Independent oil and gas firm EnQuest said today it is to fast-track its Kraken development after agreeing a deal to boost its stake in the North Sea field.
The firm plans to increase its 45% stake in Kraken to 60% through a deal to acquire a 15% interest off Aberdeen firm First Oil, halving the latter’s stake to 15%.
Kraken, a large heavy-oil accumulation in the east Shetland basin, is estimated to have recoverable reserves of 160million barrels of oil.
EnQuest chief executive Amjad Bseisu said: “EnQuest is pleased to increase further its interest in Kraken; we are enthusiastic about its potential.
“Our execution team is now leading this development and taking on operatorship earlier than previously planned; we are combining forces with partners with deep expertise in this project.”
Mr Bseisu added: “EnQuest is moving forward one of the most exciting development projects in the UK North Sea.”
The deal, which is subject to regulatory and partner consent as well as shareholder approval, will see EnQuest take the extra 15% in return for paying £56-£90million of First Oil’s development costs for the field.
It will also see EnQuest acquire a 15% interest in North Sea blocks 9/6a and 9/7b, for no additional consideration.
Nautical Petroleum owns the remaining 25% share of Kraken.