EnQuest expands Malaysian footprint with Seligi stake

13th Jun 2014 07:52

Oil company EnQuest is to expand its footprint in Malaysia through the purchase of an operated interest in the Seligi oil field and PM8 Production Sharing Contract (PSC).EnQuest's subsidiary EQ Petroleum Production Malaysia is buying ExxonMobil Exploration and Production Malaysia's interest in Seligi and the PM8 PSC, located offshore Malaysia.The company, which already has two projects in the country, will take over operatorship and own a 50% stake, with partner Petronas retaining its 50% interest."Following completion, the acquisition will contribute approximately 5,000 barrels of oil equivalent per day of net production and 11.0m barrels of oil equivalent of net 2P [proven and probable] reserves to EnQuest."EnQuest is paying $67m in cash for the stake.The current PM8 PSC is due to expire at the end of June, but EnQuest and Petronas will enter into an agreement to continue developing the asset until 2033."I am delighted to announce this acquisition which builds on our core skill of enhancing value from maturing fields," said Chief Executive Amjad Bseisu.''This acquisition follows from our recent partnership with Petronas on the Tanjong Baram field and is a significant expansion to our Malaysian operation."EnQuest's shares were down 0.1% at 139.3p by 08:20.BC