North Sea focussed EnQuest (LON:ENQ) has agreed a deal with British Gas owner Centrica to buy a 50% stake in the Greater Kittiwake area (GKA) assets.
EnQuest will pay US$39.9mln and assume US$5.1mln of debt to acquire the assets, which produce 2,000 barrels per day net and will add 4.7mln barrels to the group’s oil reserves.
It is also acquiring Centrica’s oil export pipeline which connects Kittiwake with the Forties field. The plan is to create a larger production hub by adding production from its nearby Scolty and Crathes development projects.
If the projects go ahead, with a tie-back to the pipeline, a further US$30mln payment will be due to Centrica under the terms of the deal.
"I am delighted to announce our acquisition of these Greater Kittiwake Area assets, giving us an additional UK hub and adding 4.7mln boe to our reserves,” said chief executive Amjad Bseisu.
“This acquisition fits within our goals of managing mature fields, and of exploiting nearby discoveries and near field exploration opportunities.
“Our Scolty and Crathes discoveries are within the area and would benefit from a tie-back to Kittiwake. These opportunities would also allow for the extension of the GKA field life.”