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EnQuest strikes decommissioning deal with BP for North Sea fields

“The transaction aligns the interests of the parties involved in the production and decommissioning phases, reflecting the industrial logic for the operator to undertake the decommissioning of these assets"

oil and gas operations
EnQuest will receive US$30mln in cash

EnQuest Plc (LON:ENQ) has reached agreement with BP Plc (LON:BP) in regards to the decommissioning of Thistle and Deveron fields in the North Sea.

The smaller oil firm will receive US$30mln in cash from BP and, in exchange, it will manage the physical decommissioning. EnQuest will also be responsible for certain future decommissioning costs, 3.7% of the gross costs capped at a maximum of £57mln.

Cash options

EnQuest will also have the option to receive a further US$20mln in cash, and in return it would assume responsibility for additional future decommissioning payments (a further 2.4% of gross costs, up to a cap of £42mln).

“The transaction aligns the interests of the parties involved in the production and decommissioning phases, reflecting the industrial logic for the operator to undertake the decommissioning of these assets," EnQuest said in a statement.

Quick facts: Enquest Plc

Price: 25.2 GBX

AIM:ENQ
Market: AIM
Market Cap: £4.27 m
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