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    EnQuest buys into UK Golden Eagle area

Summary

EnQuest is eager to build up its portfolio, which has shrunk since 2019 as it has had to close down some of its older fields.

by: Joseph Murphy

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Complimentary, Natural Gas & LNG News, Europe, Corporate, Exploration & Production, Investments, News By Country, United Kingdom

EnQuest buys into UK Golden Eagle area

UK producer EnQuest has completed the purchase of a 26.7% stake in the CNOOC-operated Golden Eagle oil and gas area in the UK North Sea from Canada's Suncor, it said on October 22.

The area comprises the producing Golden Eagle, Peregrine and Solitaire fields, yielding its first oil in October 2014. EnQuest will pay Suncor an initial $325mn for the stake, and a contingency sum of up to $50mn.

EnQuest is eager to build up its portfolio, which has shrunk since 2019 as it has had to close down some of its older fields. It expects to net some 10,000 barrels of oil equivalent/day of production and 18mn boe of proven and probable reserves from the Golden Eagle deal.

"We are delighted to have completed the acquisition of a material interest in the high-quality, low-cost Golden Eagle development," EnQuest CEO Amjad Bseisu commented. "As a highly cash generative asset, delivering material incremental production, reserves and resources, Golden Eagle is a great addition to our portfolio, further strengthening the company."

Other shareholders in Golden Eagle include NEO Energy and One-Dyas.