Page 13 - EurOil Week 24 2021

EurOil PROJECTS & COMPANIES EurOil

EnQuest borrows $750mn

ahead of Suncor deal

UK UK producer EnQuest has borrowed $750mn to fast-track new projects to offset older ones
to fund its takeover of Canadian firm Suncor’s that are entering decline or winding down com-
EnQuest agreed to buy interest in the Golden Eagle area of the North Sea pletely. The company began decommission-
Suncor’s 26.7% stake as well as for refinancing purposes. ing its Thistle and Heather platforms last year,
in the CNOOC-operated EnQuest agreed to buy Suncor’s 26.7% stake and also opted to close the mature Don and
Golden Eagle area in in the CNOOC-operated Golden Eagle area in Alma-Galia fields prematurely in light of the
February for an initial February for an initial $325mn. In a statement coronavirus (COVID-19) pandemic. Its flagship
$325mn. on June 11, the company said it had obtained Kraken oil project also entered decline recently,
a senior secured borrowing base debt facility less than four years after its launch.
worth $600mn, and $150mn in letters of credit EnQuest has agreed several asset purchases,
(l/c) for up to seven years. although the Suncor deal is by far the largest. In
“It enables the refinancing and simplification January it wrapped up the acquisition of a 40.8%
of our existing capital structure and the acqui- interest in the Bressay oilfield from Equinor for
sition of the Golden Eagle assets, which will $18mn. Then in late April it agreed to buy 100%
add material value, production and reserves to of the Bently heavy oilfield from junior explorer
EnQuest,” the company’s CFO, Jonathan Swin- Whalsay Energy for an undisclosed sum.
ney, said in a statement. “I would like to thank EnQuest estimated in February that it would
our lead banks, BNP Paribas and DNB, together net 10,000 barrels per day (bpd) of oil supply and
with all of the lenders, for their support and I 18mn barrels in 2P reserves from the Suncor
look forward to working with them.” acquisition. It expects the deal to be closed in the
EnQuest is on an acquisition drive, in order third quarter of this year. ™

NEWS IN BRIEF

Poland’s Orlen sees 36% tweeted on June 14 that Ukraine would be Turkey has ‘shared Turkey
willing to accept the launch of the Nord
profit shrinkage in 2020 in Stream II pipeline in return for the de- data on Black Sea gas
occupation of Ukrainian territory and
Lithuanian gas stations ensuring energy security. He called it “fair discovery with Chevron and
compensation for threats”.
Orlen Baltics Retail, the operator of Orlen- The tweet comes as US President Joe ExxonMobil
branded gas stations in Lithuania, saw its Biden arrives in Brussels for two days of
net profit fall by 35.8% in 2020, to €900,200, meetings, including a one-day summit of Turkey has reportedly shared data on its
from €1.401mn in 2019. Nato member states. Ukraine’s security Black Sea gas discovery with US energy
Annual revenue decreased by 14.9% y/y, situation, Nord Stream II and Russian majors Chevron and Exxon Mobil ahead of
to 82.238mn, the company said in its 2020 aggression are among the topics under possible cooperation in extraction.
report submitted to the Centre of Registers. discussion. German Chancellor Angela Ankara has so far insisted it would
Fuel sales decreased by an annual 6.2% Merkel told reporters that she and Biden develop the estimated 540bn cubic metre
to nearly 91.8mn litres, which, according spoke at the G7 meeting in Cornwall, and field alone, but Reuters reported on June 11
to the company, was due to the pandemic, told Biden that Ukraine must remain a gas that a Turkish official with knowledge of the
which led to a decline in fuel consumption in transit partner. matter confirmed the contacts with Chevron
Lithuania’s retail market. “Kuleba’s posturing underscores the and Exxon Mobil.
Meanwhile, sales at the gas station chain’s weak position of the Ukrainian government
convenience stores rose by 6.9%, mostly due regarding Nord Stream. At this point, it can he Black Sea gas discovery is Turkey’s
to the opening of five new stores last year. do little more than hope that its interests biggest-ever gas discovery, but there are
Orlen Baltics Retail, which is 100% owned will be taken into account, as the direct concerns in the industry that independent
by Poland’s Orlen, operated 29 Orlen- interests of the Germans and Americans verification of the announced gas resources
branded gas stations in Lithuania last year. will come to the fore. Kuleba’s tweet might has not been conducted or provided.
be the strongest action that would not be The Turkish official was quoted as saying
considered an intrusion by its intended that until now the government had been
Ukraine states its condition targets,” an analyst at the Kyiv-based cool to foreign corporate interest in the gas
Concorde Capital brokerage said in a
discovery unveiled last August, “but now
for launching Nord Stream II research note. ... Exxon Mobil and Chevron have met
with Turkish Petroleum and received data

Ukrainian Foreign Minister Dmytro Kuleba regarding the discovery”.
Week 24 17•June•2021 www. NEWSBASE .com P13