Skip to main content
  1. Home
  2. Drilling & production
  3. 08 Dec 15
  4. Enquest:operations update

Enquest:operations update

Oilfield Technology,


Key highlights

  • Production averaged 35 022 boe/d to end of November, up 26% on the same period last year and with a 39% increase to 41 360 boe/d from July to November Vs H1 2015. On 18 November, EnQuest delivered its first individual day’s production total of over 50 000 bbls.
  • Operating costs continue to be reduced, now ahead of target and expected to be US$31-32/bbl in 2015.
  • Alma/Galia: Since first oil on 27 October, Alma/Galia has been performing as anticipated by EnQuest’s reservoir modelling. Average net daily production of four thousand barrels a day was achieved in the month of November, predominantly from the first two Alma wells. The Galia well was also brought onstream in the second half of November and this well alone has produced approximately seven thousand barrels per day gross since late November.
  • Kraken: The project continues on schedule for first oil in H1 2017; capex costs for the project have now been reduced by over 10%, bringing the expected gross capex to US$2.86 billion. The Kraken FPSO vessel continues to be on track for delivery in 2016.
  • Scolty/Crathes: The Scolty/Crathes field development plan has been approved and sanctioned. The project benefits from limited cash capital expenditure until first oil in 2017 and extends field life for the GKA field. Including this field life extension, unit capital costs for the project are under US$20/bbl. Unit operating cost should be under US$15/bbl in the initial peak volume years.

    • Outlook highlights

  • EnQuest’s average production guidance for the full year 2016 is for between 44 000 boe/d to 48 000 boe/d
  • Unit Opex: EnQuest is on course to achieve an average unit opex in the range US$26-28/bbl in 2016.
  • Hedging of 10 million bbls remains in place for 2016.
  • Scolty/Crathes: Drilling of the development wells is due to commence by the middle of 2016, with first oil anticipated in H1 2017.
  • Net debt is planned to increase during 2016 ahead of Kraken first oil, with debt repayments anticipated being made from H2 2017 onwards.

    • EnQuest CEO Amjad Bseisu said:

    “EnQuest is addressing its priorities in this low oil price environment: delivering on production and execution targets, streamlining operations and strengthening the balance sheet.

    Production in H2 2015 has been very strong across the portfolio, averaging 41 360 Boepd from July to November, including spot rates of c.14 000 boe/d gross from the Alma/Galia development which was put onstream in late October. The Kraken development continues firmly on schedule. At the mid-point of our guidance ranges for 2015 and 2016, we are now forecasting a further 33% growth in production next year, before Kraken and Scolty/Crathes come onstream.

    We have continued to reduce operating costs which are now expected to be US$31-32/bbl in 2015 and are currently expected to be in the US$26-28/bbl range for 2016, ahead of our earlier expectations.

    EnQuest is improving its balance sheet with good operational performance. We have reduced Kraken capital expenditure by c.10% and average development cost/barrel around our established operated hubs is approximately US$18/bbl in 2015. The 2015 drilling programme is below budget, with very high operating efficiencies across our operated rigs and significantly lowered spread rates.

    With 2016 capex focused on Kraken, net debt is planned to increase during 2016 ahead of Kraken first oil. Capex will be substantially reduced in 2017 and will further reduce in subsequent years. Debt repayments are anticipated to be made from H2 2017 onwards.”


    Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/08122015/enquest-operations-update/

    You might also like

     
     

    Embed article link: (copy the HTML code below):

     

    This article has been tagged under the following:

    Oil & gas news