LONDON – North Sea/offshore Malaysia producer EnQuest is targeting opex savings this year of around $190 million, bringing costs down to $335 million.
For 2021, the company will pursue operating expenditures of close to $12/boe.
Reductions will come primarily from cost savings at the Heather and Thistle/Deveron field centers in the UK northern North Sea.
The company plans capex cuts of $110 million to around $120 million. Most of its program for 2020 relates to the recently completed drilling program at Magnus in the East Shetland basin and the two-well campaign is now under way on Kraken’s western flank.
Assuming the company follows through with its proposal not to re-start production at Heather and Thistle/Deveron, its full-year production should total in the range 57,000-63,000 boe/d.
Economic production at Alma/Galia in the central North Sea looks set to cease in the second half of 2020.
EnQuest added that it had introduced restrictions on offshore travel, including self-declaration by, and isolation of, individuals that have been to areas affected by COVID-19, with pre-mobilization temperature checks in operation at most locations.
Additional offshore isolation capability and agreements are in place to transport impacted individuals ashore in dedicated helicopters.
At the Sullom Voe Terminal on Shetland, the same processes have been implemented, with isolation capability at the local accommodation block. Non-essential down-manning has taken effect, with many of the company’s onshore staff working remotely.