EnQuest PLC, 20 November
2024
Operations
update
EnQuest PLC ('EnQuest' or the 'Group') announces the following
operational updates, with revisions to guidance for the year ending
31 December 2024.
In early November an unplanned
outage at the third-party operated Ninian Central Platform
('Ninian') shut in all system users, including Magnus production.
EnQuest led a short dive support vessel ('DSV') campaign to inspect
and repair the subsea hydraulic system, with production now
returned to pre-outage levels. This event disrupted what was
otherwise a good second half performance across EnQuest's upstream
portfolio, with annual shutdowns completed on time and to cost,
with good subsequent field delivery and continued high operational
uptime.
Due to the impact of the Ninian
outage, EnQuest now expects its full year production to be slightly
below its 41 to 45 Kboepd guidance range.
EnQuest has accelerated an
investment in flare gas recovery at Magnus to further enhance asset
performance, reduce emissions, and optimise free cash flow in 2025.
As a result, 2024 capital expenditure is expected to total c.$250
million, with a net reduction in 2024 free cashflow of c.$15
million. Group 2024 operating and decommissioning expenditure
guidance is maintained at c.$415 million and c.$70 million,
respectively.
At Kraken, the joint venture
partners were unable to agree a 2025 asset drilling programme.
EnQuest therefore has reached an agreement with Dolphin Drilling to
terminate the rig contract, at a net cost of $14.6 million. This
cancellation provides the opportunity to reduce 2025 net capex by
c.$60 million. EnQuest plans to reschedule the Kraken infill wells
as part of a wider programme of drilling in 2026.
- Ends -
For further information, please
contact:
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EnQuest PLC
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Tel: +44 (0)20 7925 4900
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Amjad Bseisu (Chief Executive
Officer)
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Jonathan Copus (Chief Financial
Officer)
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Craig Baxter (Head of Investor
Relations and Corporate Affairs)
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Teneo
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Tel: +44 (0)20 7353 4200
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Martin Robinson
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Harry Cameron
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Notes to editors
This announcement has been
determined to contain inside information. The person responsible
for the release of this announcement is Chris Sawyer, General
Counsel.
ENQUEST
EnQuest is providing creative
solutions through the energy transition. As an independent energy
company with operations in the UK North Sea and Malaysia, the
Group's strategic vision is to be the partner of choice for the
responsible management of existing energy assets, applying its core
capabilities to create value through the transition.
EnQuest PLC trades on the London
Stock Exchange.
Please visit our website
www.enquest.com
for more information on our global
operations.
Forward-looking statements: This announcement may contain certain forward-looking
statements with respect to EnQuest's expectations and plans,
strategy, management's objectives, future performance, production,
reserves, costs, revenues and other trend information. These
statements and forecasts involve risk and uncertainty because they
relate to events and depend upon circumstances that may occur in
the future. There are a number of factors which could cause actual
results or developments to differ materially from those expressed
or implied by these forward-looking statements and forecasts. The
statements have been made with reference to forecast price changes,
economic conditions and the current regulatory environment. Nothing
in this announcement should be construed as a profit forecast. Past
share performance cannot be relied upon as a guide to future
performance.