000 foot horizontal sections, which are capable in some cases of producing over 10,000 bbl/day without greater reservoir drawdown than the 50 year old simple vertical wells. Recently there has been both far greater centralisation of reservoir management to ADNOC corporate, and a new generation of well educated young Emirati reservoir engineers who enjoy the trust of the senior management, who are now willing to grant exemptions on restrictions based on good reservoir practice, rather then arbitrary limits. In 2010 the UAE was close to its OPEC limits in terms of production capacity, but now has both more headroom, and a more informed approach to reservoir management. The Zakum Field is arbitrarily divided into Upper and Lower Zakum for reasons of politics, as when BP were running Lower Zakum (Cheaper to develop than the upper sections) they were unwilling to invest in Upper Zakum development in the 70's, when Forties and Alaska consumed available capital, so the government chose alternative partners for Upper Zakum. Combined, there is still about 70 Billion bbls of recoverable oil remaining and Upper Zakum redevelopment over the last few years has created production capacity of over 1 million per day for Upper Zakum alone. Facilities in Lower Zakum largely still date back to the 1960's , but a complete redevelopment plan is in process. Lower Zakum has been producing 500,000 bbls per day since the mid 1960's but is capable of producing more with relatively minor investment.
Romaron, Hendrix. I saw him at the Isle of Wight festival, so you are not alone ! Isle of Wight Festival on August 31, 1970, his last official performance in England before his death less than three weeks later on September 18, 1970.
Romaron,
Just wanted to say thanks for the comments on Energean. I am always concerned I am too heavily invested in ENQ % wise, and decided to move 10% of my ENQ holding to Energean, just before the recent increase.
I think it is very valid to discuss ENQ Peers and similar plays on this board !
The separator design specification used 74Kg per cubic meter. Not sure how that relates to current production. There are some differences across the field as well, so there will be small changes depending on the mix of different wells.
Viscosity is 161 cP in the south, 78 in the center and 125 cP in the North.
https://www.enquest.com/investors/corporate-governance/financial-calendar
2 September.
Carbon capture in existing fields is a big challenge. CO2 plus water creates Carbonic Acid which quickly rots existing completions and pipelines. CCS thus requires costly high chromium steels for casing and any affected pipelines, and basically requires new wells , new pipelines and shutting down any production using existing wells. Not something Enquest should be getting into IMHO.
Beerbul, It was fake news about Bill Gates and the Hydrogen powered yacht. Bill is not into yachts . He willthough sell you a copy of Windows 10 for GBP120 for your Win 7 PC's rather than have you buy new. However as you can buy a good spec modern reconditioned machine with Win 10 Pro for less than GBP 120, that seems wrong. You could run UBunto and OpenOffice on the old PC's for nothing ?
Neil, Is there though not a risk at Zero debt, you make the company a very attractive takeover target at a bargain price, when at a low valuation ? I would have thought it made sense to maintain gearing at about 750 Million.
Chisler, Anglo American sold it in 2002 to Israel Chemicals Ltd.
I do not think selling is a good idea in the current market. You would struggle to get fair value, and most of the risk is now on the upside, and in 12 months the risk is being taken over below fair market value, if debt comes down too quickly. If Brent stays high and FCF is strong, I would suggest a small dividend is used to balance the forces of being hammered for having too much debt, vs. being taken over on th echeap with too little debt.
There is no choice on fixing Thistle, because they could not safely abandon the wells except from the jacket, so even if they decided to go stratight to decommisioning, they would still have to fix the jacket. As they have to fix the jacket, why would you then decommission if there was still production to be had at a profit.
Agree Romoaron,
The 2008 was a quote from the IT support contractor Servelec. It would have been better written - We have been supporting the OSI PI systems at Magus and SVT since 2008..... Enquest inherited the systems at theose locations from BP but continue to enhance them.
Romaron,
Enquest already use OSI PI extensively.
Servelec Controls has provided support services for EnQuest PLC’s PI system since 2008. The OSIsoft PI system collects and analyses data from multiple sources then translates it into a uniform structure in real-time. When EnQuest took on ownership of the Magnus offshore platform and the onshore Sullom Voe Oil Terminal (SVT) in December 2017, Servelec Controls transitioned the PI servers for both assets into one main PI system, enabling operations monitoring from one single system. Servelec Controls now provides 24hr incident response, proactive daily health checks, continual service improvement for system optimisation including upgrades for new features and optimised data analysis for best business use.