EnQuest Agrees to Decommision Fields for $50 Million

By FeaturesDow Jones Newswires

EnQuest PLC (ENQ.LN) said on Wednesday that it has agreed with BP PLC (BP.LN) to undertake the management of physical decommissioning activities for Thistle and Deveron, two North Sea oil fields, for $50 million.

EnQuest first reported that it had the option to decommission the two fields on Jan. 24., when it announced the acquisition of a 25% stake from BP of the Magnus oil field.

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The company said it would receive $30 million in cash for managing the fields' decommissioning and making payments by reference to 3.7% of the gross decommissioning costs, with an option to receive an additional $20 million in cash in exchange for making additional payments by reference to 2.4% of the gross decommissioning costs.

EnQuest said that the transaction aligns the interests of all the involved parties.

Shares at 0810 GMT were up 1.2%, or 0.45 pence, at 38.15 pence.

Write to Oliver Griffin at oliver.griffin@dowjones.com

(END) Dow Jones Newswires

January 31, 2018 03:37 ET (08:37 GMT)

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