EnQuest acquires stake in Golden Eagle at last

UK oil and gas company EnQuest has bought a 26.69 per cent non-operated equity interest in the Golden Eagle area in the UK North Sea. 

The Golden Eagle area consists of the producing Golden Eagle, Peregrine, and Solitaire fields located in the UK North Sea. Located about 111 kilometres northeast of Aberdeen, the Golden Eagle platform is operated by CNOOC International. It produced its first oil back in October 2014.

In February this year, EnQuest signed an agreement with Suncor Energy to buy its entire 26.69 per cent non-operated equity interest in the Golden Eagle area for an initial consideration of $325 million with additional contingent consideration of up to $50 million.

To enable refinancing of the company’s existing high yield bonds and the acquisition of the Golden Eagle area, EnQuest signed a senior secured borrowing base debt facility for $750 million in June 2021. The company confirmed on Friday that the acquisition of a 26.69 per cent non-operated equity interest in the Golden Eagle area development was completed.

Amjad Bseisu, CEO of EnQuest, commented on the acquisition: “We are delighted to have completed the acquisition of a material interest in the high-quality, low-cost Golden Eagle development. As a highly cash generative asset, delivering material incremental production, reserves and resources, Golden Eagle is a great addition to our portfolio, further strengthening the company.”

EnQuest claims that the Golden Eagle area contains significant remaining development potential, with anticipated field life extending into the early 2030s.

“We look forward to a productive partnership with the operator, CNOOC and our joint venture partners, NEO Energy and ONE DYAS,” added Bseisu.