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.
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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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."
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published