You are hereHome SectorsKuwait
Kuwait to invest US$500 million in EnQuest's UK North Sea oilfields
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Wed May 30, 2012 11:33 am

KUWAIT. Kuwait will invest US$500 million in EnQuest's Alma and Galia oilfields in the U.K. North Sea in exchange for a 35% stake in the prospects.

As part of the deal Kuwait Foreign Petroleum Exploration Co., or Kufpec, will contribute as much as US$182 million to past and future costs, EnQuest said in a statement in London today. EnQuest said the total cost of developing Alma and Galia will be US$1 billion.

“This enhances the economics for us,” EnQuest Chief Executive Officer Amjad Bseisu said in a telephone interview. “While selling the stake will reduce our production targets somewhat, we’re hoping that the additional capital can be used for other development opportunities or to acquire more producing assets.”

The deal is the second this month for EnQuest after increasing interests in the Kildrummy and Cairngorm discoveries as the company tries to bolster output. Danny Alexander, a U.K. government minister, said today’s deal showed that the North Sea is still attracting investment after the government introduced a surprise tax increase on crude oil profits in 2011.

In March, Chancellor of the Exchequer George Osborne guaranteed tax relief for dismantling platforms and promised to increase tax allowances on marginal fields.

“This is good news for northeast Scotland and the whole of the U.K.,” Chief Secretary to the Treasury Alexander said. “The government will continue working with the industry in the North Sea to get the most of what is a huge national asset.”

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: February 6, 2016
INTERNATIONAL. PMI: The high cost of low performance shows need for stronger worldwide implementation of project, program and portfolio management.
date:Posted: February 6, 2016
UAE. S&P expects Abu Dhabi's government balance will worsen further based on the ratings agency's updated oil price assumptions; However, the emirate's large net asset position will continue to give it a considerable buffer to support the economy; Continued structural and institutional weaknesses anticipated.
date:Posted: February 5, 2016
INTERNATIONAL. "Saudi regional leadership amounts to exploitation of a window of opportunity rather than reliance on the assets and power needed to sustain it. That window of opportunity exists as long as the obvious regional powers - Iran, Turkey and Egypt - are in various degrees of disrepair."
UAE. S&P expects Abu Dhabi's government balance will worsen further based on the ratings agency's updated oil price assumptions; However, the emirate's large net asset position will continue to give it a considerable buffer to support the economy; Continued structural and institutional weaknesses anticipated.
dhgate
Monogram Ring