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EnQuest offering stake in North Sea Golden Eagle oilfield, sources state

Britain's EnQuest is wanting to sell its 27% stake in the Golden Eagle oilfield in the British North Sea as it seeks to lower debt levels, two sources told on Tuesday.

It was uncertain how much the sale of the non-operated stake would raise. The procedure is being run by investment bank Jefferies, the sources stated.

A spokesperson for EnQuest declined to comment. A. representative for Jefferies also declined to comment.

EnQuest purchased the Golden Eagle stake from Suncor in. 2021 for $325 million - roughly equivalent to EnQuest market. capitalisation at the time - to improve its production capacity by. another 10,000 barrels of oil equivalent per day.

EnQuest has actually had a hard time in the last few years with high financial obligation levels. and a drop in earnings after Britain enforced a 35% windfall tax. on North Sea manufacturers after the rise in energy costs. following Russia's intrusion of Ukraine in 2022.

The company, headed by CEO Amjad Bseisu, reported a bottom line. of $31 million in 2023 and a net financial obligation of $481 million, compared. with $717 million a year earlier. Its current market. capitalization is around 307 million pounds ($ 382 million).

EnQuest likewise announced in March its very first shareholder. circulation in the kind of a $15 million share repurchase in. 2024.

Shares in the business were up 0.1% early on Tuesday.

The Golden Eagle job is operated by Chinese-owned oil. and gas firm CNOOC and includes the producing Golden. Eagle, Peregrine, and Solitaire fields.

When the purchase was revealed in February 2021, Chief. Financial Officer Jonathan Swinney had actually stated it would make. EnQuest around $13 million a month. The company also finished a. $ 750 million financial obligation refinancing in June 2021 to support the. purchase.

EnQuest's site says Golden Eagle still has substantial. development capacity, consisting of more sub-sea and platform. infill drilling, with an anticipated field life extending into. the early 2030s..

(source: Reuters)