Delivering energy,
fuelling the transition
EnQuest PLC
Annual Report and
Accounts 2024
01
See our transition in action stories
Inside this report
Strategic Report
04
Highlights
05
Key performance indicators
06
At a glance
08
Chairman’s statement
10
Market overview
12
Chief Executive’s report
16
Our strengths
18
Our strategy
20
Operational review
32
Oil and gas reserves and resources
33
Hydrocarbon assets
34
Financial review
39
Group non-financial and sustainability
information statement
40
Environmental, Social and Governance
44
Environmental
48
Social
54
Governance: Risks and uncertainties
72
Governance: Business conduct
74
Governance: Task Force on
Climate-related Financial Disclosures
84
Governance: Stakeholder engagement
Corporate Governance
88
Executive Committee
90
Board of Directors
92
Chairman’s letter
94
Corporate governance statement
98
Governance and Nomination Committee report
101
Audit Committee report
107
Directors’ Remuneration Report
118
Sustainability and Risk Committee report
120
Directors’ report
Financial Statements
125
Statement of Directors’ responsibilities for the
Group financial statements
126
Independent auditor’s report to the members
of EnQuest PLC
138
Group Income Statement
139
Group Balance Sheet
140
Group Statement of Changes in Equity
141
Group Statement of Cash Flows
142
Notes to the Group Financial Statements
181
Statement of Directors’ Responsibilities for
the Parent Company Financial Statements
182
Company Balance Sheet
183
Company Statement of Changes in Equity
184
Notes to the Financial Statements
189
Glossary – Non-GAAP Measures
193
Company information
EnQuest is an oil and gas
company with the energy
transition at the heart of
everything we do.
We are a leader in late-life
energy asset management –
optimising oil and gas fields,
delivering sector-leading
decommissioning, repurposing
existing infrastructure and
fuelling the energy transition
through decarbonisation and
renewable energy projects.
This is transition in action.
Transition in action
Midstream and Veri Energy
Right-sizing existing infrastructure
and progressing scalable new energy
and decarbonisation projects.
Page 28
Transition in action
Upstream
Late-life asset management
expertise, extending asset lives.
Page 22
Transition in action
Decommissioning
Delivering sector-leading
decommissioning performance
– a key transition capability
Page 26
Strategic Report
Corporate Governance
Financial Statements
EnQuest PLC Annual Report and Accounts 2024
01
We responsibly extract existing oil
and gas resources through established
infrastructure while minimising emissions.
Upstream
Decommissioning
We are focused on safe and reliable
operations while repurposing infrastructure
to progress renewable energy and
decarbonisation opportunities at scale.
Midstream and Veri Energy
CARBON STORAGE
CO
2
storage potential (mtpa)
10
TOP QUARTILE PRODUCTION UPTIME
Group operated production efficiency (%)
90
2023: 87
Who we are and what we do
Our strategic
vision
To be the partner
of choice for the
responsible
management of
existing energy
assets, applying our
core capabilities to
create value through
the transition.
Our
purpose
Our purpose is to
provide creative
solutions through the
energy transition.
Our
Values
SAFE Results
Working
Collaboratively
Respect & Openness
Growth & Learning
Driving a Focused
Business
An independent energy
company, demonstrating
expertise across the
transition lifecycle
WELL PLUG AND ABANDONMENT
Thistle and Heather wells completed
22
2023: 25
We are committed to delivering
decommissioning programmes responsibly,
minimising emissions and maximising the
reuse of recovered materials.
Our strategic
focus
1
Managing assets
to optimise and
grow production
while exercising
cost control and
capital discipline
2
Repurposing existing
infrastructure to
deliver new energy
and decarbonisation
opportunities at scale
3
Safely and
efficiently executing
decommissioning
activities
4
Managing our
Balance Sheet while
pursuing selective,
capability-led and
value-accretive
acquisitions
See more on
Page 18
See more on
Pages 16-19
See more on
Page 22
See more on
Page 26
See more on
Page 28
What we do
EnQuest PLC Annual Report and Accounts 2024
Strategic Report
Corporate Governance
Financial Statements
02—03
Highlights
Balance sheet
strength provides
foundation for
growth.
Strong operational performance
and focused cost control and capital
discipline underpinned further
deleveraging during 2024. EnQuest
net debt was reduced in the year
from $480.9 million to $385.8 million,
following another year of positive
free cash flow generation and the
repayment of a vendor loan provided
to RockRose as part of the 2023 Bressay
transaction. The Group also fully repaid
its reserve based lending (‘RBL’) facility
during the first quarter. In order to
maximise available financial capacity
to pursue value-accretive growth, the
Group completed a successful tap of
its existing high yield bond, with the
proceeds used to repay and refinance
the $150.0 million term loan facility.
Production in the year decreased by
7.0% versus 2023, reflecting natural
declines across the portfolio partially
offset by top quartile production uptime
and the efficient execution of well work
activities at Magnus and PM8/Seligi.
