Delek in talks for stake in North Sea Kraken project

EnQuest is discussing a potential farm-out of 20% of the Kraken heavy oil project in the UK northern North Sea to a Delek Group subsidiary.

Offshore staff

LONDON -- EnQuest is discussing a potential farm-out of 20% of the Kraken heavy oil project in the UK northern North Sea to a Delek Group subsidiary.

The two parties have signed a non-binding memorandum of understanding and are working toward executing binding transaction documents.

If the transaction goes through, subject toEnQuest’s lending banks’ consent, Delek would accept its share of the project capex dating back to Jan. 1, 2016, and will advance $20 million to EnQuest over a period of up to five years.

Earlier this year, EnQuest increased its stake in Kraken to 70.5% through acquiring an additional 10.5% share fromfirst oil.

7/18/2016

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