C First Oil
First oil from the Scolty/Crathes development was achieved on 21 November 2016.
EnQuest CEO Amjad Bseisu said:
“EnQuest is pleased to confirm the delivery of first oil from Scolty/Crathes ahead of schedule and under budget, approximately a year after the Field Development Plan (‘FDP’) was approved and the project was sanctioned. This was the only offshore pure oil FDP approval in the UK North Sea in 2015. Unit operating costs are expected to be under $15/bbl in the initial peak volume years and production is anticipated to continue until 2025.
We thank our partners MOL Energy for their support and co-operation. I congratulate the project team, our contractors and sub-contractors – in particular Petrofac, Technip, Stena Drilling and ADIL – for the timely delivery of this project, through an impressive collaborative effort. The realisation of the potential of these ‘small pools’ has been enabled by cost efficiency, technology application and solid delivery.
The Oil and Gas Authority was set up to enable Maximising Economic Recovery (‘MER’) of oil and gas in the UK and Scolty/Crathes is an excellent example of MER being put into practice.”
Andy Samuel, Chief Executive of the Oil and Gas Authority (OGA) said:
“The safe and successful first oil milestone from Scolty and Crathes is testament to EnQuest and MOL’s efforts, working at pace and in excellent collaboration with the service sector to create efficiencies and value. This has unlocked the economic recovery of a small pools development and sustains the wider Greater Kittiwake Area and infrastructure. It embodies good asset stewardship which is crucial to achieving MER UK.”
Scolty and Crathes are two light oil accumulations in the Central North Sea, located approximately 160 km north east of Aberdeen
The fields are estimated to contain up to 15 million barrels of gross oil technical reserves
EnQuest holds a 50% interest, with MOL Growest (II) Ltd holding 50%
Scolty was discovered in 2007 by Lundin and Crathes in 2011 by EnQuest. The development plan consists of two single horizontal wells tied back over via subsea pipeline 25km in a ‘daisy chain’ fashion to the Kittiwake platform, in the Greater Kittiwake Area. Oil from Scolty and Crathes will be exported via the Forties Pipeline System.
Scolty/Crathes represents a key component in EnQuest’s hub model for Kittiwake, also extending the economic life of the Greater Kittiwake Area itself, well into the next decade.
In addition to holding a 50% interest in Scolty/Crathes, EnQuest also holds a 50% interest in the Greater Kittiwake Area.
EnQuest’s Kraken FPSO vessel sail away
EnQuest PLC is pleased to announce that following good progress on commissioning the water systems, the Floating, Production, Storage and Offloading (‘FPSO’) vessel, Armada Kraken for the Kraken field development, is expected to sail away in the coming days, from deep water anchorage off the coast of Singapore, for the North Sea. The journey should complete around mid-January 2017. The Kraken development project remains on course to deliver first oil in H1 2017. Meanwhile drilling is progressing to plan at Drill Centre Two following completion of Drill Centre One.
Scolty/Crathes First Oil
Following the successful drilling of the Scolty and Crathes wells in Q2 2016 and subsequent full completion of subsea and topsides scopes, including commissioning of the integrated system the Scolty/Crathes development is proceeding ahead of the schedule previously indicated, the first production wing valve is now open and the first well is flowing.
EnQuest therefore confirms the delivery of first oil from the Scolty/Crathes development ahead of schedule and under budget, approximately a year after the Field Development Plan (‘FDP’) was approved and the project was sanctioned. This was the only offshore pure oil FDP approval in the UK North Sea in 2015. Unit operating costs are expected to be under $15/bbl in the initial peak volume years and production is anticipated to continue until 2025.
EnQuest has been informed that the third party maintenance shutdown of the Brent Pipeline System (‘BPS’) may commence this week, for approximately three weeks, which would be a longer shutdown and later start date than previously anticipated. The Thistle and Dons fields would therefore also be fully shutdown for the entire BPS maintenance period as well as an additional short period either side, for ramp-down and ramp-up.
Average production for the ten months to the end of October was 40,857 Boepd, up 25% on the same period in 2015. This production reflects the successful planned maintenance shutdowns on Kittiwake and on PM8/Seligi in H2 2016, which are both now complete. Production at the end of the year is expected to benefit from the Scolty/Crathes development coming on stream and from the new production well K7 coming on line at Alma/Galia.
Taking into account the impact of the extended third party shutdown of the Brent Pipeline System, EnQuest would anticipate average daily full year 2016 production to be broadly around the average daily production level delivered to the end of October of 40,857 Boepd, and below its prior guidance of between 42,000 and 44,000 Boepd. Such an extended maintenance shutdown would not be expected to have an impact on the recovery of reserves as the reduced December 2016 production would be moved to later periods. Accordingly there would be no significant impact expected on the Company’s assets and liabilities, financial position, profits and losses, or prospects.
Placing and Open Offer Admission
Further to the announcement made by EnQuest on 17 November 2016 in respect of the Placing and Open Offer, it is expected that LSE Admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00 a.m. today and Stockholm Admission will become effective on or around 21 November 2016 and that dealings (for normal settlement) in the New Ordinary Shares will commence on the same day.
- Scolty Crathes are two light oil accumulations in the Central North Sea, located approximately 160 km north east of Aberdeen
- The fields are estimated to contain up to 15million barrels of gross oil technical reserves
- Gross peak oil production expected to be around 20,000 barrels of oil per day
- Field Development Plan approved October 2015, Lump Sum EPIC contracts awarded
- EnQuest holds a 50% interest, with MOL Growest (II) Ltd holding 50%
- 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.