The Group’s decommissioning operations include its Thistle/Deveron, Heather/Broom, Alma/Galia and The Dons.
EnQuest’s decommissioning directorate manages the decommissioning programmes for assets that have already ceased production and the Group’s mature producing assets which are between one and five years from cessation of production ‘CoP’.
The timely transfer of assets from the Upstream directorate allows for effective end of life field management and the development of relevant decommissioning programmes.
EnQuest acquired an interest in these fields in 2009 and put in place a program of work to extend their useful lives. Work was carried out on the wells and on the platform itself, which saw the asset’s life expectancy increase significantly.
In March 2020, EnQuest announced it no longer expects to re-start production at the Thistle field. A CoP application was approved by the regulator in July, with an effective decommissioning date of 31 May 2020. EnQuest’s share of post-tax costs have reduced to 6.1% (from 99.0%).
Project activities related to the removal of the redundant crude oil storage tanks were completed in July. The facility is expected to remain permanently unmanned for the remainder of 2020, with a well abandonment programme targeted for 2021.
Heather and Broom are adjacent oil fields that were produced through Heather Alpha, a fixed steel offshore platform, with Broom connected via a subsea tieback.
In February 2020, EnQuest confirmed it will not restart production from the Heather field following production being shutdown in late 2019. The Company received the necessary regulatory approvals from the UK Oil & Gas Authority in respect of CoP. EnQuest expects to begin a programme of well abandonment in 2021.
EnQuest’s decommissioning liability for the Heather field is 37.5% and Broom field is 63.0%.
The Alma and Galia fields were re-developed as a single joint development, revitalising reservoirs where production had previously been shut-in, and tied back to the EnQuest Producer Floating Production, Storage and Offloading ('FPSO') vessel.
On 30 June 2020, CoP occurred as planned. In September, the EnQuest Producer FPSO moved off station and has moored at the oil terminal jetty at Nigg.
The Dons are a collection of offshore oil fields that produce via subsea tiebacks to the Northern Producer Floating Production Facility. As the first fields owned by EnQuest, the redevelopment of the Dons area was a great example of EnQuest’s ability to create value.
As a mature development, the Dons are approaching the end of their productive life. They are being managed by our decommissioning team to enhance their working knowledge of the asset to facilitate effective decommissioning planning ahead of their eventual cessation of production, which is expected in the second quarter of 2021.
EnQuest’s decommissioning liability is in line with its equity working interest in each of the fields.