The Group’s adjusted EBITDA decreased
18.4% to $672.6 million, reflecting the
lower revenue associated with reduced
production and lower commodity
prices, as well as higher tariffs at
SVT. Profit after tax was $93.8 million,
reflecting a lower tax charge in the
period. The Group reported basic
earnings per share of 5.0 cents (2023:
loss per share of 1.6 cents), primarily
reflecting a lower effective tax rate
of 43.7% (2023: 113.3%) in the year.
The Group’s robust balance sheet and
transaction-ready liquidity position
means EnQuest is well placed to
pursue growth opportunities and return
capital to shareholders, with a final
2024 dividend of 0.616 pence per share
proposed (equivalent to c.$15 million).
Average Brent oil price
$/bbl
80.5
-2.4%
2023: 82.5
Average day-ahead gas price
GBp/therm
83.6
-15.5%
2023: 98.9
Commodity prices
Operating costs
$ million
382.8
+10.3%
2023: 347.2
Adjusted free cash flow
$ million
53.2
-82.3%
2023: 300.0
Read more in the
Financial review
see Page 34
Adjusted EBITDA
$ million
672.6
-18.4%
2023: 824.7
Alternative performance measures
1
Revenue and other operating income
$ million
1,180.7
-20.6%
2023: 1,487.4
Read more in the
Financial review
see Page 34
Net assets/(liabilities)
$ million
542.5
+18.8%
2023: 456.7
Basic earnings/(loss) per share
cents
5.0
n/a
2023: (1.6)
Net cash flows from operating activities
$ million
508.8
-32.5%
2023: 754.2
Profit/(loss) before tax
$ million
166.6
-28.1%
2023: 231.8
Statutory performance measures
1
3
A
HSEA
Group Lost Time Incident
frequency rate
1
+198.1%
2024 performance with respect to Lost
Time Incident (‘LTI’) performance was
disappointing and out of line with the
Group’s recent safety record. EnQuest
aims to be in the upper quartile for
safety performance and is working
closely with contractors to ensure that
everyone working at our sites is aligned
with EnQuest’s commitment to safety.
1
4
D
Cash generated from operations
$ million
-19.7%
Cash generated from operations
reflected lower production and lower
commodity prices.
1
G
Net 2P reserves
MMboe
-3.6%
During 2024, the Group produced
c.14 MMboe of its year-end 2023 2P
reserves base, partially offset by the
recognition of additional gas volumes
in South East Asia.
1
3
B
Net production
Boepd
-7.0%
The decrease in production was
primarily driven by natural declines
across the portfolio partially offset by
strong production efficiencies and
the efficient execution of well work
activities at Magnus and PM8/Seligi.
1
E
Cash capital and decommissioning
expense
2
$ million
+48.5%
Increased cash capital and
decommissioning expense reflected
SVT major project costs and Magnus
Flare Gas Recovery, the Magnus five-
yearly rig recertification, and well plug
and abandonment decommissioning
activities at Heather and Thistle.
1
3
H
Scope 1 and 2 emissions
tCO
2
e
+2.5%
EnQuest has reduced its operated Scope
1 and Scope 2 emissions by 22% against a
2020 baseline. 2024 saw a slight increase
in year-on-year emissions, driven by
increased flaring at SVT. Work is ongoing
to decarbonise the terminal site by 90%.
For more information,
see Page 28
.
1
C
Unit opex
2
$/Boe
+15.5%
Average unit operating costs were
primarily impacted by SVT tariff costs
and lower 2024 production volumes.
4
F
EnQuest net debt
2
$ million
-19.8%
Adjusted free cash flow generation in
2024 and the repayment of a vendor
loan provided to RockRose as part of
the 2023 Bressay transaction, enabled
the Group to pay down a further
$95.1 million of EnQuest net debt.
Key performance indicators
Notes above
1
See reconciliation of alternative
performance measures within the
‘Glossary – Non-GAAP measures’ starting
on page 189
Notes opposite
1
Lost Time Incident frequency represents
the number of incidents per million
exposure hours worked (based on 12 hours
for offshore and eight hours for onshore).
