Thursday 3 February 2022

EnQuest provides an update on its operational performance for the year ended 31 December 2021

Full year 2021 operations update and 2022 guidance

Debt reduction continues with strong cash flow and improved macro conditions

c.46% reduction in UK emissions, ahead of North Sea targets

EnQuest Chief Executive, Amjad Bseisu, commented:

"EnQuest delivered free cash flow of around $395 million in 2021 with a realised price of c.$69/bbl, resulting in a stronger balance sheet with net debt reduced to $1,222 million.

“High uptime at Kraken, the contribution from Golden Eagle and the accelerated recovery of wells at PM8/Seligi was offset by underperformance at Magnus. Magnus compression and water injection plants are now online and performing on target. Other assets, including Kraken and Golden Eagle are performing well and Malaysia is off to a strong start with the PM8/Seligi riser replacement now in place ahead of schedule, with all wells online. With an active programme of nine wells and seven workovers in 2022, our largest sanctioned program since 2014 and our first new wells in over two years, I am confident we will deliver a good performance this year. Our production to the end of January 2022 was 50,810 Boepd.

“Our decommissioning business performed better than expected, while our emissions were 45.7% below the North Sea Transition Deal 2018 baseline, and close to the 2030 target of 50%. I am very pleased we are industry leading in emission reductions and am excited about our new energy initiatives around Sullom Voe.

“The supportive macro environment and higher oil prices allow us to look forward to organic growth to offset natural declines. We remain focused on continuing to reduce our net debt while selectively investing in our low-cost, quick payback well portfolio. At the same time, we will continue to be disciplined with respect to M&A opportunities.

“EnQuest’s business is strongly positioned to play an important role in the energy transition. We will do so by responsibly optimising production, leveraging existing infrastructure, delivering strong decommissioning performance and exploring new energy and further decarbonisation opportunities.”

Full story here.