EnQuest farms down North Sea field to Hibiscus

UK oil and gas company EnQuest is farming down the majority of its interest in the Eagle discovery in the UK North Sea to Anasuria Hibiscus for a nominal consideration of $1.

EnQuest said on Thursday it has signed an agreement with Anasuria Hibiscus UK Limited, a subsidiary of Malaysia’s Hibiscus Petroleum, to farm-down an 85 per cent working interest in, and transfer operatorship of, the Eagle discovery.

EnQuest will retain a 15 per cent non-operating working interest.

Consideration is in the form of a nominal $1 payment due to EnQuest on completion plus a full carry of all costs from completion of the transaction through to first oil in relation to the 15 per cent interest.

According to Hibiscus Petroleum, such costs of the carry is presently estimated to be approximately $7.5 million.

Completion is expected during the second quarter of 2021, subject to customary regulatory and third-party approvals.

EnQuest currently has no gross assets, reserves or profits attributable to the Eagle discovery.

The Eagle field is located in Production Licence P238 Block 21/19a.

Hibiscus Petroleum said in a separate statement on Thursday that since the Eagle field is located approximately 6.4 km to 15 km from various Anasuria facilities, it facilitates a potential subsea tie back to the Anasuria FPSO which could extend the latter’s economic life.

In addition, the terms of the deal include the transfer of operatorship of the licence to Anasuria Hibiscus, according to the provisions to be contained in a Joint Operating Agreement between Anasuria and EnQuest, which will be signed at SPA completion.