2
See reconciliation of alternative
performance measures within the
‘Glossary – Non-GAAP measures’ starting
on page 189
2024
2023
2022
0.52
0.57
1.55
2024
2023
2022
685.9
854.7
1,026.1
2024
2023
2022
385.8
480.9
717.1
2024
2023
2022
169
175
190
2024
2023
2022
40,736
43,812
47,259
2024
2023
2022
313.4
211.1
174.8
2024
2023
2022
21.9
22.7
25.3
2024
2023
2022
1,068.4
1,041.9
1,051.9
Our strategic focus
1
Managing assets to optimise
and grow production while
exercising cost control and
capital discipline
2
Repurposing existing
infrastructure to deliver new
energy and decarbonisation
opportunities at scale
3
Safely and efficiently executing
decommissioning activities
4
Managing our Balance Sheet
while pursuing selective,
capability-led and value-
accretive acquisitions
EnQuest PLC Annual Report and Accounts 2024
Strategic Report
Corporate Governance
Financial Statements
04—05
Group operations
Carbon storage
- 10 million tonnes
per annum
4 Deep water jetties
- 24 metre draught
Renewable
energy hub
Alma/Galia
Scolty/Crathes
Kraken
Magnus
Golden Eagle
Aberdeen
E-Fuel production
Upstream
Decommissioning
Midstream
Heather/Broom
Sullom Voe
Terminal
Thistle/
Deveron
Dons
Alba
Greater Kittiwake Area
Sullom Voe Terminal,
Shetland Islands
Global
employees
2P Reserves
(MMboe)
UK production
hubs
2C Reserves
(MMboe)
UK North Sea
PM8/Seligi
DEWA
Kuala
Lumpur
Malaysia
Onshore
processing
terminal
Operated
2P
Decommissioning
assets
Group
production
(Boepd)
RRR
1
since IPO
667
169
4
354
1
96%
4
40,736
1.4x
At a glance
We focus on mature assets,
responsibly optimising
production to provide energy
security. Where we can, we
repurpose infrastructure to
deliver renewable energy
and decarbonisation projects
before executing world-class
decommissioning.
mtpa CO
2
storage potential
carbon storage licences
10
2
The Sullom Voe Terminal provides the Group
with the infrastructure from which to progress its
renewable energy and decarbonisation ambitions,
including carbon capture and storage, generation
of renewable power and the production of e-fuels.
Renewable energy and
Decarbonisation opportunities
1
Reserves Replacement Ratio
calculated as Reserves Additions/
Cumulative Production – effective
31 December 2024
EnQuest PLC Annual Report and Accounts 2024
Strategic Report
Corporate Governance
Financial Statements
06—07
A responsible energy future
requires balance, delivering
reliable oil and gas today
while driving towards the
solutions of tomorrow.
Chairman
Gareth Penny
Delivering
diversified
growth
Chairman’s statement
Overview
The Group continues to demonstrate
its differentiated operating capability
across the portfolio, leveraging core
capabilities to create value through the
upstream asset life cycle. This operational
excellence provides a strong foundation
for the Group’s growth ambitions in the UK
and is fundamental as we look to deploy
our expertise on several new projects
in South East Asia. Having celebrated
ten years of successful operations in
Malaysia, EnQuest was proud to be named
Malaysia Upstream Operator of the Year by
PETRONAS, and our commitment to growth
in the region has been reinforced by the
award of the DEWA Production Sharing
Contract and the expansion of the Seligi
gas agreement. Our entry into Vietnam
through the Block 12W acquisition provides
further geographic and commodity
diversification and demonstrates our
commitment to deploy capital where
we see the most favourable returns.
As the UK fiscal regime has continued
to provide challenges for all North Sea
operators, our long-standing commitment
to cost management and a prudent
approach to capital allocation have
ensured that our financial performance
has remained robust. Following continued
fast payback capital allocation and
our well-supported high yield bond tap
process during 2024, we have delivered
shareholder returns, further reduced debt
levels and enhanced financial flexibility,
with significant transaction-ready
liquidity available to grow the business.
We are very clear that we are targeting
transformational growth through
acquisition in the UK. The UK Energy Profits
Levy has impacted cash generation and
investment across the UK energy sector,
with the Group’s significant tax asset
creating a relative advantage versus full
tax-paying peers. With the combination
of our late-life asset management
expertise and this differentiated tax
position, value can be created from the
transfer of assets into our ownership,
and I believe that EnQuest represents
a credible North Sea consolidator. As
such, I am confident there will be further
opportunities for EnQuest to add significant
value-accretive production and cash
flow to the portfolio as other operators
continue to shift their focus from the UK.
Fuelling the Just Energy Transition
As a responsible transition operator,
EnQuest is very clear that the value
generated by our Upstream business is
of primary focus, both in terms of cash
generation and retention of the key skills,
knowledge and technical expertise which
are vital to a successful transition. This focus
extends to decommissioning, in which
EnQuest continues to demonstrate sector-
leading capability and has an established
position as the most prolific well plug and
abandonment exponent in the North
Sea. Decommissioning is a key transition
activity that is becoming an ever more
significant component of the competency
mix for a North Sea operator, including
as a key enabler in M&A discussions.
With significant decarbonisation projects
underway across our production asset
portfolio and at the Sullom Voe Terminal
(‘SVT’), the Group continues to demonstrate
its commitment to internal and external
emission reduction targets and to fulfilling
the Board commitment to reach net zero
Scope 1 and Scope 2 emissions by 2040.
Under the management of Veri Energy,
the Group’s wholly owned subsidiary,
considerable progress has been made
in delivering credible and potentially
material new energy and decarbonisation
opportunities, primarily through
repurposing existing infrastructure at SVT,
a microcosm of the UK energy transition.
EnQuest is a truly just transition
company, supporting net zero
ambitions while continuing to
meet society’s energy needs. The
reality is that oil and gas will remain
essential for the foreseeable future,
even as we implement low-carbon
solutions. Our focus is on delivering
that energy safely, efficiently, and
with a reduced environmental
footprint. A just transition is not just
about technology; it is about people.
