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EnQuest lowers FY output guidance

23 August 2017 07:46

EnQuest's has lowered its full-year output guidance.

The group said output in the first half was 37,015 barrels of oil equivalent per day.

It said: "With prolonged commissioning leading to lower than expected operational efficiency from the Kraken FPSO vessel to date, production volumes have been lower than forecast and EnQuest's overall average daily production for the full year 2017 is now anticipated to be as per the first half 2017 production rate, plus or minus 10%.

"This reduction in EnQuest's short term 2017 production guidance, is consistent with EnQuest's objective of bringing Kraken onstream in a phased manner in line with good reservoir management practices aimed at maximising long term productivity and value. We do not expect the current operational issues in the Kraken ramp-up to continue beyond 2017." The group said net debt at the end of June, was $1,922 million, compared to $1,912 million as reported as at the end of April 2017.

Available cash and bank facilities amounted to $213 million as at 30 June 2017.

Chief executive Amjad Bseisu said: "EnQuest was pleased to bring the Kraken field onstream in Q2 2017 at a substantially reduced capex spend, having delivered excellent drilling and subsea programmes.

"The FPSO however is a complex vessel, designed and built to manage the heavy oil from the Kraken development, and it is taking longer than expected to commission during this initial period.

"Nonetheless, we have been very pleased with reservoir performance and the flow rates achieved on individual wells and, we expect the field to increase production in Q4 and to achieve plateau production of approximately 50,000 Bopd gross in H1 2018.

"While we have seen natural declines in EnQuest's existing production base in H1 2017, Kraken is on course to drive a material increase in EnQuest's production in 2018 and beyond."

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