EnQuest secures Brunei production sharing agreement

(Sharecast News) - EnQuest announced on Wednesday that it has secured a production sharing agreement for Block C offshore Brunei Darussalam, marking a new entry into the country and further expanding its Southeast Asian gas portfolio. The London-listed firm said the agreement, awarded by the Petroleum Authority of Brunei Darussalam, would initially see EnQuest EP BV operate the block, with plans to form a 50-50 joint venture with Brunei Energy Exploration (BEE), subject to contract.

Once established, the joint venture would assume operatorship and work to finalise a development plan for the Merpati Field, targeting a final investment decision within two years.

Capital investment was expected to begin in 2027, with first gas anticipated in 2029.

Block C contains the condensate-rich gas fields Merpati, Meragi and Juragan.

Development would begin with Merpati, with produced gas and liquids expected to supply both the domestic market and the Brunei LNG plant, which serves international markets.

"We are excited to embark on this new country entry with Brunei Darussalam," said CEO Amjad Bseisu.

"EnQuest is committed to fulfilling the responsibilities entrusted to us and we will leverage our experienced workforce and differentiated operating capability to deliver the project safely and efficiently."

Bseisu added that the project aligns with EnQuest's strategic focus on diversifying into gas and strengthening its footprint in southeast Asia, following recent transactions in Malaysia and the acquisition of Block 12W in Vietnam from Harbour Energy.

At 1248 BST, shares in EnQuest were up 0.57% at 12.77p.

Reporting by Josh White for Sharecast.com.