NORTH Sea-focused Enquest has said it is on track to start pumping oil soon from one of the biggest new developments competed in the area in recent years and made clear it also sees potential in mature fields.
London-based Enquest said it expects to deliver first oil from the giant Kraken field off Shetland before the end of June after making good progress with drilling.
The start of production will provide a boost for the hard-pressed industry in the North Sea, where firms are battling with the fall out from the sharp fall in crude prices since 2014.
While exporting countries agreed to extend curbs on production for nine months to March at yesterday’s Opec meeting as expected, analysts think Brent crude is likely to trade below $60 per barrel for some time.
It fell slightly yesterday, to around $53.50/bbl in afternoon trading. That compares with $115/bbl in June 2014.
Enquest chief executive Amjad Bseisu said the start of production from Kraken will allow the firm to start generating a cash return on the hefty investment it has made in developing the field with Cairn Energy.
Edinburgh-based Cairn has predicted Kraken will generate lots of cash at current prices, helped by the use of modern technology.
The cost of services has fallen in the North Sea amid the downturn.
Enquest is also investing in the Magnus field north of Shetland, one of the oldest in the North Sea. Mr Bseisu said Magnus provides the potential for significant future growth.
Enquest bought stakes in Magnus and Sullom Voe terminal on Shetland from BP in January in an $85 million deal,.
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