LONDON – EnQuest has struck an agreement with BP on the management of decommissioning activities for the Thistle and Deveron production facilities in the UK northern North Sea.
Following the discovery of both fields in the early 1970s, 125 mi (201 km) northeast of the Shetland Islands, BP, in partnership with BNOC and Britoil, installed the Thistle A platform, drilling over 60 production and injection wells.
Operatorship later transferred to DNO, then Lundin Petroleum, and finally to EnQuest in 2010.
Under the agreement with BP, EnQuest will potentially receive $50 million in cash toward managing physical aspects of the decommissioning when spending starts on the program.
This is in exchange for making payments equivalent to small percentages of the gross decommissioning costs, subject to total caps of close to £100 million ($141 million).
EnQuest says the transaction aligns the interests of the parties involved in the production and decommissioning phases, reflecting the industrial logic for the operator to undertake decommissioning of the assets.