Gulf Oil and Gas accountACCOUNT

EnQuest Announces Agreement with BP on Thistle Decommissioning

Source: www.gulfoilandgas.com 1/31/2018, Location: Europe

Following the completion of the acquisition of an initial 25% interest in the Magnus oil field on 1 December 2017, EnQuest has announced it has agreed with BP to undertake the management of the physical decommissioning activities for Thistle and Deveron.

Under the terms of this agreement with BP:

EnQuest will receive $30 million in cash in exchange for undertaking the management of the physical decommissioning and making payments by reference to 3.7% of the gross decommissioning costs of the Thistle and Deveron fields when spend commences, subject to a cap of £57 million.

EnQuest’s current estimate of its exposure to decommissioning costs is lower than the $30 million cash being received; and EnQuest will also have an option, exercisable over a 12 month period, to receive a further $20 million in cash in exchange for making additional payments by reference to 2.4% of the gross decommissioning costs of these fields, subject to a cap of £42 million.

The transaction aligns the interests of the parties involved in the production and decommissioning phases, reflecting the industrial logic for the operator to undertake the decommissioning of these assets.

Financials and Investment News in United Kingdom >>

Indonesia >>  1/13/2019 - Indonesian oil and gas group Medco Energi Internasional said it could offer 340 million pounds ($436 million) in cash for London-listed Ophir , which ...
United States >>  1/11/2019 - Tidewater Inc. (TDW) announced that due to the closing of executive departments and agencies of the U.S. Federal government, including the Securities ...

Egypt >>  1/7/2019 - Egypt will implement an automatic price indexation mechanism on 95 octane gasoline starting in April which will limit price changes to 10 percent, Pet...
Libya >>  12/28/2018 - National Oil Corporation (NOC) declares that November income from sales of crude oil, derived products, and taxes and royalties received from concessi...

Oman >>  12/23/2018 - The Arab Petroleum Investments Corporation (Apicorp), a multilateral development bank, has announced a $100 million investment as part of a consortium...
Canada >>  12/20/2018 - Husky Energy plans to spend approximately $3.4 billion on its capital expenditure program in 2019 as it continues to invest in a deep portfolio of hig...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


United Kingdom Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 |

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.