EnQuest Agrees to Decommision Fields for $50 Million
January 31 2018 - 3:52AM
Dow Jones News
By Oliver Griffin
EnQuest PLC (ENQ.LN) said on Wednesday that it has agreed with
BP PLC (BP.LN) to undertake the management of physical
decommissioning activities for Thistle and Deveron, two North Sea
oil fields, for $50 million.
EnQuest first reported that it had the option to decommission
the two fields on Jan. 24., when it announced the acquisition of a
25% stake from BP of the Magnus oil field.
The company said it would receive $30 million in cash for
managing the fields' decommissioning and making payments by
reference to 3.7% of the gross decommissioning costs, with an
option to receive an additional $20 million in cash in exchange for
making additional payments by reference to 2.4% of the gross
decommissioning costs.
EnQuest said that the transaction aligns the interests of all
the involved parties.
Shares at 0810 GMT were up 1.2%, or 0.45 pence, at 38.15
pence.
Write to Oliver Griffin at oliver.griffin@dowjones.com
(END) Dow Jones Newswires
January 31, 2018 03:37 ET (08:37 GMT)
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