Latest news with #EnQuest
The Herald Scotland
27-05-2025
- Business
- The Herald Scotland
EnQuest slams windfall tax as Aberdeen oil and gas jobs lost
In an operations update, the company told stock market investors: 'We remain focused on delivering a material UK transaction in the short term,' adding that it is in 'ongoing discussions with multiple UK counter-parties'. The company released the update weeks after abandoning a bid to acquire North Sea-focused Serica Energy, which has a stock market capitalisation of £565m. EnQuest has seen its valuation fall to £212m following a drop of around a third in the price of the company's shares since March amid the volatility triggered by Donald Trump's tariff threats. READ MORE: Israeli-owned firm takes control of UK's biggest gas field Against that backdrop, the company said the windfall Energy Profits Levy was an increasingly unfair burden on firms which could have disastrous unintended consequences. "The recent stepdown in commodity prices has further amplified calls for the UK government to remove the Energy Profits Levy and return the North Sea to a position of global competitiveness,' said chief executive Amjad Bseisu in the update. 'The status quo, which sees the UK as the only country levying a windfall tax on homegrown energy producers, where no windfall profits exist, is resulting in irreversible damage to this strategic national industry and is driving job losses across the sector.' Earlier this month one of the biggest North Sea producers, Harbour Energy, announced plans to shed 250 jobs citing the continued challenging domestic fiscal and regulatory environment. In the update, EnQuest said it had launched a drive to cut costs to boost efficiency 'commensurate with a low commodity price environment'. The company did not elaborate on the implications for jobs in the North Sea operations it runs from Aberdeen. It has been approached for comment. READ MORE: SNP Government oil hypocrisy shocking amid Scottish jobs cull All the same, the update made clear that EnQuest still sees plenty of potential in the UK North Sea. 'We are resolute in our belief that our relative advantages, both operational and fiscal, see us ideally placed as a North Sea consolidator," said Mr Bseisu in the update. EnQuest became a significant force in the area after investing in assets it acquired amid tough times in the industry from firms that appeared to have lost interest in them, such as BP. EnQuest started production from the Kraken field off Shetland in 2017 (Image: EnQuest) The company's directors appear confident that the strategy makes sense amid the current downturn. This may create opportunities to acquire assets on attractive terms. Mr Bseisu's comment highlights the fact that EnQuest has accumulated historic losses that it can use to reduce the tax bills it will have to pay on the profits generated by its North Sea production operations. EnQuest incurred the losses amid moves to increase production from the assets it acquired. This has involved it drilling additional wells to help boost the recovery of reserves from existing fields and developing new ones such as Kraken. The company has continued with the strategy since the windfall tax was first introduced by the former Conservative Government in 2022. Mr Bseisu noted that EnQuest recently increased output from the Magnus field north east of Shetland to the highest level since 2022. The success reflected 'strong reservoir management and good infill drilling results'. EnQuest expects to start production from a further infill well on Magnus next month. The company acquired Magnus and related assets from BP in deals worth $385m in total in 2018, amid the slump in the area that started after oil prices plunged in 2016 as growth in supplies ran ahead of demand. READ MORE: North Sea drilling curb plans look mad amid Trump trade threats EnQuest acquired control of the undeveloped Bressay oil field east of Shetland from Equinor in July 2020 for an initial £2m, following the plunge in oil prices caused by the pandemic. In January EnQuest acquired Harbour Energy's Vietnam business in an $84m (£62m) deal. It has long had a presence in Malaysia. The company said it sees 'significant upside across its existing Asia portfolio, and is in advanced discussions around a further new country entry'. EnQuest made $94m profit after tax in 2024 on sales of $1.2bn. When EnQuest and Serica ended takeover talks early this month the companies said that market volatility had made it impossible to agree the terms concerned. READ MORE: North Sea oil giant plans $500m investor payouts as it cuts jobs Serica announced in March that it was in talks with EnQuest regarding a deal that would have created a company with increased scale, unlocked significant synergies and created a stronger platform for further growth. It was expected then that EnQuest would make an all-share offer for Serica.
