13th Jun 2014 09:04
LONDON (Alliance News) - EnQuest said it has expanded its footprint in Malaysia through the acquisition of an operated interest in the producing Seligi oil field and PM8 production sharing contract, located offshore, from ExxonMobil Exploration and Production Malaysia Inc for USD67 million in cash.
The oil and gas development and production company said that on completion of the acquisition it will contribute approximately 5,000 barrels of oil equivalent per day of net production and 11.0 barrels of oil equivalent of net 2P reserves attributable to EnQuest.
Under the deal, EnQuest will take operatorship for the interest from ExxonMobil, while EnQuest and Petronas Carigali Sdn Bhd will each hold a 50% participating interest.
The current PM8 production sharing contract is due to expire at the end of June this year, although under the deal it will enter into an agreement with Petronas for the continuing development and production of petroleum resources from the PM8 production sharing contract and Seligi oil field until 2033.
The acquisition is the company's third project in Malaysia.
EnQuest shares were trading 0.1% higher at 139.60 pence Friday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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