Petrofac, Lundin to combine UK North Sea assets
Petrofac PLC plans to combine its UK North Sea assets with those of Lundin Petroleum AB’s to form a new company called EnQuest PLC.
OGJ Senior Staff Writer
HOUSTON, Mar. 4 -- Petrofac PLC plans to combine its UK North Sea assets with those of Lundin Petroleum AB’s to form a new company called EnQuest PLC.
Upon closing, EnQuest will be an independent production and development company focusing on the UK Continental Shelf. Petrofac shareholders will own 45% of EnQuest shares, and Lundin shareholders will own 55%.
EnQuest will start out with 80.5 million boe of proved and probable reserves, executives told analysts in a conference call.
The transaction remains subject to approval by Lundin and Petrofac stockholders and UK regulators. Lundin executives expect the transaction will be completed early in the second quarter.
Petrofac’s board said Mar. 4 that it plans to demerge Petrofac Energy Developments Ltd. (PEDL) from Petrofac. PEDL holds Petrofac’s UKCS assets.
PEDL’s assets include a 27.7% interest in West Don field, 60% interest in Don Southwest field (of which 5% is held through PEDL subsidiary Petrofac Energy Development Oceania Ltd.), and 100% interest in the Elke oil discovery on Block 28/3 in the central North Sea.
West Don field was developed along with nearby Don Southwest field. West Don production started in April 2009 using a refurbished floating production facility, the Northern Producer.
Some 150 km northeast of the Shetland Islands, West Don field straddles Blocks 211/13b and 211/18a (Licenses P.1200 and P.236 respectively) of the northern North Sea.
From Lundin, EnQuest will acquire interests in Heather, Broom, Thistle, and Deveron oil fields and the Peik, South West Heather, and Scolty discoveries.
Lundin currently has 100% interest in Heather field, 99% interest in Deveron field, 99% in Thistle field, and 55% interest in Broom field.
EnQuest also will acquire Lundin’s 40% interest in the Scolty discovery and 33% interest in Peik gas-condensate discovery. The undeveloped Peik field straddles the UK and Norwegian median line, Lundin said.
Contact Paula Dittrick at email@example.com.