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: November 20, 2014
INTERNATIONAL. The trajectory of Japan's economy has much to teach us about the wisdom of Keynesian policies. Those who are not blinded by left-wing dogma should take a good look at where the road of permanent stimulus ultimately leads.
date:Posted: November 20, 2014
INTERNATIONAL. The path to the acceptance of the participatory approach to development was forged, through trial and error, over several decades until the 1990s, when its global recognition by development practitioners became well-established.
date:Posted: November 20, 2014
INTERNATIONAL. There is a high degree of uncertainty over how the Iranian negotiations and the OPEC meeting will play out, but the end of November will be hugely important for energy markets.
dhgate