Israeli energy group Delek is in negotiations with EnQuest for the acquisition of 20% of the rights in the exploration and production licenses of the Kraken Field in the British sector of the North Sea.
Delek would take a 20% stake in the Kraken oil field located in Blocks 9/2b and 9/2c (License P1575), approximately 350 km north-east of Aberdeen in Scotland. The field is estimated to hold 147 mbl of heavy crude oil (approximately 14 API). Production is expected to start in the first half of 2017 and will take place using 25 wells (14 for production and 11 for injection) using a floating production and storage offload (FPSO). Delek would invest US$162m until the start of production and would lend US$20m to EnQuest for a period of 5 years.
Earlier this year EnQuest increased its stake in Kraken to 70.5% with the acquisition of an additional 10.5% share from First Oil. The remaining 29.5% stake is held by Cairn Energy.