London-based EnQuest PLC mentioned it has received the bidding for 2 manufacturing sharing contracts (PSCs) for the Gaea and Gaea II blocks in Papua Barat, Indonesia, together with its three way partnership companions, as introduced by the nation’s Ministry of Power and Minerals.
The blocks current unrisked useful resource potential of multi-trillion normal cubic ft for EnQuest, the corporate mentioned in a information launch.
EnQuest mentioned the award marks its entry into Indonesia, “a rustic that gives a broad vary of progress alternatives that span the complete upstream lifecycle”.
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The transfer additional expands EnQuest’s Southeast Asian footprint, including to its rising momentum within the area, after securing an extension to its gasoline manufacturing in Malaysia and signing of an acquisition of Harbour Power’s Vietnam enterprise, the corporate mentioned.
Topic to the execution of the PSC, EnQuest can be designated because the PSC operator with a 40 p.c working curiosity, working with its three way partnership companions, the Tangguh Joint Enterprise composed of BP Exploration Indonesia Restricted, MI Berau B.V., CNOOC Southeast Asia Restricted, ENEOS Xplora Inc., Indonesia Pure Fuel Assets Muturi, Inc., KG Wiriagar Petroleum Ltd and PT Agra Energi Indonesia.
2024 Manufacturing Report
In its most up-to-date earnings launch, Enquest reported 2024 manufacturing of 40,736 barrels of oil equal per day (boepd), in comparison with 43,812 boepd within the prior yr.
EnQuest Chief Govt Amjad Bseisu mentioned, “The Group delivered one other excellent yr of operational efficiency in 2024, with manufacturing effectivity at 90 p.c throughout the asset portfolio, representing a continuation of the excellence that defines our standing as a top-quartile operator and knowledgeable in late-life asset administration. After producing 40.7 Kboed in 2024, year-to-date manufacturing from our present portfolio, as of the tip of February 2025, was 43.0 Kboed [excluding Vietnam], monitoring forward of our steerage vary of 40–45 Kboed, which incorporates roughly 5 Kboed of professional forma volumes for Vietnam. Demonstrating our differentiated operational functionality throughout the transition lifecycle, now we have continued to consolidate our place as a number one exponent of decommissioning actions, having been accountable for greater than 35 p.c of the wells plugged and deserted within the North Sea over the previous three years”.
“In current months, the Group has executed successive materials progress transactions throughout South East Asia, offering geographic and commodity diversification inside the portfolio. Our entry into Vietnam, by means of the Block 12W acquisition, and our elevated presence in Malaysia, with the enhancement of our Seligi gasoline settlement and the DEWA gasoline improvement PSC award, are all underpinned by leveraging our differentiated working functionality to create asset worth. As EnQuest continues to pursue progress within the UK North Sea and additional potential new nation entries in South East Asia, these transactions underscore our dedication to progress, a disciplined strategy to [mergers and acquisitions], and a technique to speculate capital the place we determine essentially the most favorable returns,” Bseisu continued.
“Our basis for progress is strong and we’re well-positioned to transact, with our transaction prepared liquidity rising to [approximately] $550 million on the finish of February, following the newest redetermination of the Group’s reserve-based lending facility, which stays absolutely undrawn. Having persistently delivered towards manufacturing, operational and price targets, now we have generated materials free money flows throughout current years, even during times of diminished commodity costs. This dedication to supply, towards the backdrop of a difficult fiscal atmosphere within the UK, has seen us cut back EnQuest internet debt by greater than $1.6 billion since its peak,” he concluded.
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