Equinor (OSLO: EQNR) and Harbour Power (LON: HBR) have exited their stakes within the Bressay oilfield as a result of windfall tax.
EnQuest (LON: ENQ) revealed the transfer in its full-year 2022 outcomes immediately, confirming it now has a 100% stake within the growth.
“In response to antagonistic adjustments to the EPL, a number of operators have begun to rethink their capital programmes within the UK,” EnQuest stated.
“In late 2022, EnQuest elevated its fairness curiosity in Bressay to 100%, following the withdrawal of Equinor and Harbour Power.”
Harbour Power beforehand held an 18.3% curiosity within the subject, whereas Equinor held 40%, having offered one other 40% share to EnQuest in 2020.
It comes as greater than 90% of North Sea operators have slashed spending as a result of windfall tax imposed on the trade final 12 months.
The 35% levy takes the headline charge of tax on the trade to 75%.
Bressay, a extremely difficult growth with round a billion barrels in place, has been shelved since Equinor acquired it in 2007.
Analyst Wooden Mackenzie has beforehand estimated 200million barrels could possibly be recovered from Bressay, however it’s stated to be much more complicated than Equinor’s Mariner venture, 30miles north-east, which got here on-line in 2019 after a £6.4bn funding.
It was thought the involvement of Equinor might pace up Bressay’s growth due to its expertise at Mariner.
Final 12 months, EnQuest stated it was progressing “varied choices” on the sphere, together with a tie-back to the Kraken FPSO or a possible growth utilizing the EnQuest Producer FPSO, presently laid up within the Cromarty Firth.
Chief monetary officer Jonathan Swinney stated there’s “great worth” in Bressay, even when oil was at $55.