The oil and gas sector supports
around 200,000 jobs across the UK,
and we are committed to ensuring
that our workers have the skills and
opportunities to thrive in the evolving
energy landscape. Through targeted
investment in training, reskilling,
and our decarbonisation and new
energy projects, we are preparing our
workforce for the future while creating
new opportunities in clean energy.
Furthermore, we continue to work
closely with local communities,
industry partners and government
bodies to ensure that the transition
delivers economic growth and
equitable, long-term prosperity,
particularly in regions historically
reliant on oil and gas. The expertise
that resides today within traditional
oil and gas companies will deliver
the energy transition, and we
recognise that our skilled and
dedicated workforce is our strength.
As we navigate the energy transition, we
are committed to strategies that prioritise
employee and community wellbeing,
professional growth, and economic
security. We have set ambitious, time-
bound targets to reduce our emissions,
consistently updating internal and external
stakeholders on progress, and I was
delighted to see our efforts recognised
through a ‘B’ rating in the 2024 CDP Climate
Change Survey, which places EnQuest
among the sector leaders.
Leadership
Corporate governance is an essential
part of EnQuest’s operational and
business framework, supporting both risk
management and the Group’s Core Values.
We remain focused on Board and executive
succession planning, with the evolution of
the Group’s strategy necessitating changes
to align competencies more closely with
its delivery. As part of the Board refresh and
following shareholder approval at the 2024
Annual General Meeting (‘AGM’), Jonathan
Copus joined the EnQuest Board as an
Executive Director, with Rosalind Kainyah
MBE and Marianne Daryabegui joining
the Board as Non-Executive Directors. As
previously announced, Salman Malik, Rani
Koya and Liv Monica Stubholt stepped
down as Directors at the AGM.
With the additions of Jonathan as Chief
Financial Officer and Steve Bowyer as North
Sea General Manager, as well as Radzif
Ahmed’s expanded role in managing our
growing South East Asian business, I am
pleased to report Amjad is leading a strong
and experienced management team,
supported by a diverse and knowledgeable
Board. Across the whole Group, I am
impressed by the depth and breadth of
our talent pool and collective focus on
delivering on EnQuest’s strategic aims.
Looking ahead
As we look to deliver material value-
accretive growth in the UK and continued
diversified growth across South East Asia,
we remain confident in the resilience and
repeatability of our business model, the
expertise of our people, and a commitment
across the organisation to deliver long-term
value for our shareholders. We recognise
the imperative to adapt to changing market
and socio-economic dynamics and
embrace the opportunities created by our
operational and financial advantages.
We continue to advocate on behalf of
our sector and the workers, families and
communities dependent on oil and gas
for their quality of life today and as part
of a low-carbon future. Particularly in the
UK, policymakers have the opportunity
to embrace the reality that transitions
take time and that, if managed in a just
and orderly way, can yield significant
opportunities to deliver economic growth,
energy security and an effective and
sustainable approach to innovation across
our energy mix. EnQuest will remain at
the forefront of efforts to enhance the
investment climate and pursue sustainable
growth, guided by our strategic vision to
apply our core capabilities to create value
through the transition.
Gareth Penny
Chairman
“At EnQuest, we are
committed to a Just
Energy Transition that
supports energy security,
sustainability, and
economic growth.”
EnQuest PLC Annual Report and Accounts 2024
Strategic Report
Corporate Governance
Financial Statements
08—09
EnQuest PLC Annual Report
and Accounts 2024
In shaping our strategy
we consider a wide range
of issues, assessing the
potential opportunities
and threats they pose
to our business.
Global trends
impacting our business
What does it mean for
our industry?
Fiscal regime volatility undermines
confidence and negatively impacts
the investment environment. The
increase in UK Energy Profits Levy
(‘EPL’) rate from 35% to 38% and its
extension to 2030, announced in
the Autumn Budget, represented
the fifth amendment to UK sector
taxation in the last three years. The
EPL has resulted in a number of
industry participants accelerating
their shift in focus away from the
UK North Sea, with some reducing
investment and others looking
to depart the UK entirely.
What does it mean for
our industry?
Commodity prices remained within
a lower but stable range during 2024,
with the year largely defined by the
wars in Ukraine and Gaza. 2024 also
marked a significant milestone for
global policy, with over 70 countries,
representing more than half of the
world’s population, holding national
elections. Energy policy emerged
as one of the critical issues, with
global voters assessing the success
of their national energy strategies.
How are we responding?
EnQuest remains committed
to growing its UK business,
underpinned by a differentiated
operating capability and the
Group’s historic tax asset. These
relative advantages provide the
Group with a strong foundation
from which to pursue value-
accretive growth through
acquisition, as demonstrated by
recent growth in South East Asia.
How are we responding?
EnQuest hedges a significant
amount of its production in order to
protect against downside risk, while
retaining the upside during periods
of increased commodity prices.
