EnQuest PLC AGREEMENT WITH BP ON THISTLE DECOMMISSIONING (4064D)
January 31 2018 - 2:00AM
UK Regulatory
TIDMENQ
RNS Number : 4064D
EnQuest PLC
31 January 2018
ENQUEST PLC, 31 January 2018.
AGREEMENT WITH BP ON THISTLE DECOMMISSIONING
Following the completion of the acquisition of an initial 25%
interest in the Magnus oil field on 1 December 2017, EnQuest PLC
('EnQuest') is pleased to announce it has agreed with BP to
undertake the management of the physical decommissioning activities
for Thistle and Deveron.
Under the terms of this agreement with BP:
-- EnQuest will receive $30 million in cash in exchange for
undertaking the management of the physical decommissioning and
making payments by reference to 3.7% of the gross decommissioning
costs of the Thistle and Deveron fields when spend commences,
subject to a cap of GBP57 million. EnQuest's current estimate of
its exposure to decommissioning costs is lower than the $30 million
cash being received; and
-- EnQuest will also have an option, exercisable over a 12 month
period, to receive a further $20 million in cash in exchange for
making additional payments by reference to 2.4% of the gross
decommissioning costs of these fields, subject to a cap of GBP42
million.
The transaction aligns the interests of the parties involved in
the production and decommissioning phases, reflecting the
industrial logic for the operator to undertake the decommissioning
of these assets.
Ends
For further information please contact:
EnQuest PLC Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive)
Jonathan Swinney (Chief Financial Officer)
Ian Wood (Communications & Investor Relations)
Tulchan Communications Tel: +44 (0)20 7353 4200
Martin Robinson
Martin Pengelley
Notes to editors
ENQUEST
EnQuest is one of the largest UK independent producers in the UK
North Sea. EnQuest PLC trades on both the London Stock Exchange and
the NASDAQ OMX Stockholm. Its operated assets include
Thistle/Deveron, Heather/ Broom, the Dons area, Magnus, the Greater
Kittiwake Area, Scolty/Crathes Alma/Galia and Kraken; EnQuest also
has an interest in the non-operated Alba producing oil field. At
the end of December 2017, EnQuest had interests in 25 UK production
licences and was the operator of 23 of these licences.
EnQuest believes that the UKCS represents a significant
hydrocarbon basin, which continues to benefit from an extensive
installed infrastructure base and skilled labour. EnQuest believes
that its assets offer material organic growth opportunities, driven
by exploitation of current infrastructure on the UKCS and the
development of low risk near field opportunities.
EnQuest is replicating its model in the UKCS by targeting
previously underdeveloped assets in a small number of other
maturing regions; complementing its operations and utilising its
deep skills in the UK North Sea. In which context, EnQuest has
interests in Malaysia where its operated assets include the
PM8/Seligi Production Sharing Contract and the Tanjong Baram Risk
Services Contract.
Forward looking statements: This announcement may contain
certain forward looking statements with respect to EnQuest's
expectation and plans, strategy, management's objectives, future
performance, production, reserves, costs, revenues and other trend
information. These statements and forecasts involve risk and
uncertainty because they relate to events and depend upon
circumstances that may occur in the future. There are a number of
factors which could cause actual results or developments to differ
materially from those expressed or implied by these forward looking
statements and forecasts. The statements have been made with
reference to forecast price changes, economic conditions and the
current regulatory environment. Nothing in this presentation should
be construed as a profit forecast. Past share performance cannot be
relied on as a guide to future performance.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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