Enquest - Operational Update

Thursday 25 May 2017

Performance update by individual production and development asset

North Sea

Kraken development

All drilling is now complete on DC1 and DC2 and the rig has moved to DC3, where further excellent progress has been made on the drilling programme. Drilling performance to date has significantly de-risked delivery of the project to and beyond first oil.

DC1 and DC2 subsea commissioning is complete and ready for operation. The turret pipework and emergency shut down valves have been installed. Nitrogen/helium leak testing has been successfully conducted and the final rotation testing is complete. The boiler systems are running well and the water injection and HSP power pumps have been commissioned. Testing and other topsides and subsea infrastructure final commissioning work is ongoing. Handover of FPSO systems from commissioning to operations continues. Longstanding discussions with Bumi continue in relation to the remedies of Kraken partners for contractual infringements by Bumi.

At start up, 13 wells will be available comprising 7 producers and 6 injectors. As with all developments of this scale, wells will be brought onstream in a phased manner in line with good reservoir management practices aiming to maximise long term productivity and value.

The project continues to be under budget and on schedule.

Northern North Sea production

Thistle/Deveron

A programme improving the reliability of water injection is being implemented and is already having a positive impact.

The Don fields

Well performance has been particularly good at Don Southwest, with high levels of production efficiency across the Don fields.

Heather/Broom

The 2017 Heather/Broom production is progressing broadly according to plan.

Central North Sea production

Greater Kittiwake Area ('GKA') & Scolty/Crathes

The work programme in GKA for 2017 is focused on optimising production from the existing well stock including the Scolty and Crathes fields. Good production has been delivered from the GKA fields, with very high levels of plant uptime. Initial rates on Scolty and Crathes for H1 have been constrained due to operational issues. Work is currently ongoing to restore the rates.

Alma/Galia

As expected at the time of EnQuest's results announcement in March, 2017 production from Alma/Galia has been lower than 2016, given two wells are shut in, production outages in Q1 due to storm damage and natural decline. Discussions are ongoing with the ESP supplier on rectification plans to address pump reliability issues.

Alba (non-operated)

Production from Alba benefitted from the A49 well coming back online in March.

Malaysian production

PM8/Seligi

EnQuest is continuing to enhance production by investing in low cost well interventions and facility projects to improve production efficiency, including gas compression and power generation control system upgrades. In addition, robust maintenance and integrity inspection campaigns of platform structures, topsides, and subsea pipelines are continuing to ensure safe operations.

Longer term, EnQuest will extend field life through further investment in idle well restoration, facility improvements and upgrades and technical studies supporting development drilling, secondary recovery and capacity enhancement projects to increase ultimate recovery.

Tanjong Baram

Focus remains on steady, safe and low cost operations in 2017. Tanjong Baram field has produced since December 2016 without an unplanned shutdown.