LONDON – EnQuest has completed its acquisition of a 75% interest in the Magnus oil field in the UK northern North Sea from BP, and an additional 9% stake in the Sullom Voe Terminal (SVT) and supply facility and associated infrastructure.
As a result, the company expects to gain around 60 MMboe of 2P reserves and 10 MMboe of 2C resources (as of Jan. 1, 2018).
Under the transaction, the net amount financed by BP and to be repaid out of the future cash flows from the 75% stake is around $100 million, subject to completion adjustments.
EnQuest CEO Amjad Bseisu said:“These assets are a strong strategic fit…to which we can apply our life extension expertise…
“The addition of Magnus is expected to add material production and cash flow… We continue to assess further value accretive, short-cycle opportunities that have been identified at Magnus.
“SVT is an essential element of our North Sea portfolio through which we flow over one-third of our North Sea production.
“We are on track to deliver around £50 million [$63.9 million] of cost savings in our first year as operator and plan further savings in 2019 while exploring opportunities for new business to maximize the terminal’s value.”
EnQuest now has a 100% controlling interest in Magnus, 15.1% in SVT, 18% in the Ninian pipeline system, and 41.9% in the offshore Northern Leg gas pipeline.