UK oil and gasoline firm EnQuest expects its manufacturing for the 12 months to be under its steerage vary attributable to an incident and a ensuing unplanned outage in Malaysia.
According to an replace on Tuesday, EnQuest’s manufacturing averaged 60,777 Boepd within the ten months to finish October 2020.
EnQuest added that its full-year manufacturing is anticipated to be barely under the mid-point of the 57,000 to 63,000 Boepd steerage vary.
Group manufacturing is decrease within the second half in comparison with the primary half of the 12 months, reflecting the upkeep shutdown schedule in addition to an unplanned outage at PM8/Seligi.
EnQuest Chief Executive, Amjad Bseisu, mentioned: “The Group has delivered manufacturing consistent with steerage 12 months to this point, with Kraken persevering with to carry out nicely. We count on manufacturing to be barely under the mid-point of the 57,000 to 63,000 Boepd steerage vary for the complete 12 months 2020, reflecting the influence of the unplanned outage at PM8/Seligi.
“We have continued to generate constructive free money flows within the interval and have once more made a voluntary early fee of $40 million towards the April 2021 scheduled amortisation of our senior credit score facility. We stay targeted on value management and capital self-discipline to keep up free money circulation breakeven at round $33/Boe in 2020”.
EnQuest: Malaysian operations
Average manufacturing in Malaysia within the ten months to finish October 2020 was 7,115 Boepd, 15 per cent decrease than the identical interval in 2019.
This lower was primarily pushed by a indifferent riser on the Seligi Alpha platform which gives gasoline elevate and injection to the Seligi Bravo platform, EnQuest defined.
This resulted in a launch of gasoline and a subsequent hearth which initiated an computerized emergency shutdown of the PM8/Seligi subject. The firm’s security programs and emergency response procedures had been efficiently applied, with the hearth extinguished rapidly and all personnel onboard mustered safely.
Following an preliminary investigation and security evaluation, partial operations had been in a position to be restarted inside two days, with wells flowing beneath pure pressures.
Production is at present at c.40 per cent of regular ranges with a single compressor practice operational. Remediation actions to permit manufacturing to be returned to regular ranges are at present being assessed, though manufacturing is anticipated to stay constrained by way of the primary half of subsequent 12 months.
Performance at Kraken and Scolty/Crathes is anticipated to partially offset decrease manufacturing at PM8/Seligi, Magnus and the Dons.
EnQuest continues to count on to realize its 2020 targets with free money circulation breakeven for the complete 12 months of c.$33/Boe.
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