EnQuest to operate Bressay field with Equinor farmout

July 31, 2020
EnQuest PLC has acquired interest in and operatorship of Brassay oil field offshore UK from Equinor.

EnQuest PLC has acquired interest in and operatorship of Brassay oil field offshore UK from Equinor.

Equinor will farmout 40.8125% interest for initial consideration of GBP 2.2 million, payable as a carry against 50% of Equinor’s net share of costs, and a contingent consideration of $15 million following authority approval of a field development plan.

Bressay was discovered east of Shetland in 1976 and Equinor became operator in 2007. Concept selection for field development was deferred in 2016 due to challenging market conditions and the need to simplify the development concept.

Arne Gürtner, Equinor’s senior vice-president for UK & Ireland offshore, said experience from existing Mariner and Kraken heavy oil developments will strengthen the project.

Production at Kraken, EnQuest’s largest single asset, began in June 2017, with the field development plan completed around the end of first-quarter 2019. More than 26 MMboe have been produced since first oil to end-2019. Equinor-operated Mariner began production in August 2019. Both Bressay and Mariner fields contain 11-14° gravity oil with a 64-550 cp viscosity.

The transaction, subject to customary conditions including partner and authority approval, is expected to close in this year’s fourth quarter. Following completion, EnQuest will hold 40.8125% interest and operatorship, Equinor will hold 40.8125%, and Chrysaor will retain 18.375%.