Kufpec agrees on farm-in for North Sea Alma/Galia project

EnQuest has agreed to farm out a 35% interest to Kuwait Foreign Petroleum Exploration Co. (Kufpec) in the Alma/Galia oilfield developments in the UK North Sea.

Offshore staff

LONDONEnQuest has agreed to farm out a 35% interest to Kuwait Foreign Petroleum Exploration Co. (Kufpec) in the Alma/Galia oilfield developments in the UK North Sea.

Subject to regulatory approvals, Kufpec would invest about $500 million, including up to $182 million in future contributions for past costs and a development carry for EnQuest.

The capex for the project, which EnQuest operates, is being revised to include some added costs related to increased scope to extend the fields’ lives. EnQuest anticipates a total outlay for the development of roughly $1 billion. First production is scheduled for 4Q 2013, peaking at more than 20,000 boe/d.

Alma, previously known as Argyll, was the first UK North Sea oilfield development. It was abandoned at a relatively low water cut of 70%, due to constraints in available technology at the time.

EnQuest estimates remaining reserves at Alma and Galia at 29 MMboe. The planned development involves drilling seven production wells and two water injection/disposal wells, tied back to the modifiedFPSOEnQuest Producer. Facilities would be capable of processing high water cut levels up to 95%.

5/30/2012

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