The Group’s upstream operations include its Magnus, Kraken, Greater Kittiwake Area, Scolty/Crathes and Alba assets.
EnQuest’s acquisition of an initial interest in Magnus in 2017 and the increasing of its interest to 100% in 2018, was welcomed by all stakeholders as having the “right assets, in the right hands” and reflected our production improvement and life-extension successes at our other assets. The acquisition has increased production and cash flow through the addition of significant low-cost 2P reserves. Magnus also has significant potential, with 2C resources of c.35 MMboe at the end of 2020, offering the Group significant low-cost drilling opportunities in the medium term, in addition to an estimated c.250 MMbbls of remaining mobile oil in place that requires further evaluation to identify future drilling and tie-back prospects.
Kraken is a heavy oil producing asset and is the largest single asset in EnQuest’s portfolio. First oil was delivered in June 2017, with the field development plan completed around the end of the first quarter of 2019. More than 40 million barrels of oil equivalent have been produced since first oil to end of 2020 and the Group is now embarking on the next stage of the field's development, with a producer and injector pair having been drilled into the western area during 2020. Assessment of further near-field, short-cycle drilling opportunities is ongoing.
Kraken is expected to have a long field life of over 20 years with the prospect of relatively low decommissioning costs.
The GKA area comprises five offshore oil fields: Kittiwake, Mallard, Gadwall, Goosander and Grouse. Through successful rejuvenation of the well stock, improving water injection capability and a focus on debottlenecking the production system, significant increases in volume and uptime have been achieved.
The Group recently announced that it has signed an agreement with Anasuria Hibiscus UK Limited to farm-down an 85% working interest in, and transfer operatorship of, the Eagle discovery located in the UK North Sea. EnQuest will retain a 15% non-operating working interest, with completion of the farm-down expected during the second quarter of 2021, subject to customary regulatory and third-party approvals.
The Scolty/Crathes development consists of a single horizontal well drilled in to each of the Scolty and Crathes fields. The fields are tied back to the Kittiwake platform and have greatly extended the useful life of this production hub.
Alba is the Group’s only non-operated producing asset, and is operated by Chevron.
In January 2021, EnQuest completed the transaction to buy a 40.81% interest and operatorship in the Bressay oil field, from Norwegian oil company Equinor, which retains a 40.81% interest in the field. The remaining 18.38% interest is held by Chrysaor.
Bressay is a heavy oil field east of the Shetland Islands, approximately 12 kilometres northeast of the Kraken field. Discovered in 1976, Bressay is believed to be one of the largest undeveloped oil fields in the UK continental shelf (‘UKCS’), with around 115MMbbls of net 2C resources.