Further changes to the EPL have
driven some operators to shift
focus away from the UK North
Sea, and towards more
supportive geographies.
Global markets impacted
by volatility of the geopolitical
environment. Global conflicts
and government policies
affecting supply/demand
dynamics.
UK oil and gas
fiscal regime
Macroeconomic
uncertainty
Market overview
Read more in the
Financial review
see Page 34
What does it mean for
our industry?
Within the oil and gas sector, a
credible transition plan is effectively
the licence to operate. Companies
will increasingly be asked to
explain how targets will be met and
emphasis will be applied to reporting
against interim milestone targets.
Scope 1 and 2 emissions
tCO
2
e
-22%
What does it mean for
our industry?
The transition to just energy
introduces both challenges
and opportunities for the sector.
Companies that adapt to
changing market dynamics,
diversify their portfolios, and
embrace sustainable practices
will be better positioned to thrive
in a low-carbon future. Investors
are increasingly considering ESG
factors in their investment decisions
and companies will face issues in
attracting investment if they are
perceived as being incompatible
with sustainability goals.
What does it mean for
our industry?
The Environmental, Social and
Governance (‘ESG’) landscape
is evolving and oil and gas
companies are expected to
adopt principles of environmental
stewardship, resource efficiency,
social responsibility and
community engagement, and
safety and risk management.
Above all, transparency and
accountability are vital.
How are we responding?
EnQuest has a Board-approved
target to reach net zero in terms of
Scope 1 and Scope 2 emissions by
2040. The Group is progressing its
transition plans and continued to
progress a credible transition plan
during 2024. The decarbonisation
and renewable energy opportunities
at the Sullom Voe Terminal add
significant credibility to the
Group’s net zero ambitions.
How are we responding?
The Group recognises the evolving
energy landscape and is committed
to leading a Just Energy Transition,
ensuring that our workers, the
communities we serve, and our
stakeholders benefit in the process.
How are we responding?
EnQuest maintains collaborative
relationships with major
shareholders, lenders and other
key stakeholders, regularly seeking
feedback on the Group’s operational
plans and ESG performance.
Demonstrating its commitment
to responsible and sustainable
operations, the Group was
awarded a ‘B’ rating in the 2024
CDP Climate Change Survey.
Governments, regulators and
consumers are calling for the
reduction of carbon-related
emissions and net zero targets
are coming under scrutiny.
The JET has risen to prominence,
underscoring the shift from fossil
fuels to renewables, prioritising
equity and support for impacted
people and communities.
Key stakeholders are
increasingly demanding
responsible and ethical
working practices that drive
positive impacts for society
and manage risk.
Climate change
and carbon
targets
The just energy
transition (‘JET’)
Responsible
and sustainable
operation
2024
2020
1,068.4
1,361.9
EnQuest PLC Annual Report and Accounts 2024
Strategic Report
Corporate Governance
Financial Statements
10—11
Our growth strategy is
underpinned by the belief
that we can deploy our
expertise to create value
across the asset life cycle.
Chief Executive
Amjad Bseisu
Delivering
operational
excellence
Chief Executive’s report
Overview
EnQuest is an expert in managing
assets in mature basins. We do this
by improving operational uptime,
lowering costs and extending asset
life. At the end of an asset’s economic
life, we either safely decommission it or
repurpose it for a low carbon future.
Across the UK North Sea and South
East Asia, we operate c.96% of our 2P
reserves. This means we have strong
control over how we deploy our people
and capital. Our focus is to invest in
maintenance and low-cost, fast-payback
opportunities that diversify production,
help manage natural field declines, lower
costs and reduce emissions. We have
been careful to enter these assets with
financial agreements that minimise our
exposure to decommissioning costs.
Delivering diversified growth is central
to our strategy. In the UK North Sea, we
remain focused on utilising our core
operational skills and advantaged tax
position to deliver a deal that propels
us into the top tier of producers. This will
expand the Group’s cash flow, enabling
us to boost shareholder distributions and
accelerate our growth in South East Asia.
Since ending 2024, we have grown our
cash and available facilities to $549.0
million as at 28 February 2025. This
provides a strong foundation from which
to transact, and we are focused on 2025
as a year of transformational delivery.
Market conditions
In 2024, wars in Ukraine and Gaza
intensified and over 70 countries,
representing more than half of the world’s
population, held national elections.
Despite this complex geopolitical mix, oil
prices were lower but relatively stable,
with Brent averaging $80.5/bbl.
Production
Boepd
40,736
Group liquidity
1
at 31 December 2024
$ million
474.5
In the UK, the Labour Party entered
power following the General Election
with a strong majority and a manifesto
pledge to tighten fiscal conditions in the
UK North Sea, despite the UK being the
only country in the world to maintain a
windfall tax on oil and gas producers
in 2024. The new government used its
first Budget Statement to increase the
Energy Profits Levy (‘EPL’) rate to 38% and
extended its duration to 31 March 2030.
