EnQuest intends to execute its option to acquire BP's retained 75% interest in Magnus, and thus become sole Magnus licensee. EnQuest announced on 7 September 2018 that it is planning a rights issue to raise approximately GBPS 107 million (US$ 138 million) to cover US$ 100 million cash fee for BP's 75% stake and drilling two infill development wells at Magnus. The option is valid until 15 January 2019 and also includes 9.1% of Sullom Voe oil terminal (SVT), 27% in Northern Leg Gas Pipeline (NLGP) and 11.5% of Ninian Pipeline System (NPS). Total deal consideration is US$ 300 million base consideration potentially rising to US$ 1 billion depending on asset performance. Apart from the US$ 100 million cash portion at deal completion, the balance will be settled via a 37.5% asset cash flow interest, retained by BP up to the aforementioned US$ 1 billion maximum consideration. BP sold 25% operator share in Magnus oil field to EnQuest on 1 December 2017, backdated to the start of 2017. This is part of a larger deal, first announced on 24 January 2017, that gave EnQuest 3% of SVT, 9% of NLGP and 3.8% of NPS, for a total consideration of US$ 85 million, to be paid via cash flows from the assets. BP will remain liable for the existing wells, but EnQuest will pay 7.5% of BP's share of decommissioning costs, up to the amount of EnQuest's net receipts from the assets. EnQuest also has an option to manage Thistle and Deveron decommissioning, in exchange for US$ 50 million from BP. Magnus field is located in Northern North Sea part blocks 211/7a and 211/12a, with gross reserves of 63.4 MMboe and production of 16,600 boe/d. Current P193 - 211/7a & 211/12a and Magnus Field partners are EnQuest Heather Ltd (25% + Op) and BP Exploration Operating Company Ltd (75%).
United Kingdom, P193