Offshore staff
LONDON – EnQuest is set to become operator of the heavy oil Kraken development in the UK northern North Sea. The company has agreed to acquire a 25% interest in the discovery from current operator Nautical Petroleum, and will become operator pending regulatory and partner consents.
EnQuest will pay Nautical between $150 million and $240 million via a development carry in relation to Nautical’s remaining interest in Kraken. The final amount paid will depend on a future determination of Kraken’s proven and probable reserves, due to be taken after the start ofdevelopment drilling.
If the verdict is below 100 MMboe, EnQuest will pay $150 million, rising to $240 million if the outcome is above 166 MMboe.
The 25% interest is inblocks 9/2b and 9/2c, containing Kraken. EnQuest will also acquire a 15% stake in adjoining blocks 3/22a and 3/26, and 10% of blocks 9/6a and 9/7b, with an option to earn a 45% farm-in to block 9/1a in return for paying up to 90% of the cost of up to two wells to appraise the Ketos discovery, a potential tieback to Kraken.
EnQuest CEO Amjad Bseisu said: “With EnQuest’s integrated project development capabilities, our execution team will take the project forward and lead the development, subject to approval of the Field Development Plan.”
01/24/2012
