EnQuest Reportedly Seeking Buyers For Stake In Kraken Field

North Sea-focused oil and gas producer EnQuest Plc has hired investment bank Jefferies to advise on a sale of a 20% stake in its recently started Kraken Field, according to a document seen by Reuters.

The sale could fetch as much as $400 million for EnQuest, based on recent analyst valuations of the field. EnQuest holds a 70.5% stake in Kraken where production is expected to ramp up to 50,000 bbl/d by mid-year following its startup last June.

EnQuest declined to comment.

EnQuest has previously sought buyers for a stake in its flagship $2.5 billion development to help with its costs, but talks with Israeli conglomerate Delek Group failed in 2016. The heavily indebted company, headed by CEO Amjad Bseisu, is hoping to attract more interest now that the field is up and running.

The recent sharp rise in oil prices to about $70/bbl, levels not seen since 2014, is anticipated to spur further interest, banking sources said.

EnQuest’s lenders in November agreed to ease the terms of its loans as it struggled with a debt of about $2 billion compared with a market value of about $680 million. In the sale document, EnQuest, which specializes in extending the life of aging fields, said it intended to open a data room in January and set a deadline for bids in March or April.

Analysts at Barclays in December valued EnQuest’s 70.5% stake at about $1.4 billion while Jefferies analysts valued it at about $1.3 billion. Cairn Energy owns the remaining 29.5% in the Kraken Field.

API President, CEO Jack Gerard To Step Down In August

The American Petroleum Institute (API) said Jan. 17 that President and CEO Jack Gerard will not make another long-term commitment to API and will step down when his current contract ends in August 2018.

Since Gerard joined the oil and natural gas trade association in 2008, API membership grew by almost 50% and added members from every sector of the industry, according to API’s press release. The organization also tripled its growth in global markets where it promotes safety through standard setting and best practices, including expansions to Singapore, Dubai and Rio de Janeiro.

Additionally, Gerard helped build a grassroots network comprised of 45 million voters with representation in congressional districts who communicate with their elected officials on energy issues, the release said.

Gerard will assist in the search for a new CEO and continue to direct API’s work until a replacement is found.

Petrobras, Total Close Deal Involving Presalt Fields

Petrobras and Total said they have completed the previously announced transaction involving Lapa and Lara area fields, finalizing a milestone in their strategic alliance signed in March 2017.

The transactions, which total $1.95 billion, involve Petrobras transferring to Total 35% of the rights and operatorship of the Lapa Field in Block BM-S-9A in the Santos Basin presalt. Partners in the field are Shell (30%), Repsol-Sinopec (25%) and Petrobras (10%).

Petrobras also transferred to Total 22.5% of the rights of the Lara area, which comprises the Sururu, Berbigão and Oeste de Atapu fields in Block BM-S-11A in the Santos Basin presalt, operated by Petrobras (42.5%) with Shell (25%) and Petrogal (10%).

Production in Lara is expected to start in 2018 through the 150,000 bbl/d-capacity P-68 FPSO unit in the Berbigão-Sururu fields, which will be followed by a second FPSO unit in 2019 in the Atapu Field, Total said in the release.

Production at the Lapa Field started in December 2016 via the 100,000 bbl/d-capacity Cidade de Caraguatatuba FPSO vessel.

Noble Corp. Names Julie Robertson As New CEO

Noble Corp. Plc said Jan. 11 David W. Williams, the company’s chairman, president and CEO, will retire from the London-based offshore drilling company.

Julie J. Robertson, the company’s executive vice president, has been elected by the Noble board of directors to succeed Williams, according to the company press release. As part of the leadership succession plan, Williams will remain with Noble through February, serving in an advisory capacity.

In her current role that she has held since 2006, Robertson has had direct oversight for human resources, procurement and supply chain, learning and development, HSE functions and information technology. She has been with Noble since 1979, according to the company website.

UTEC Appoints Business Unit Director, Lands Survey Contracts

UTEC has appointed Bill Hickie as business unit director of its Middle East and Caspian operations.

Previously, with UTEC in the role of global director of business development for the Eastern Hemisphere, Hickie has developed strong relationships in the region and provides continuity for UTEC’s clients as he moves into this new role, the company said in a news release. Hickie has over 12 years’ experience in the oil and gas industry, working internationally with companies including Ceona and Subsea 7.

In addition, the company said it won geophysical survey contracts in Saudi Arabia with its partner Zamil Offshore. The contracts, which include multiple worksites, are for geophysical surveys in the Safiniyah, Marjan and Zuluf fields offshore Saudi Arabia. UTEC will utilize the Zamil 51 offshore support vessel using a combination of multibeam and side scan sonar survey techniques. The projects will be executed in January and February 2018.

—Staff & Reuters Reports

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