UK-based independent EnQuest says it has made a discovery in the North Sea and agreed a field development project with Malaysia’s Petronas.
Drilling on the North Sea Avalon prospect confirmed a discovery. EnQuest said preliminary analysis indicated an 85ft vertical column of reasonable quality mobile oil in good quality high permeability sands. Further evaluation is ongoing.
In Malaysia, EnQuest has secured a small field development with Malaysia’s national oil company Petroliam Nasional Berhad (Petronas). This is for the development and production of petroleum from the Tanjong Baram field, offshore Sarawak, Malaysia. Net 2P reserves are about 3.5 MMboe, with start-up expected late 2015-early 2016.
EnQuest expects the project to recover approximately 5 MMboe gross with peak gross production of 3400 boe/d. EnQuest will be the operator of Tanjong Baram and hold a 70% interest. EnQuest will incur upfront costs for development and operations and will be reimbursed from field production.
Tanjong Baram will be developed as a near field tieback to the West Lutong A complex. The development plan includes up to two wells, depending on results of the first development well. Capacity for an additional two wells has been included in the facilities design.
In the North Sea, first oil from EnQuest’s Alma/Galia development is expected in H2. Finishing and commissioning work continues on the EnQuest Producer floating production, storage and offloading (FPSO) vessel (pictured) at OGN’s Hadrian Yard in northeast England. The subsea infrastructure is in place, with risers and mooring systems pre-installed, awaiting arrival of the FPSO. The 2014 wells completion program also remains on track.
The North Sea Kraken development FPSO arrived at the shipyard in Singapore on schedule, and work on the conversion scope has started. Preparatory work continues ahead of planned appraisal drilling on the field’s “Western Feature”, and is due to started in Q3 2014.
Amjad Bseisu, Chief Executive, said: “We have taken another positive step forward in Malaysia with a small development in Tanjong Baram, our first operating partnership with Petronas. We have also had a discovery in Avalon and are now evaluating the well results towards a potential development. Avalon is in close proximity to our Scolty/Crathes discoveries and further enhances the potential of the Greater Kittiwake Area."
EnQuest said its Q1 production rose 25% to 25,597 boe/d compared to the same period last year. Full year production is estimated to be 25,000-30,000 boe/d.
Bseisu added: "Production of 25,597 boe/d to the end of April marks a good start to the year, reflecting strong reservoir and production efficiency performances from all of EnQuest's hubs, and from Thistle in particular.”
Producing fields (all North Sea)
Thistle/Deveron continued to benefit from the new production well which came on stream, in H2 2013, and from investment in a significantly improved power supply. In 2014, further capital investment is being made in the ongoing Thistle field life extension project.
Following the recent award of the Don North East license, it is intended to submit a field development plan application around the end of this year; this will include at least one production well in Area 24 (to be renamed Ythan) potentially to come on stream around mid-2015. Production optimizing projects are continuing, production efficiency remains very strong and a new production well is now being drilled in Don Southwest, in Area 22.
Following commencement of rig operations in Q1 2014, the workover of the H56 well was successfully completed in Q2 and the rig started on a sidetrack of H44 as a new injection well.
Following the completion of the acquisition at the start of March, Kittiwake is being fully integrated into EnQuest's operations; Goosander and Grouse have been delivering steady production and an early workover of Mallard is planned for around the middle of the year. The nearby Avalon discovery is EnQuest's latest move in creating and enhancing the new Kittiwake hub and further exploration opportunities in the area are also being actively assessed.
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