This was the fifth material amendment
to UK sector taxation in the last two and
a half years. Such volatility undermines
North Sea investment and impacts jobs
and equipment that are essential to
delivering the UK’s transition ambitions.
As more industry participants
accelerate their shift in focus away
from the UK North Sea, we retain the
view that a significant proportion of
UK production is transactable, and we
are clear in our desire to be a sector
consolidator. Our significant tax loss
position and the impact of the EPL on
marginal tax rates means that the
transfer of assets to EnQuest ownership
would increase their relative value to a
multiple of that in the hands of existing
owners. The combination of this relative
tax advantage and our differentiated
operating capability, including
demonstrable decommissioning
expertise, make EnQuest the right
operator to maximise the value of
mature assets in the North Sea.
EnQuest has a track record of
demonstrating resilience, creativity,
and adaptability, and can generate
opportunities in such circumstances.
Having consistently delivered against
production, operational and cost
targets, we have generated material-
free cash flows across recent years,
even during periods of significantly
reduced commodity prices.
This commitment to delivery, against
the backdrop of a challenging UK fiscal
environment, has seen us reduce
EnQuest net debt by more than $1.6
billion since its peak. With no outstanding
debt maturities until 2027, now is the
time for EnQuest to build on that strong
foundation as we look to deliver material
growth in the UK and accelerate the
value of our significant UK tax asset.
All figures quoted are in US Dollars unless otherwise stated.
1
Cash and available facilities.
See Glossary – Non-GAAP
Measures on
Page 189
“We are value-led and
committed to playing
our part in a just and
sustainable transition,
with our people and our
communities at its heart.”
Exceptional operating performance
In 2024, EnQuest delivered production
efficiency of c.90% across its operated
portfolio, production averaging 40,736
Boepd (2023: 43,812 Boepd). 80% of this
production originated from the UK North
Sea and 88% of Group output was oil.
With 88% production efficiency, our North
Sea assets again significantly exceeded
the industry’s average basin performance
(c.77%). Given EnQuest’s focus on late-life
assets, this is a standout achievement.
The Kraken field continued to perform at
the very top of the production efficiency
for floating hubs, the FPSO’s 95.5%
production efficiency exceeding North
Sea average efficiency by c.25%.
High levels of uptime at Magnus were
offset by minor delays to the five-yearly
rig recertification, which in turn delayed
the start-up of several new wells.
The field also suffered an outage on
third-party infrastructure in the fourth
quarter of 2024. To mitigate this, the
Group designed and executed a well
optimisation campaign that added over
1,000 Boepd of incremental production.
Production efficiency in Malaysia
averaged 94% and production totalled
8,149 Boepd (10% up on 2023). This was
underpinned by three new infill wells
and strong domestic demand for
associated Seligi 1a gas, for which EnQuest
receives a handling and delivery fee.
EnQuest is successfully delivering
against a key component of its strategy
by delivering diversified growth, with
successive South East Asian transactions,
that provide geographic and commodity
diversification within the portfolio. Our
entry into Vietnam through the Block 12W
acquisition and extending our Malaysian
footprint with the expansion of our Seligi
gas agreement and the DEWA PSC
award are all underpinned by EnQuest’s
differentiated operating capability and
our ability to deploy our expertise to
create asset value. As EnQuest continues
to work towards a transaction in the UK
North Sea and further potential new
country entries in South East Asia, these
agreements underline our commitment
to growth, a disciplined approach to M&A,
and a strategy to deploy capital where
we see the most favourable returns.
Strategic Report
Corporate Governance
Financial Statements
12—13
EnQuest PLC Annual Report and
Accounts 2024
At the other end of the lifecycle of our
asset portfolio, EnQuest plugged and
abandoned (‘P&A’) another 22 wells, and
the Group remains on track to complete
well P&A work on both Heather and Thistle
in 2025. Although we have delivered more
than 35% of the total well P&A work in the
North Sea over the last three years, our
exposure to the cost of this work remains
one of the lowest in the basin, as these
costs have mostly been left behind with
the original owners of the assets. We
continue to deliver P&A activities at a per
well cost that is significantly below the
North Sea Transition Authority (‘NSTA’)
industry benchmark, and in recognition
of our decommissioning expertise,
in 2024 Shell transferred to EnQuest
its decommissioning management
role of the Greater Kittiwake Area.
Having produced c.14 MMboe of
hydrocarbons in 2024, we almost
fully replaced these volumes through
2P reserve additions in South East
Asia, with Group 2P reserves totalling
168.6 MMboe at 31 December 2024
(2023: 174.9 MMboe). 2C resources also
remained robust, totalling c.354 MMboe,
Bressay and Bentley each holding more
than 100 MMboe of net resource.
Post the period end, EnQuest
added a further 7.5 MMboe of 2P
and reserves and 4.9 MMboe of 2C
resource through the acquisition of
Harbour’s Vietnam operations.
Financial performance
The Group’s continued solid financial
and operating performance in the
period drove further strengthening of
EnQuest’s balance sheet and enabled
the focus of the business to pivot to
shareholder distributions and growth.
