EnQuest and Cairn Take on Additional Interests in Kraken Development
Monday 22 February 2016
EnQuest PLC have announced the acquisition of an additional 10.5% interest in the Kraken development for nominal consideration.
The acquisition from First Oil PLC brings EnQuest’s total interest to 70.5%. EnQuest and Cairn Energy PLC, the other current participant in the Kraken development, are both taking up First Oil’s interests pro-rata, in proportion to their holdings prior to the transaction. EnQuest has also waived its right to reclaim approximately $7 million of cash calls paid on behalf of First Oil in January and February 2016. EnQuest acquires the reserves and resources associated with the additional interest.
In 2012, when EnQuest originally acquired its Kraken assets from First Oil, part of the consideration was in the form of a contingent development carry, based on the determination of the level of reserves. This contingent carry provision now ceases to be effective. Further, EnQuest is not reimbursing First Oil in respect of costs incurred by First Oil to date.
Source: EnQuest PLC