LONDON – EnQuest has agreed to acquire Centrica’s Greater Kittiwake Area (GKA) production assets in the UK central North Sea, and Centrica’s 100% interest in the 33-km (20.5-mi) Kittiwake to Forties oil export pipeline.
Assuming regulatory and third-party approvals, EnQuest will pay a base consideration of $39.9 million and assume net debt of US $5.1 million, subject to working capital and other adjustments.
Additionally it will pay $30 million, contingent on regulatory consent for a field development plan due to be submitted next year for the Scolty field and/or the Crathes field, via a tieback to the Kittiwake platform. EnQuest has a 40% interest in both fields. Commercial discussions are under way between the Scolty/Crathes and Kittiwake partnerships.
More payments to Centrica could follow dependent on future exploration success in the area, on two defined prospects in block 21/19.
Centrica has a 50% share in the GKA fields, with net production currently of around 2,000 boe/d, and net remaining reserves of 4.7 MMboe. Production from the Grouse andMallard fields is currently shut in for operational reasons.
The deal would provide EnQuest with a new hub in the central North Sea.
EnQuest CEO Amjad Bseisu said: “This acquisition fits within our goals of managing mature fields, and of exploiting nearby discoveries and near field exploration opportunities…The transaction also provides infill drilling opportunities in the Greater Kittiwake Area fields and improves the potential from exploration opportunities, both in the GKA area and in our existing acreage nearby.”
The GKA spans blocks 21/12a (license P.073), 21/12d (P.1786), 21/17a (P.1415), 21/17c (P.1415), 21/18a (P.351) and 21/19 (P.238), and includes the Kittiwake, Mallard, Gadwall, Goosander, and Grouse fields. Water depths vary from 85-90 m (279-295 ft).
These have been developed as subsea tiebacks to a steel platform over Kittiwake, initially installed and operated by Shell Expro, and later transferred to Venture Production (which was subsequently acquired by Centrica). The platform has an oil capacity of 29,000 b/d and a water injection capacity of 57,000 b/d.
Oil is piped to theForties Unity platform and then to shore at Cruden Bay, eastern Scotland, via the Forties pipeline system.