We reduced our EnQuest net debt by
a further $95.1 million, to $385.8 million
(31 December 2023: $480.9 million)
and we were delighted to execute our
first shareholder return programme,
repurchasing $9.0 million of capital via
a share buyback.
Lower commodity prices, production and
the Magnus crossover gas component
reduced Group revenue to $1,180.7 million
(2023: $1,487.4 million). The Magnus
crossover gas also drove a reduction in
cost of sales, with production costs flat
year-on-year. Adjusted EBITDA fell by 18.5%,
to $672.6 million (2023: $824.7 million) but
EnQuest’s effective tax rate fell to 43.7%
(2023: 113.3%) due to the recognition of
additional carried forward tax losses. As a
result, the Group reported a post-tax profit
of $93.8 million (2023: $30.8 million loss).
Chief Executive’s report
continued
“Our top quartile
operating capability
and differentiated tax
position make EnQuest
the right operator to
maximise the value of
mature assets in the
North Sea and beyond.”
Capital expenditure in the period rose to
$252.9 million, primarily relating to the
Magnus five-yearly rig recertification,
Golden Eagle drilling, decarbonisation
projects at SVT, and the emission-reducing
Magnus Flare Gas Recovery project
(2023: $152.2 million). Decommissioning
expenditure totalled $60.5 million
(2023: $58.9 million). In the period, we
also received repayment of a vendor
loan that was provided to RockRose as
part of the 2023 Bressay farm-down.
We used our financial strength to
make $130.6 million of net repayments
on our loans and borrowings (2023:
$237.1 million), repaying our RBL facility
in full ($140.0 million) in Q1 2024 and,
in Q4 2024, repaying the entire $150.0
million term loan facility through a
$160.0 million tap of EnQuest’s high
yield bond, which has simplified
transaction-ready access to our RBL.
Following the RBL redetermination process
at the end of 2024 and with no further
drawdowns in the first quarter of 2025,
$237.1 million of the RBL facility remains
available to EnQuest for future drawdown.
We understand the importance of
distributions to our shareholders and,
having ended 2024 with a strong financial
position, EnQuest is pleased to propose
its maiden dividend, which for 2025 will
be 0.616 pence per share, equivalent to
c.$15 million.
Environmental, Social
and Governance
Against the 2018 baseline established
by the NSTA’s North Sea Transition Deal,
we have reduced our absolute UK Scope
1 and Scope 2 emissions by over 40%,
providing a strong foundation for our
commitment to reach net zero in Scope
1 and Scope 2 emissions by 2040.
Work continues to decarbonise existing
portfolio infrastructure. Examples of these
initiatives include the Magnus Flare Gas
Recovery project, which was sanctioned
in 2024, and development of the Bressay
gas cap, for which we target regulatory
approval later this year. At the Sullom
Voe Terminal (‘SVT’) on Shetland, we are
progressing two significant projects: the
New Stabilisation Facility (‘NSF’) and the
long-term power solution, which together
will reduce SVT’s carbon footprint by c.90%.
Under the management of Veri Energy,
a wholly owned subsidiary of EnQuest,
we are also supporting the UK’s
transition ambitions by progressing
several scalable renewable energy
and decarbonisation projects.
The health, safety and wellbeing of our
employees remains our top priority.
In 2024, our Lost Time Incident (‘LTI’)
performance fell short of our expectations
and was out of line with the Group’s
recent safety record. EnQuest aims
to be in the upper quartile for safety
performance and is working closely with
all contractors to ensure that everyone
working at our sites is aligned with
EnQuest’s commitment to SAFE Results.
2024 saw a number of changes to the
EnQuest Board, with Jonathan Copus,
our Chief Financial Officer, formalising his
Board position and Rosalind Kainyah MBE
and Marianne Daryabegui joining the
Board as Non-Executive Directors. With
Salman Malik, Rani Koya and Liv Monica
Stubholt stepping down as Directors
at the Annual General Meeting (‘AGM’),
I would like to thank them for their diligent
contributions to EnQuest over the years. I
look forward to working with the refreshed
Board as we execute our growth strategy.
2025 performance and outlook
In 2025, our focus is to maximise the
value of our existing assets, while using
our operating expertise and advantaged
UK tax position to grow our business
through acquisition. Success in these
goals is expected to deliver a step-
change in our operations, which will
expand cash flow and enable us to
boost shareholder distributions and
accelerate our growth in South East Asia.
Group production to the end of February
from the current portfolio, excluding
Vietnam, was 43,037 Boepd. At the same
date, following the Group’s year-end RBL
redetermination, cash and available
facilities had risen to $549.0 million.
Our full-year 2025 net production
guidance of between 40,000 and 45,000
Boepd includes pro forma volumes from
our Vietnam acquisition (due to complete
during the second quarter of 2025) and
the expected impact of drilling and
well work at Magnus and PM8/Seligi.
