The industry's built-in desire to deliver over-engineered solutions has to end if the North Sea is to enjoy a long and profitable future, a leading industry figure has claimed.
Enquest, the largest UK independent producer of oil in the UK sector, has agreed the sale of its new North Sea headquarters in Aberdeen for £45.1million.
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The North Sea is still a good return on investment, according to an industry boss. Enquest’s president for the North Sea, Neil McCulloch, said the sector was still very much open for business. The company leader spoke to Energy Voice as it confirmed a 20% slide in earnings. Despite the dip, Enquest’s North Sea assets posted a strong return with its Kittiwake Area (GKW) increasing production efficiency by 87% in the first half of the year.
A 50% drop in oil price has seen Enquest take a 20% financial hit.
Lime Petroleum Norway has extended an agreement with EnQuest Norge to acquire their 50% stake in each of the PL760 and PL760B licenses. The company is a jointly-controlled entity in which Hibiscus Petroleum owns a 35% stake.
Two companies are leading the way as they look at production efficiency challenges and how they can be overcome in the North Sea oil and gas industry. In a new whitepaper, both EnQuest and Wintershall explain how they are also working on future considerations and development plans within the UKCS.
Oil major Shell is expected to move to a three on, three off shift pattern at the start of 2016. The company previously revealed it was in consultation with staff over the move, which is in line with a number of companies including Chevron and EnQuest.
Cash-strapped oil and gas explorer EnQuest is set to raise £50million through the sale of its new headquarters building in a deal that was struck just weeks before staff move in.
EnQuest said production has rose 20% in the first four months of the year. The increase was largely due to a strong performance at its Malaysian asset, the oil producer said. Production rose to 30,768 barrels of oil equivalent per day (boepd) for the four months to April, from 25,597 barrels a year earlier.
A consultation by EnQuest into changes in shift patterns for offshore workers could mean a reduction in headcount of more than 100 contracted employees. The oil firm, had previously announced to staff it was considering a move to a three on, three off shift pattern, in line with a number of companies including Shell and Chevron. A consultation period is currently being carried out and is expected to last around 30 days. The move could see companies including KCA Deutag, Petrofac and Sodexo see a reduction in headcount of up t0 146 staff in total used by the operator . This total includes nine EnQuest jobs previously announced.
North Sea operator Enquest has told staff it plans to change the shift patterns of its offshore workforce as well as implement job cuts. Staff were contacted yesterday to hear about the firm’s plans to implement a three weeks on, three weeks off shift rotation. The company has also launched a 45-day consultation in an effort to cut jobs from amongst its estimated 500-strong North Sea workforce.
Independent oil producer EnQuest has become the latest firm to cut its contractor rates in the wake of the fall in oil prices.
Enquest has cut its spending for the year to $600million as a result of falling oil prices during the past seven months. The company said it had renegotiated its credit facility covenants as well as its capital expenditure. It is also working with contractors and the supply chain to achieve further cost savings.
Work on EnQuest’s new North Sea headquarters in Aberdeen is proceeding as planned despite the firm’s plunging share price and oil and gas industry woes. It is understood that there is no threat to the development in the heart of the Granite City, where EnQuest’s new north-east home – Annan House – is taking shape. It is part of a bigger project, known as The Grande, which is helping to regenerate a long-neglected part of Aberdeen.