EnQuest in $1.4 billion North Sea Kraken field development

11/15/2013

EnQuest in $1.4 billion North Sea Kraken field development 

BY BRIAN SWINT

(Bloomberg) -- EnQuest Plc, a North Sea oil and gas producer, said it will spend $1.4 billion to bring the Kraken oilfield to production in 2017.

“This is the largest investment in the U.K. North Sea this year,” CEO Amjad Bseisu said in a telephone interview. “This should bring us up to 50,000 barrels a day of production.”

Kraken, a discovery containing 137 million barrels of oil, will attract 4 billion pounds ($6.4 billion) of investment over the 25-year life of the field, EnQuest said today. The project will help EnQuest reach a goal of more than doubling output from about 23,000 barrels a day in the first 10 months of 2013.

EnQuest maintained its production forecast for this year of 22,000 barrels to 24,500 barrels of oil equivalent a day. The outlook for 2014 is “positive,” Bseisu said.

Shares were little changed at 134.4 pence as of 8:45 a.m. in London. The stock has gained 12 percent this year.

EnQuest arranged a $1.7 billion credit facility in the fourth quarter, which gives it the ability to make acquisitions and develop more projects, Bseisu said.

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