Pro forma operating costs are expected
to be c.$450.0 million, while capital
expenditures are expected to be c.$190.0
million. Decommissioning expenditures
are expected to total c.$60.0 million.
In 2025, we are working to advance
several important projects toward
Final Investment Decisions (‘FID’).
Development of Bressay’s gas cap will
lower Kraken costs and emissions, whilst
de-risking the pathway to development
of significant oil volumes on the Bressay
and Bentley fields (together c.250 MMboe
of the Group’s 2C Resources).
EnQuest operates the Sullom Voe Terminal
on Shetland, which is the focus of the
Group’s decarbonisation and renewable
energy projects.
1
See Glossary – Non-GAAP Measures on Page 189
2
This includes pro forma Vietnam volumes
EnQuest’s Kraken FPSO
EnQuest net debt
1
at
31 December 2024
$ million
385.8
2025 pro forma production
guidance
2
Boepd
40,000
45,000
Following encouraging testing, we also
aim to progress the Kraken Enhanced Oil
Recovery (‘EOR’) project to a FID within the
next 12 months. Initial estimates suggest
that this has potential to unlock 30 to 60
MMbbls gross of additional recoverable oil.
Our position as a top quartile operator,
alongside our advantaged UK tax
position, enhances our M&A credentials
as a responsible owner and operator
of existing assets and infrastructure
as we transition to a lower-carbon
energy system, offering our people
long-term opportunities. We also
believe that our core capabilities and
top quartile operating performance
can be replicated and deployed across
other geographies as we continue to
grow and diversify internationally.
Reflecting on 2024, I am proud of the
resilience, adaptability, and commitment
that have defined our performance.
Despite a dynamic and volatile global
energy landscape, EnQuest has delivered
diversified growth, demonstrated
operational excellence, and returned
capital to our shareholders. Our
employees remain the cornerstone
of our success and, together, we
recognise the responsibility we share
in shaping the future of energy.
As we look to execute a transformative
transaction in the UK, and further
diversification of our portfolio, we will
continue to be guided by a commitment
to generating value for our shareholders.
Amjad Bseisu
Chief Executive
EnQuest PLC Annual Report and Accounts 2024
Strategic Report
Corporate Governance
Financial Statements
14—15
Distinct skills
and capabilities
Industry-leading
sustainability
credentials, with
focus on safety
EnQuest is a top quartile
operator through the
life cycle of maturing
hydrocarbon assets,
and its compelling
decarbonisation and
renewable energy
strategy is anchored in
its unique infrastructure
position and strong
engineering and
subsurface capability.
Our strengths
How we are differentiated
Top quartile performance
across developments, wells,
operations, decommissioning
and technical support functions
Transferable capabilities that can
be deployed across all aspects of
the portfolio, different geographies
and decarbonisation and
renewable energy opportunities
Highly skilled, dedicated teams
with strong technical credentials
Board-supported commitment
to reach net zero with regard to
Scope 1 and Scope 2 emissions
by 2040; ten years ahead of UK
national target
UK Scope 1 and Scope 2 emissions
reduction of 40% versus 2018
baseline. EnQuest performance
tracking significantly ahead of
North Sea Transition Deal targets
Lost time incident frequency of 1.55
in 2024. UK average is 1.63
Average asset production
uptime during 2024
90%
Reduction in UK Scope 1
and Scope 2 emissions
versus 2018 baseline
40%
Read more in the Operating
Review on
Page 20
and the
Financial review on
Page 34
Our strengths
Uniquely
positioned to
capitalise on
transition projects
Differentiated
UK tax positioning
Track record
of delivering
accretive
acquisitions
EnQuest is a top quartile operator,
primed for growth
EnQuest has an exclusive right
to develop renewable energy and
decarbonisation projects at Sullom
Voe Terminal
Veri Energy, a wholly owned EnQuest
subsidiary, provides dedicated
management of projects
EnQuest will provide support
in a capital-light manner,
while enabling Veri Energy to
leverage support from financial
and strategic partnerships
EnQuest holds significant
recognised UK tax loss position of
c.$2.1 billion as at 31 December 2024
The UK Energy Profits
Levy enhances
EnQuest’s relative tax advantage
versus full tax-paying peers
EnQuest plans to accelerate tax
loss benefit through acquisition
of value-accretive assets, with
immediate M&A focus in the UK
Since inception, EnQuest has
extended the economic lives
of all nine operated assets
Asset acquisitions have
typically achieved payback
within 12-18 months
Entrepreneurial, innovative
approach taken to structure
past deals with limited upfront
consideration and focus on value
Total anticipated annual
carbon storage potential
from CCS project
10mtpa
Comparative cash flow
due to tax advantage
1
2.8x
Life extension achieved
at Magnus, PM8/Seligi and
Dons following acquisition
10+yrs
1
Based on a full UK taxpayer retaining 22%
post-tax income vs EnQuest retaining 62%
post-tax income given CT/SCT tax loss position
EnQuest PLC Annual Report and Accounts 2024
Strategic Report
Corporate Governance
Financial Statements
16—17