Telegraph
27-05-2025
- Business
- Telegraph
Miliband's North Sea shutdown causing ‘irreparable damage'
Ed Miliband's retreat from the North Sea is causing 'irreversible damage' to Britain's oil and gas industry, a leading energy producer has warned. Amjad Bseisu, chief executive of listed oil company EnQuest, criticised the Energy Secretary's windfall tax, claiming it had sparked a swathe of job losses. He has called for an urgent rethink on the levy as falling oil prices pile more pressure on North Sea firms, which are facing a 78pc tax on profits. Mr Bseisu said: 'The recent stepdown in commodity prices has further amplified calls for the UK Government to remove the Energy Profits Levy and return the North Sea to a position of global competitiveness. 'The status quo, which sees Britain as the only country levying a windfall tax on homegrown energy producers, where no windfall profits exist, is resulting in irreversible damage to this strategic national industry and is driving job losses across the sector.' His comments come as a growing number of North Sea producers consider cutting jobs and scaling back investment. This is partially in response to the Government's decision to increase the oil and gas windfall tax from 75pc to 78pc last year, while also extending the levy for an extra year to 2030. The industry has also been hammered by Mr Miliband's decision to ban all new drilling in the North Sea, as he seeks to prioritise investment in renewables to help Britain achieve its net zero targets. Mounting pressure led to Harbour Energy, the UK's largest oil and gas producer, announcing plans to cut 250 jobs in Aberdeen earlier this month. Scott Barr, managing director of Harbour Energy's UK business, blamed the job losses on 'the Government's ongoing punitive fiscal position and a challenging regulatory environment'. A new report also revealed that Britain's oil and gas industry is already suffering an exodus of staff. According to a survey by the Aberdeen and Grampian Chamber of Commerce, almost half of North Sea producers said their employees were leaving the UK to work abroad. They said the moves were caused by weak domestic confidence, uncompetitive government policy and a lack of viable projects in the UK. It comes after a separate analysis found last week that the windfall tax would leave 1.5bn barrels of oil and gas stuck in abandoned North Sea oil wells.
Yahoo
09-05-2025
- Business
- Yahoo
Harbour Energy announces 250 job cuts at Aberdeen UK unit
Harbour Energy, the largest oil and gas producer in the British North Sea, has reportedly announced plans to cut its UK workforce by a quarter, equating to around 250 jobs, citing government policies. The decision, affecting the Aberdeen unit, is driven by reduced investment due to the UK Government's stance on the North Sea fossil fuel industry, according to a report by Reuters. The company's UK managing director, Scott Barr, was quoted by the news agency as saying: 'The review is unfortunately necessary to align staffing levels with lower levels of investment, due mainly to the Government's ongoing punitive fiscal position and a challenging regulatory environment.' This move is another setback for Scotland's oil and gas sector, following Petroineos' recent cessation of crude oil processing at the Grangemouth Refinery. Harbour Energy, which reported a loss of £93m in 2024 after a net profit of £45m in 2023, has called for UK Government reforms to the windfall tax, which is set to expire in 2030. The tax rate was increased last October to 38%, bringing the total sector tax to 78%, one of the highest globally. The UK Government aims to fund renewable energy projects with the revenue from the Energy Profits Levy. However, since the levy's introduction, North Sea producers have been divesting assets, consolidating operations and looking to invest elsewhere. A government spokesperson expressed its intention to support workers and communities affected by these commercial decisions. In addition to workforce reductions, Harbour is reassessing the resources for its Viking carbon capture and storage project. Delays in the government's Track-2 process, which seeks to establish two new carbon capture usage and storage clusters by 2030, have impeded progress. Viking is one of the projects awaiting a decision on government funding. 'We must take these difficult steps in response to the challenges presented by the current external environment,' Barr added. In a separate development earlier this year, EnQuest agreed to acquire Harbour Energy's Vietnam business for a headline value of $84m, with an expected payment of $35m upon completion. This acquisition aligns with EnQuest's strategy to expand its international presence with assets that promise quick returns, low capital expenditure and reduced carbon intensity. "Harbour Energy announces 250 job cuts at Aberdeen UK unit" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
