EnQuest to Sell Stake in Kraken Development in North Sea
EnQuest has signed a memorandum of understanding (MoU) to sell its interest in the Kraken development in the UK North Sea to Israel-based Delek Group.
Under the MoU, Delek will bear its share in the project capex from 1 January this year and will advance $20m to EnQuest for five years at an annual interest of 3% upon completion.
The interest shall be returned to Delek in the event that its costs are not covered by revenues within five years from the date of completion.
EnQuest and Delek are holding talks regarding mechanisms for an additional contingent consideration that are planned to be set-out in binding transaction documents.
