Enquest welcomes Budget tax move as it targets North Sea cost cuts
NORTH Sea focused-EnQuest has said tax changes in The Budget will encourage deals in the area as the company revealed losses doubled to $1.3 billion last year following the crude price plunge.
NORTH Sea focused-EnQuest has said tax changes in The Budget will encourage deals in the area as the company revealed losses doubled to $1.3 billion last year following the crude price plunge.
The London-based firm slashed $1.2bn off the valuation of its portfolio of assets to reflect the oil price fall.
This has prompted EnQuest to cut spending in the North Sea, where it is targeting economies in areas such as staffing.
Chief executive Amjad Bseisu said EnQuest’s priority is to continue delivering a business which is robust in a low oil price environment.
The company said it is seeking costs reductions across the board, highlighting areas such as production operations and manpower.
It employs 300 in Aberdeen, after reducing job numbers there by around 15 per cent last year.
“Contracts are being cancelled, projects are being reduced in scope and deferrals of cash payment are being agreed,” said EnQuest.
However, the company said it has been making strong progress with the giant Kraken heavy oil field off Shetland, which it is developing with Cairn Energy.
EnQuest expects to invest a further $600m on Kraken this year ahead of the expected start of production in 2017.Click for Full article on the Guardian website
