EnQuest’s US$2.6 billion Kraken heavy oil field development is on track for first oil before the end of June, according to the North Sea independent.

The Kraken development, about 125km east of the Shetland Islands, off Scotland, will comprise 25 wells (14 for production and 11 for injection) via the Armada Kraken floating production, storage and offloading (FPSO) vessel.

First oil at Kraken will put EnQuest on track for full year 2017 average production at between 45,000-51,000 boe/d, which reflects the Kraken contribution in H2 2017.

Production averaged 37,856 boe/d for Q1, down on the 42,752 boe/d in the same period last year, reflecting natural declines in the existing producing assets.

A deal to acquire 25% of BP’s Magnus asset, which will include taking over operatorship – making it EnQuest’s eighth hub – and a stake in Sullom Voe Terminal, is due to complete at the end of 2017.

EnQuest CEO Amjad Bseisu said: “Our strategic priorities continue to be increasing production by delivering on operational and development execution, whilst also continuing to reduce the operating cost base. First production from the Kraken development will give EnQuest its seventh operated hub and will mark a turning point in EnQuest’s progress from a period of heavy investment to one focused on cash generation and deleveraging the balance sheet.”

The Armada Kraken FPSO is vessel operator Bumi Armada’s first in the North Sea. It was constructed at Keppel Offshore & Marine’s yard in Singapore.

The Kraken field is spread over 42km at a depth of 1300m below sea level, and is expected to hold 147 MMbbl of heavy crude oil, at about 14 API in the 2P probable reserves category.

Source: www.oedigital.com