EnQuest has struck a near £50million deal to buy North Sea assets from energy giant Centrica.
The firm is buying Centrica’s Kittiwake to Forties oil export pipeline, along with its 50% stake in the Greater Kittiwake area (GKA).
This includes the Kittiwake, Mallard, Gadwall, Goosander and Grouse fields, where production runs at about 2,000 barrels a day.
The deal, which is subject to regulatory approval, will boost EnQuest’s proven and probable reserves by 4.7 million barrels of oil equivalent. It may also lead to EnQuest using the region as its North Sea production hub – with its Scolty and Crathes fields being nearby.
EnQuest chief executive Amjad Bseisu siad the deal will help extend the life of the Kittiwake area.
“I am delighted to announce our acquisition of these Greater Kittiwake Area assets, giving us an additional UK hub and adding 4.7 million barrels of oil equivalent to our reserves,” he said.
“This acquisition fits within our goals of managing mature fields, and of exploiting nearby discoveries and near field exploration opportunities.
“Our Scolty and Crathes discoveries are within the area and would benefit from a tie-back to Kittiwake.
“These opportunities would also allow for the extension of the GKA field life.
“The transaction also provides infill drilling opportunities in the Greater Kittiwake Area fields and improves the potential from exploration opportunities, both in the GKA area and in our existing acreage nearby.”
EnQuest has a 40% interest in each of the Scolty and Crathes discoveries – development planning is ongoing and a field development plan will be submitted to the UK Government next year.
A number of potential off-take routes for future Scolty/Crathes production have been identified, of which Kittiwake is a strong candidate, according to EnQuest.
The future use of Kittiwake as an export route is subject to the successful conclusion of ongoing commercial discussions between Scolty/Crathes and GKA owners.
The deal is worth a potential £46.5million, subject to conditions.