EnQuest (LON: ENQ) will push ahead with a pipeline of some of the UK North Sea’s largest developments, with plans to “prove up” its heavy oil capabilities.
The “funnel of opportunities” cover Bentley and Bressay in the east of Shetland, some of the largest untapped developments in UK waters.
First on the list, due for a field development plan and final investment decision this year, is a gas project at the Bressay field, before moving in to a phased approach to recover its heavy oil.
That initial stage will produce the gas cap at the oilfield to decarbonise the Kraken FPSO, displacing diesel power generation, before tapping into its wider resources, estimated at around 200 million barrels of oil equivalent.
EnQuest North Sea manager Steve Bowyer told Energy Voice: “We’re moving forward with the gas development of Bressay, which is effectively producing the gas cap on the Kraken emissions reduction project.
“We’re looking to move that through field development planning phase and FID through the latter part of this year.
“That will create the fairway of the phasing of the oil development which will follow thereafter. So key priority at the moment is getting the gas development moving and then we’ll look at timings on the oil development phase.”
The firm acquired Bressay operatorship from Equinor in 2021 and farmed out a 15% stake to Viaro Energy in December.
Bentley
Once that project is going, it will open the next opportunity in Bentley – an even larger field which has been estimated to be able to produce up to 300 million barrels using enhanced oil recovery techniques.
It sits within 10 miles of Bressay and the Kraken fields.
Mr Bowyer said: “As you move through your heavy oil developments, Bressay’s the next logical one in terms of its heaviness.
“We think we’re the right operator to take Bentley forward but we clearly want to prove up our capabilities on Bressay next.
“So it’s almost like a funnel in terms of progressing. We’re looking at potential enhanced oil recovery on Kraken and keep optimising the Kraken asset. We’ll then take Bressay through via the gas development, then a phased oil development. Then we’ll see Bentley following thereafter.”
More M&A
Even with those projects – rivalled only by Rosebank and Cambo in the West of Shetland region – London-listed EnQuest is still focused on striking deals to grow its portfolio, said Mr Bowyer.
“We’ve got a really strong portfolio of assets. Kraken, Magnus and SVT and also internationally in Malaysia.
“We’re very focused on M&A so, having de-levered the balance sheet we’re looking for transformational growth. UKCS focused, then we’ll pivot internationally once we successfully grow the UK business.”
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