A new North Sea oil company, EnQuest, joined the Stock Exchange yesterday and shares finished the day ahead of their opening price.
This follows international oil and gas facility service provider Petrofac demerging its UK continental shelf upstream assets in Petrofac Energy Developments.
Ayman Asfari, Petrofac group chief executive, said: “The demerger is an important realisation of our ‘harvest’ strategy.
“We remain fully committed to our energy developments business unit and will continue to pursue value-creating investments in oil and gas upstream and energy infrastructure developments.”
Amjad Bseisu, formerly chief executive of Petrofac Energy Developments and now chief executive of EnQuest, has resigned from the Petrofac board with immediate effect.
Petrofac owns 45% of EnQuest after contributing its West Don and Don Southwest assets and Eike discovery to the new company, and Sweden’s Lundin Petroleum owns 55% after putting its Heather, Broom, Thistle, and Deveron fields and Peik, South West Heather and Scolty finds into the new entity.
Trading in EnQuest shares started well yesterday on its opening day in London, opening at 97.5p and closing at 103.7p.
Petrofac shares were up 76.5p at £12.65.
Mark McCue, a divisional director at broker and wealth manager Brewin Dolphin in Aberdeen, said: “The demerger of the EnQuest business is seen as a positive move for Petrofac shareholders.
“Given that the majority of the management team at EnQuest were all part of the same business at Petrofac the business should prosper over the longer term.
“EnQuest does of course contain certain assets belonging to Sweden’s Lundin Petroleum, however, as a standalone business it should be able to use its leverage to increase its presence in the North Sea.
“Both EnQuest and Petrofac shares may remain volatile over the short term as investors assess their new holdings but, that said, the oil and gas sector as a whole looks attractive given the recent rising oil price and improving economic picture.”
EnQuest will have 90%-plus of its 220 staff and contractors working in or out of the Granite City, based at Petrofac’s Consort House in the city’s harbour area.
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