Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

EnQuest seeking to sell stakes in North Sea oilfields

Published 2015-12-08, 10:21 a/m
© Reuters.  EnQuest seeking to sell stakes in North Sea oilfields
CNE
-
ENQ
-
I6T
-

* Enquest seeking farm-outs in Heather/Broom field and two
projects
* Seeking cash to boost 2017 investment programme

By Ron Bousso
LONDON, Dec 8 (Reuters) - Oil producer EnQuest ENQ.L is
seeking to sell stakes in several of its North Sea assets in an
effort to boost cash flow in the face of a dim outlook for oil
prices.
Chief Executive Officer Amjad Bseisu told Reuters the
Aberdeen, Scotland-based company has launched a process to farm
out a stake of 20 to 30 percent in the 4,450 barrel per day
Heather/Broom field which it operates.
EnQuest currently holds a 63 percent stake in the field,
while Wintershall Norge ASA has a 29 percent stake and
Canadian producer Ithaca IAE.TO holds an additional 8 percent,
according to EnQuest's website.
EnQuest is also seeking to sell up to a quarter of its 60
percent stake in the Kraken development in the UK North Sea
which is expected to start production in the first half of 2017.
Cairn Energy CNE.L holds a 25 percent stake in the
development.
EnQuest is also aiming at finding investors for a 10 to 20
percent stake in the Scolty/Crathes development, in which it is
the operator with a 50 percent interest.
"We're looking to market part of our North Sea portfolio. We
have a process to see if we can get some partners to get in,"
Bseisu told Reuters.
The farm-ins will allow EnQuest to free up cash for further
investment in 2017 and beyond, Bseisu said.
The company, which specialises in maximising oil output from
old fields using new technology, said on Tuesday it had approved
the $125 million development of Scolty/Crathes in an unusual
move for a sector that is slashing costs due to oil prices close
to seven-year lows.
Its shares were up 2.6 percent by 1455 GMT.
Oil and gas companies around the world have grappled with a
nearly two-thirds drop in oil prices to around $40 a barrel
since June 2014 which has forced many to slash budgets, scrap
projects and sell assets.
EnQuest itself has adjusted maintenance schedules, cut rates
for contractors and linked service providers' payments to
performance, it said.
The drop in energy companies' valuations has also attracted
investors including oil companies and private equity funds
seeking to snap up assets. The UK North Sea nevertheless remains
a relatively tough investment area due to high costs and taxes.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.