EnQuest (LON:ENQ) told investors that the Alma/Galia oil field development is on track for ‘first oil’ in mid-2015.
The North Sea focussed E&P revealed that the 'EnQuest Producer' floating production, storage and offloading (FPSO) vessel is now moored in location at the field, and preparations to connect the vessel are now underway.
EnQuest repeated its 2015 production guidance between 33,000 and 36,000 barrels oil equivalent per day (boepd), which would be a 24% increase at the mid-point (i.e. 35,000).
Production increased 20.2% in the four months to the end of April, averaging 30,768 barrels oil equivalent per day.
The production growth is the result of a strong operation performance, EnQuest said, as it also highlighted the inclusion of volumes from recently acquired operation in Malaysia which was in line with expectations.
“The strong performance in our newly acquired Malaysia assets, where we took over operations late last year, is testament to our ability to quickly impact production in late life assets,” said chief executive Amjad Bseisu.
“Across the business, we continue to implement our programme of cost reduction, improved efficiency and capital expenditure rationalisation.”
Bseisu said EnQuest two major field development projects, namely Alma/Galia and Kraken (where ‘first oil’ is expected in 2017), continue to progress well.
“EnQuest is positioned to achieve substantial increases in production from both Alma/Galia and Kraken over the next two years, delivering material increases in cash flow," he added.