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 barrels per day (bbl/d) by mid-year following its start-up 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 around $70/bbl, levels not seen since 2014, is expect to spur further interest, banking sources said.

The start-up of the field has had some technical hiccups that forced the company to cut its production targets for 2017.

Last November, EnQuest said Kraken was producing around 23,000 bbl/d, with production expected to reach its target in the first half of 2018.

EnQuest's lenders in November agreed to ease the terms of its loans as it struggled with a debt of around $2 billion compared with a market value of around $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 around $1.4 billion while Jefferies analysts valued it at around $1.3 billion. Cairn Energy Plc owns the remaining 29.5% in the Kraken Field. (US$1 = 0.7205 pounds)

Offshore