North Sea-focused EnQuest reported Tuesday that it had agreed to acquire assets in the UK's Greater Kittiwake area currently owned by Centrica North Sea Oil Limited.
EnQuest said it will pay an initial sum of $39.9 million for the assets – which include the Kittiwake-to-Forties oil export pipeline – and will additionally assume a net debt of $5.1 million. It will also pay a deferred consideration of $30 million contingent on the regulatory approval of a field development plan for the Scolty field and/or the Crathes field, including a tie-back to the Kittiwake platform.
The deal will see EnQuest acquire Centrica's entire 50-percent share of the Greater Kittiwake area assets, which includes proved and probable reserves amounting to 4.7 million barrels of oil equivalent. Additional production from these fields includes around 2,000 barrels of oil equivalent per day.
EnQuest CEO Amjad Bseisu commented in a company statement:
"I am delighted to announce our acquisition of these Greater Kittiwake Area assets, giving us an additional UK hub and adding 4.7 Mmboe to our reserves. 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."
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