EnQuest (LON: ENQ) said Thursday it will push on with plans to slash emissions at its Kraken FPSO using gas from a new tie-back to the Bressay oilfield.
The London-listed operator said associated gas from the planned oil development will be used to replace diesel power generation on the Kraken FPSO.
The firm has been seeking solutions to decarbonise Kraken, which it said in 2022 was “almost impossible to electrify”.
EnQuest has not disclosed emissions projections from the fuel replacement.
EnQuest had previously been exploring biofuel, an area the NZTC has insisted could play a crucial role in decarbonising assets across the UK if suppliers set up shop in the UK.
It said Thursday that it is making preparations “for a future tieback of the Bressay field’s gas cap to Kraken; displacing diesel that currently powers Kraken operations”.
Bressay
It comes after EnQuest farmed-out 15% of Bressay and the EnQuest Producer FPSO to Viaro Energy in December.
Discovered in 1978, Bressay lies east of Shetland in the Northern North Sea with potential for 200 million barrels of oil equivalent to be extracted.
Timelines for first production haven’t been disclosed.
In December, North Sea general manager Steve Bowyer said the gas project could be an “early production solution” at Bressay.
Spending for 2024 growth pivot
EnQuest will spend nearly $700m on operations, new investment and decommissioning in 2024 as it “pivots to growth”.
In a trading update, the London-listed operator said operational expenditures will be around $415m to hit guidance of 41,000 – 45,000 barrels of oil equivalent per day (2023: 43,800 boed).
Cash capital spending is expected to be around $200m, including a two-well campaign the Magnus oilfield in the North Sea following a five-years rig recertification.
Meanwhile a four-well platform drilling campaign at CNOOC’s Golden Eagle field (Enquest: 26.69%) is expected to complete mid-2024.
Elsewhere purchases of long-lead equipment will take place to facilitate a two-well sidetrack programme at Kraken.
EnQuest said spending would also include capital investments for reducing carbon emissions.
This includes a new stabilisation facility and electricity power grid connection at the Sullom Voe Terminal in Shetland and the gas development for Kraken.
CEO Amjad Bseisu said: “Building on this excellent operational performance and by remaining disciplined in our investment decisions, we have set the foundation for a pivot to growth during 2024. The Group will provide an update on shareholder return plans when we announce our final audited results in March.”
EnQuest is expected to publish its full year results on March 28.
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