Oil and gas firm EnQuest has completed a £230 million deal with BP which sees it take full ownership of the famous Magnus oil field in the North Sea.

The deal also includes a 9% stake in the Sullom Voe oil terminal and supply facility in the Shetland Islands.

The Magnus deal is expected to add some 60 million barrels to EnQuest’s reserves.

Chief executive Amjad Bseisu, said: “These assets are a strong strategic fit for EnQuest to which we can apply our life extension expertise and deliver value for all our stakeholders. “The addition of Magnus is expected to add material production and cash flow from the addition of significant low-cost 2P reserves.

“These cash flows will help facilitate the planned reductions in the group’s debt.”

Bseisu said Sullom Voe is an “essential element of our North Sea portfolio” through which it flows over a third of its production.

“We are on track to deliver around £50 million of cost savings in our first year as operator, and plan further savings in 2019 while exploring opportunities for new business to maximise the terminal’s value,” he added.

EnQuest acquired a 25% stake in Magnus in 2017.

Source: www.insider.co.uk