EnQuest takes on the Kraken

EnQuest is upping its holding of the Kraken North Sea oil discovery to a majority stake of 60 per cent.

The deal with First Oil will see EnQuest take a further 15% interest in blocks 9/2b and 9/2c in the East Shetland basin.

The amount Enquest will pay could be anywhere between $90m and $144m, dependent on analysis of the level of reserves at the site.

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The agreement will also see the firm acquiring a 15% interest in blocks 9/6a and 9/7b, for no extra money and is now subject to shareholder approval.

Following the transaction 15% of Kraken will be held by First Oil and 25% by Nautical.

"EnQuest's execution team is now leading this development and is taking on operatorship earlier than previously planned; we are combining forces with partners with deep expertise in this project," said Chief Executive Amjad Bseisu.

"EnQuest is moving forward one of the most exciting development projects in the UK North Sea."