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Late-year start-up probable for North Sea Alma/Galia project

Offshore staff

LONDON – EnQuest expects to invest about $750 million this year on its upstream operations.

Around $350 million is allocated to the Alma/Galia development in the UK North Sea and roughly $75 million for pre-development work on the heavy oil Kraken development in the northern North Sea, prior to submission of the field development plan. The Kraken sum includes an appraisal well to be drilled this spring. First oil is targeted for 2016.

EnQuest expects to produce first oil from Alma/Galia this fall. Last month, the company announced an increase in the project’s scope and specification, aimed at extending the field life, optimizing operating costs, and allowing a potential second phase of development.

Elsewhere in the UK North Sea, the company is evaluating options for the proposed Crathes/Scolty development, and continues development studies for the Crawford/Porter fields.

Recently, the company sanctioned the next phase of its Thistle field life extension project in the northern UK North Sea, assisted by its qualification for the UK government’s new brownfield allowance program.

The current Thistle drilling campaign has been extended, with a new production well to be drilled this spring in the West fault block. Drilling on Thistle will then be suspended for a year to allow for continuation of the life extension program.

A planned drilling program at the Heather complex will start this summer, following completion of drilling on Thistle.

The company plans further appraisal drilling on the UK Cairngorm structure, and an exploration/appraisal well later this year in the Sabah area, offshore Malaysia.

The Don Southwest Area 6 DS producer should come online in 2Q 2013, and an associated water injector well is scheduled to be drilled later in the year. The West Don W6 (NJ) water injector well was tied in and brought onstream earlier this year.

3/27/2013

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