TURNING MATURING FIELD DECLINE INTO PRODUCTION GROWTH AND ECONOMIC FIELD LIFE EXTENSION.

EnQuest field optimisation: In the current 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 2016, seven years after EnQuest started this programme, Thistle was still delivering very high levels of production efficiency. 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 – which have all materially increased production levels. Heather/Broom also achieved high levels of production efficiency in 2016.

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. At the Greater Kittiwake Area hub, EnQuest’s first priorities were to rejuvenate the well stock, to raise production efficiency and to reduce unit operating costs significantly, from over $100/bbl at the time of the acquisition. The Mallard well was worked over, the Gadwall well was side-tracked and dissolver treatments were implemented at Goosander, all of which drove gross production from 2,000 Boepd levels around the time EnQuest took over operatorship, to between 14,000 and 16,000 Boepd by the last quarter of 2015. Production efficiency was taken from very low levels to the very high levels which are regularly achieved on EnQuest assets, with unit operating costs substantially down, to below $30/bbl. In November 2016, EnQuest delivered first oil from the Scolty/Crathes development, tied back to GKA, generating combined gross production of over 20,000 Boepd on individual days in December 2016. The production from the Scolty/Crathes fields themselves, bringing this development onstream also extends the life of the GKA hub to at least 2025.

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 gross 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 here. In 2016, production was again strong, a substantial achievement for a maturing field with wells which have high natural decline rates and in a year with no drilling, a further testament to the success of the programme of well intervention and topsides work, resulting in high levels of production efficiency.

 
 
 
 
 
 
 

As per EnQuest’s Annual Report contents, dates 20 March 2017