North Sea-Focused EnQuest Ups Output in 2019

UK oil and gas firm EnQuest lifted production by 24% last year, it reported on February 4, but forecasts a decline in 2020 as a result of platform closures.

The company produced 68,606 barrels of oil equivalent (boe)/day in 2019, up from 55,447 boe/day in the previous year. Growth was achieved across its operations in the northern and central North Sea, and in Malaysia. The Enquest-operated Kraken oil project in the North Sea ramped up to 25,172 boe/day, from 21,369 boe/day in 2018.

EnQuest ended 2019 with $1.41bn of net debt, down from $1.77bn a year earlier, thanks to strong cash flow. It also benefited last year from a 10% cut in unit operating costs to $21/boe.

“The group has again delivered on its operational targets, growing production by 24%. Kraken performance in particular has been excellent, with production efficiency above 90% for much of the second half of the year,” CEO Amjad Bseisu said.

This improved performance has helped EnQuest pay back its credit facility faster, he said, with its net debt to Ebitda ratio expected to be below 1.5 as of year-end.

However, Enquest warned that production was expected to fall in 2020 to between 61,000 and 68,000 boe/day, because of natural decline and its Heather and Thistle platforms remaining closed. A fire broke out at Heather in October last year, while it was already shut down for repairs, and Thistle was taken offline later that month after problems were discovered with a plate connecting a storage tank with its legs.