EnQuest (LON:ENQ) has warned that the unplanned outage at the Ninian Central platform will affect its expected output for the year.
The company revised its guidance for the year ending 31 December 2024, saying that it expects its full year production to be slightly below its original 41,000-45,000 barrel of oil equivalent per day guidance range.
In early November, the Ninian Central platform, operated by CNR International UK, was subject to an unplanned outage. This shut in all system users, including production from Enquest’s Magnus oil field.
EnQuest led a short dive support vessel (DSV) campaign to inspect and repair the subsea hydraulic system, with production now returned to pre-outage levels.
According to the company, this event disrupted a strong second half performance across its upstream portfolio.
The Ninian Central platform suffered another outage, this time in August, forcing it to operate for five days with only limited emergency power, leaving workers without hot water, hot food, adequate lighting and laundry services.
In a statement at the time of the August outage, CNR International (UK) said: “The safety of personnel is a core value for CNR International, and the company has been in
regular contact with the crew safety representatives to update them on progress.”
In addition, EnQuest said it has accelerated an investment in flare gas recovery at Magnus to further enhance asset performance, reduce emissions, and optimise free cash flow in 2025.
As a result, it expects its 2024 capital expenditure to total around $250 million, with a net reduction in 2024 free cashflow of about $15m.
Group 2024 operating and decommissioning expenditure guidance is maintained at approximately $415m and around $70m, respectively.
EnQuest also said that the joint venture partners involved in the Kraken project were unable to agree a 2025 asset drilling programme.
EnQuest therefore has reached an agreement with Dolphin Drilling to terminate the rig contract, at a net cost of $14.6m.
This cancellation provides the opportunity to reduce 2025 net capex by around $60m.
EnQuest plans to reschedule the Kraken infill wells as part of a wider programme of drilling in 2026.
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