Kraken - Half Year Results
Thursday 8 September 2016
Overall the project remains on schedule and below budget, with first oil anticipated in H1 2017.
Floating production, storage and offloading vessel (‘FPSO’): The FPSO is nearing mechanical completion with focus now on pre-commissioning and commissioning activities. The three boilers have all been fired for the first time and are undergoing performance tests. Three of four engines are mechanically complete. The turret area is mechanically complete. The accommodation module is fully operational and the operations crew are living onboard. Commissioning activities are ramping up at the quayside before sailing the vessel to deepwater anchorage in order to commission systems such as water injection pumps, HSP power fluid pumps, sulphate reduction package, fire water and deluge and lifeboats.
Subsea: The subsea installation programme is now complete with all three Drill centres (‘DC1’, ‘DC2’ and DC3’) fully connected to the STP buoy for hook up to the FPSO. There is one short programme planned to install the last mooring pile and wire/chain.
Drilling: The drilling programme continues to make excellent progress. A total of four producer and four injector wells have now been safely drilled and completed, with results meeting or exceeding pre-drill predictions.
EnQuest has today announced a further c.$150 million reduction in the gross full cycle Kraken project costs to c.$2.6 billion. This reduction was primarily possible because of the progress on drilling and the execution of the subsea programme; these capex reductions will reduce cash outflow in 2017 and beyond.