EnQuest (LON: ENQ) has hired a Dolphin Drilling rig for new wells at the Kraken oilfield after production issues this year.
Kraken was the largest producer in the London-listed firm’s arsenal last year, but an “anomalous failure” brought it offline for parts of 2023.
It has since resumed production, and will return to drilling in 2025 after EnQuest hired the Borgland Dolphin rig for two new wells.
Dolphin said the hire is for 137 days plus mobilisation, as well as “significant” optional extensions to be confirmed within 90 days.
The Kraken FPSO in the northern North Sea was struck with the transformer unit issues during H1, which took the Kraken offline.
It returned to service in August after upgrades were made, and enjoyed 100% efficiency in September and October.
However the episode dented production at Kraken, with its average down to 13,471 barrels of oil equivalent per day (boepd) for the year to October 31, compared to 18,591 boepd in the same period during 2022.
It means the Magnus oilfield has become EnQuest’s top producer at 15,645 boepd, up 36% from 11,493 boepd in 2022 after a quicker-than-expected shutdown period and successful well campaigns.
The “North West Magnus” injector well was completed in May and the B6 infill well finished up in early August.
EnQuest said drilling activities continue at the field, with a sidetrack well to be completed in December followed by a well perforation scope.
Elsewhere the first of a four well campaign at CNOOC’s Golden Eagle asset, which EnQuest is partnered in, is expected to be brought online in late December with the rest by mid-2024.
© EnQuestOverall daily production for EnQuest has averaged 43,872 boepd, down from 46,593 boepd. The 2023 average is expected to be around the mid-point of existing guidance range of 42,000 boepd to 46,000 boepd.
Operating expenditure is expected to be $400m for the year, down $25m from original guidance primarily due to lower-than-budgeted chemical and diesel costs.
Meanwhile the firm continues to complete P&A of an “enhanced” plan of 25 wells across the Heather and Thistle fields in the Northern North Sea.
Delivery of that “would exceed the record for the most prolific multi-asset P&A campaign in the northern North Sea, set by EnQuest at 24 wells in 2022” the company said.
Looking ahead, CEO Amjad Bseisu said: “Building on this excellent operational performance and by remaining disciplined in our investment decisions, we are on track to deliver on our 2023 targets.
“We are encouraged by government announcements relating to the fiscal regime governing the UK’s oil and gas sector as we remain engaged in efforts to encourage legislation which supports investment in the UK’s delivery of energy security, decarbonisation and energy transition.
“Looking ahead towards 2024, we remain focused on utilisation of our differentiated tax advantage as we look to unlock organic and inorganic opportunities to grow the business and create a pathway to deliver returns to shareholders.”
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