Landmark Kraken field onstream
Enquest pumps first oil from landmark field
Oil explorer EnQuest said the first production from one of the largest developments in the North Sea in a decade was delivered on Friday and said it was on course to bring more capacity online next year.
The Kraken project is described as “transformational” for the company and a boost to the region as it continues a slow recovery from the oil price slump.
Thirteen wells have been drilled and completed to date at Kraken, comprising seven producers and six injectors. They are being brought online in a phased manner, to maximise long term productivity and value.
CEO, Amjad Bseisu (pictured), said: “EnQuest is delighted to confirm that first oil has been achieved on the Kraken development, delivered on schedule and under budget. Drill centres 1 and 2 are fully complete and work continues on drill centre 3; as a result, further production capacity will come online into 2018 as these further wells are put onstream.”
He added: “Kraken is a transformational project, made possible by EnQuest’s differential capabilities; the right mix of integrated technical capabilities, high levels of efficiency and cost discipline.
“With production from Kraken, EnQuest is moving from a period of heavy capital investment, to a focus on cash generation and deleveraging the balance sheet.”
Head of major projects, Richard Hall said: “The achievement of producing first oil from Kraken on schedule and considerably under budget is a great testament to the capabilities of EnQuest.
“I am extremely proud of the EnQuest Kraken team for their dedication, vision and sheer hard work and thank them for this exceptional performance. Our approach of rigorous planning, simplification of specifications and clarity in execution methodology has enabled us successfully to deliver this highly complex project.”
UK Business and Energy Secretary Greg Clark said: “This is a landmark project for EnQuest and the UK oil and gas sector as one of the largest new oil fields to come on-stream in the North Sea in a decade.
“This has been made possible through significant UK government support to encourage investments of this type in the North Sea, supporting thousands of highly-skilled jobs.
“We’ll continue to build on this support for the oil and gas sector as it looks to seize the significant opportunities that lie ahead.”
UK Oil & Gas Authority Chief Executive, Dr Andy Samuel said: “As one of the most significant oil field projects in the UK Continental Shelf, successful production from Kraken is positive news for the whole basin.
“It has the potential to open up additional heavy oil opportunities in the Northern North Sea, with other developments in the pipeline. It’s particularly pleasing to see a project delivered under budget, having clearly benefitted from a strong partnership between operator and key service providers.”