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: April 28, 2015
UAE. GCC wages are set to rise at an average of 5% in 2015, rebounding from a brief dip to 4.8% last year, according to Towers Watson; Growing inflation translates into pressure for all.
date:Posted: April 28, 2015
UAE. As banks address new capital regulatory requirements and slow balance sheet growth, a new global study on alternative channels for capital from shadow banking provides a unique investor perspective on what it will take for these financing vehicles to take hold and support economic growth.
date:Posted: April 28, 2015
UAE. The report presents the demand-supply dynamics of the GCC food industry across its countries and major food categories; Food demand in the GCC is driven by several factors including a growing population base, increasing affluence and rising tourist inflow.
UAE. As banks address new capital regulatory requirements and slow balance sheet growth, a new global study on alternative channels for capital from shadow banking provides a unique investor perspective on what it will take for these financing vehicles to take hold and support economic growth.
dhgate