EnQuest plc has lowered its forecast due to “challenging” production at Magnus and Kraken fields in the North Sea as well as in Malaysia.
CHALLENGING
The group expects production for the year to be around 45,000 boepd, including the contribution from Golden Eagle.
The figure is lower than the 46,000 and 52,000 boepd announced in September.
Average net group production in the ten months to the end October 2021 was 44,306 boepd.
Chief executive Amjad Bseisu said that production had been challenging and was further affected by a supplier driven delay in the pipeline replacement in Malaysia.
ISSUES
EnQuest reported that production at Magnus had been affected by recent compressor system outages.
Production remains below expectations, averaging 12,640 boepd for the ten months to end October 2021.
For the ten months to October, Kraken average gross production was 31,977 Boepd, in line with the company’s expectations.
An oil heater failure resulted in a short facility shutdown and the group optimised production through single train operations until the heater repairs were completed.
EnQuest added that the pipeline replacement at PM8/Seligi in Malaysia had been delayed due to support vessel availability.
OTHER ASSETS
Performance from Golden Eagle was reported at 10,556 boepd on a pro forma basis for the ten months to end October.
Production averaged 3,516 boepd, in line with expectations at EnQuest’s other projects.
At the Greater Kittiwake Area, the umbilical replacement and reinstatement of power to the Mallard and Gadwall wells was concluded, with performance at Scolty/Crathes remaining as expected.
Alba continues to perform broadly in line with Group expectations.
REVENUE
Revenue in the ten months to end of October 2021 was $950 million, including $110 million related to Magnus crossover gas.