EnQuest expands role in GKA decomissioning

(Sharecast News) - EnQuest announced an expanded role in the decommissioning of the Greater Kittiwake Area (GKA) fields in the North Sea on Wednesday. The London-listed firm said EnQuest Heather, in partnership with Shell UK and Dana Petroleum E&P, was responsible for decommissioning the GKA fields.

Following a joint venture decision, EnQuest was appointed to oversee the entire decommissioning scope for the GKA, with Shell transferring its previous decommissioning management responsibilities to EnQuest.

The GKA infrastructure was expected to remain in production into the late 2020s, with EnQuest already proactively planning a managed decommissioning programme to follow the end of production.

EnQuest said its strategic goal of becoming the preferred decommissioning operator in the North Sea was supported by its successful execution of complex projects, including the removal of the EnQuest Producer and Northern Producer facilities.

The company said it was also engaged in extensive well plug and abandonment (P&A) activities at the Thistle and Heather fields, achieving cost savings of 40% below industry benchmarks.

EnQuest said it was on track to complete the plugging and abandonment of 77 wells, representing 60% of its operated suspended and shut-in wells, within five years of ceasing production.

"This is a great vote of confidence in EnQuest by our GKA partners Shell and Dana," said the company's decommissioning director John Allan.

"It reflects our strong track record of safe, efficient and successful execution of complex decommissioning scopes which is an important part of our company growth strategy."

At 1032 BST, shares in EnQuest were down 1.55% at 12.7p.

Reporting by Josh White for Sharecast.com.