Kuwait to invest $500M in UK North Sea oil field

IRJ - May 30 - Enquest will farm out a 35 per cent interest in its Alma and Galia oil field developments to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for a total investment of $500 million in cash.

The Alma field, previously known as the Argyll field was the first oil field to be developed in the UK North Sea. Alma was previously abandoned because of high water content of output. First production is anticipated in the fourth quarter of 2013, with peak gross production of over 20,000 boepd and the field is estimated to contain 29 million barrels of oil.

According to the Financial Times, Amjad Bseisu, chief executive of EnQuest, said the talks began last year with partners over investing in the $1bn project but were held up until tax breaks could be confirmed from the UK government.

Commenting on the deal, chief secretary to the Treasury, Danny Alexander, said: “This is good news for North East Scotland and the whole of the UK…Today’s deal between EnQuest and KUFPEC, bringing up to £300m of foreign investment into the North Sea, proves that the UK continental shelf remains an attractive prospect. The Government will continue working with the industry in the North Sea to get the most of what is a huge national asset.”