02-05-2025
- Business
- Reuters
EnQuest bows out of Serica deal as market jitters hinder agreement on terms
May 2 (Reuters) - North Sea-focused oil producer EnQuest (ENQ.L), opens new tab will not make an offer for UK's Serica Energy (SQZ.L), opens new tab, the companies said on Friday, as the two could not agree on favourable terms in time amid market volatility. EnQuest shares were down about 5% at 13.14 pence, while Serica shares were up 0.3% at 127 pence at 1623 GMT. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. Serica said in March it was in talks with EnQuest about a possible deal. The termination occurs amid a broader wave of economic uncertainty fueled by sweeping global tariffs imposed by U.S. President Donald Trump. The energy sector has been particularly rattled in early 2025, as recessionary concerns have weighed heavily on oil demand expectations, dragging prices lower as investors brace for a slowdown in global consumption. Simultaneously, the OPEC+ alliance has been ramping up oil output, adding to global supply and compounding the downward pressure on prices. The ripple effects of the trade tensions extend beyond energy. U.S. crop commodities trader Bunge Global 's (BG.N), opens new tab planned $34 billion merger with Glencore-backed (GLEN.L), opens new tab Viterra is being stalled due to escalating U.S.-China trade friction, Bloomberg News reported on Friday, citing people familiar with the matter. The trade tensions have also significantly narrowed the window for initial public offerings. Among the companies that have recently put their IPO plans on hold are Swedish fintech firm Klarna (KLAR.N), opens new tab, San Francisco-based Chime, and ticketing platform StubHub. EnQuest's decision came hours ahead of a "put up or shut up" deadline on Friday for the proposal, which would have given Serica shareholders a majority stake in the combined company and returned capital to investors. Serica said it was confident in its "standalone ability to generate significant cash flow and deliver shareholder value and highly competitive shareholder returns."
Yahoo
24-04-2025
- Business
- Yahoo
EnQuest forays into Indonesia with new PSC blocks in Papua Barat
EnQuest and its joint venture (JV) partners have won two production sharing contract (PSC) blocks in Papua Barat, Indonesia. The company received confirmation from the Ministry of Energy and Minerals of Indonesia for the two blocks, named Gaea and Gaea II. The blocks hold a multi-trillion cubic feet unrisked resource potential, positioning EnQuest and its JV partners for significant growth in the region. Upon execution of the PSC, EnQuest will operate with a 40% working interest. Its partners in the venture include the Tangguh JV, with a similar stake, and PT Agra Energi Indonesia, holding a 20% interest. The Tangguh JV comprises notable industry players such as BP Exploration Indonesia, CNOOC Southeast Asia, ENEOS Xplora, Indonesia Natural Gas Resources Muturi, MI Berau and KG Wiriagar Petroleum (a Mitsui company). This development marks EnQuest's inaugural venture into the Indonesian market, a strategic move that aligns with the company's broader expansion goals in South East Asia. EnQuest recently strengthened its regional portfolio by extending its gas production operations in Malaysia and initiating the acquisition of Harbour Energy's Vietnam business. The acquisition from Harbour Energy, valued at $84m (£63.14m), will see EnQuest paying $35m upon completion, adjusted for interim period cash flows. The transaction reflects EnQuest's strategic focus on international growth with assets that promise rapid returns, low capital expenditure and a reduced carbon footprint. The company's entry into Indonesia underscores its commitment to pursuing opportunities across the full upstream life cycle in a region rich with potential. "EnQuest forays into Indonesia with new PSC blocks in Papua Barat" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
