EnQuest, the largest UK independent oil company in the UK North Sea, has given its go-ahead for a £4bn (€4.8bn) investment in the 137 mbl oil field Kraken development. The development has been approved by the Department of Energy and Climate Change (DECC). This is the largest investment announced in the UK North Sea this year and one of the largest UK industrial investments for 2013.
EnQuest is the operator of Kraken with a 60% stake and will develop the project on behalf of itself and its partners Cairn Energy and First Oil. The field development will consist of 25 wells, tied back to the vessel. Gross peak oil production is expected to be over 50,000 bbl/d of oil with first oil production in 2016/2017. The development has two separate heavy oil fields, both of which will benefit from heavy oil allowances, which the Government has provided support for in order to stimulate investment in the UK North Sea.