Viaro acquires 15% interest in Bressay and EnQuest Producer FPSO

A subsidiary of Viaro Energy, RockRose UKCS 10, has picked up a 15% stake in the Bressay field and EnQuest Producer FPSO.

EnQuest announced that it sold the share of the field and vessel to the Viaro subsidiary, both of which are located in UK waters, this morning.

Viaro has said that the deal provides support for the Bressay development and “paves the way for a Field Development Plan to be advanced in line with EnQuest’s ongoing plans.”

Under the terms of the agreement, the total consideration in respect of the Bressay field and FPSO is £46.0 million.

The deal will involve an initial payment by RockRose to EnQuest of £34.75 million, which will be used for general corporate purposes.

The remaining £11.25 million is to be paid from future Bressay cash flows.

Bressay has more than 115 MMbbls of net 2C reserves and has an estimated potential to extract around 200 million boe, making it one of the largest undeveloped oil fields in the UK.

Discovered in 1978, Bressay lies in UK blocks 3/28a, 3/27b, 3/28b, 9/2a, and 9/3a of the Northern North Sea, east of the Shetland Islands.

Steve Bowyer, general manager of North Sea for EnQuest said: “We continue to progress the development of the wider Kraken area, including a Bressay gas tie-back solution to reduce Kraken emissions, as well as an early production solution project at Bressay.

“We look forward to working with Rockrose, Waldorf (our Kraken JV partner) and the NSTA to move the project forward.”

Bressay is located near EnQuest’s Kraken FPSO and has been previously considered as a tieback to the project.

Earlier in the year Equinor and Harbour Energy exited their stakes in the Bressay oilfield due to the windfall tax.

Following the exit of the two firms EnQuest became the 100% owner of the development.

Harbour Energy previously held an 18.3% interest in the field, while Equinor held 40%, having sold another 40% share to EnQuest in 2020.

© Denny Floegstad

The EnQuest Producer FPSO is currently laid up in the Cromarty Firth and has been for some time now.

However, EnQuest said in 2021 there was “significant interest” in the vessel.

Francesco Mazzagatti, chief executive of Viaro Energy, commented: “We are grateful to the team at EnQuest for the smooth negotiation process on the Bressay acquisition.

“Long considered one of the largest developments on the UK Continental Shelf, Bressay is an essential component of the country’s effort to secure viable energy sources in the long term.

“Apart from its significant potential to contribute to the UK’s energy security, ensuring the development of Bressay is crucial in order to encourage more investments in the UKCS, where we hope the tax regime will soon stabilise.

“It is an important addition to our portfolio, as it not only confirms our serious commitment to support the development of North Sea assets to their fullest potential, but also fits into our strategy to continuously reinvest into new assets and development opportunities.

“Considering EnQuest’s successful track record with the surrounding developments in the area, we are confident they are the right partner to ensure that the extraction will be aligned with the highest industry standards.”