In a low oil price environment in which development of new production is constrained, EnQuest’s low cost approach is a competitive advantage. EnQuest is the right company to turn around the performance of maturing assets, assets which had high operating costs and low levels of production efficiency before EnQuest took over operatorship. Here are four ‘before’ and ‘after’ examples, showing how EnQuest has increased production in each case.

In 2010, EnQuest’s work programme for Thistle included; modern seismic, the successful reactivation of the old drill rig, the drilling of new wells, a major power supply upgrade, the introduction of new and simplified process controls and safety systems and integrity work on the platform topsides. These measures returned Thistle to production levels it had not achieved since the 1990s. In 2015, six years after EnQuest started this programme, Thistle was still delivering very high levels of production efficiency, in the mid-80s%, on EnQuest’s analysis.
After Thistle, a similar approach was taken at Heather/Broom. Rig reactivation, drilling workovers and new wells, a new injection flowline and significantly increased water injection, have all materially increased production levels. Heather/Broom also achieved production efficiency in the mid-80s% in 2015.

In 2014, EnQuest acquired interests in both the Greater Kittiwake Area (‘GKA’) in the North Sea and the PM8/Seligi Production Sharing Contract in Malaysia, both of which swiftly recouped their original investment and which achieved strong production growth in 2014 and 2015.

At the Greater Kittiwake Area hub, EnQuest’s first priorities were to rejuvenate the well stock, to raise production efficiency and to significantly reduce unit operating costs, from over $100 per barrel at the time of the acquisition. The Mallard well was worked over, the Gadwall well was side-tracked and dissolver treatments were implemented, all of which has driven production from 2,000 Boepd levels around the time EnQuest took over operatorship, to between 14,000 Boepd and 16,000 Boepd for much of the last quarter of 2015. Production efficiency was taken from very low levels to around 80% in 2015, with unit operating costs substantially down, to below $30/bbl.

At PM8/Seligi in Malaysia, EnQuest assumed operatorship in October 2014 and through an early programme focusing on facility integrity, gas compressor reliability and idle well restoration, quickly increased production from 12,400 Boepd to 15,100 Boepd. This has been achieved before any new drilling has taken place. Production efficiency has also been enhanced, from 82%, to over 90% in 2015.

As per EnQuest’s Annual Report contents, dates 16 March 2016