EnQuest’s Kraken field delivers first oil in North Sea

EnQuest’s Kraken field delivers first oil in North Sea

EnQuest confirmed it has produced first oil from the North Sea’s largest new oil project in a decade, despite difficult industry conditions.

The major UK independent oil producer announced that two of the three drill centres saw the first flow of oil last week at its £4 billion Kraken oil field.

The Kraken project was the largest industrial investment in the UK in 2013 and could produce up to 50,000 barrels of oil per day when in full production.

EnQuest CEO Amjad Bseisu said the Kraken field could change the company’s fortunes in the North Sea basin.

“Kraken is a transformational project,” Bseisu explained. “With production from Kraken, EnQuest is moving from a period of heavy capital investment, to a focus on cash generation and deleveraging the balance sheet.”

While UK business and energy secretary Greg Clark expressed that Kraken’s first oil was good news for opening up the whole basin.

“This is a landmark project for EnQuest and the UK oil and gas sector as one of the largest new oil fields to come on-stream in the North Sea in a decade. This has been made possible through significant UK government support to encourage investments of this type in the North Sea, supporting thousands of highly-skilled jobs,” Clark said.

“We’ll continue to build on this support for the oil and gas sector as it looks to seize the significant opportunities that lie ahead.”