United Kingdom-based petroleum exploration and production company Enquest said it had completed the acquisition of the remaining 75% stake in Magnus, an additional 9.0% stake in the Sullom Voe Oil terminal and supply facility and additional interests in associated infrastructure from BP.
The Magnus transaction, as previously announced, is expected to add approximately 60 MMboe of 2P reserves (equating to approximately 30 percent of the Group’s reserve base) as at 1 January 2018 and approximately 10 MMboe of 2C resources (equating to approximately 6 per cent of the Group’s resource base) as at 1 January 2018.
The oil and gas production and development company listed on the London and Stockholm stock exchanges said in a press release that it will add $500 million of net present value to the Group at $70/bbl long-term oil price, as outlined in the Competent Person’s Report on Magnus included in the Prospectus dated 7 September 2018.
Following the transaction, EnQuest now had a 100% equity stake in Magnus, 15.1% in Sullom Voe Oil terminal and supply facility, 18.0% in the Ninian Pipeline System and 41.9% in the Northern Leg Gas Pipeline, the company added.
EnQuest CEO, Amjad Bseisu, said: “We have completed the acquisition of Magnus, the Sullom Voe Terminal and associated infrastructure from BP. 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," he said.
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