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Turning opportunities into value by
targeting maturing assets and
underdeveloped oil fields
FIRE EXITS FLOORPLAN
1
▪ Realising value through capability
▪ 2017 Highlights
▪ Operations
▪ Doing business with EnQuest
▪ Indicative programme of work 2018
Agenda
2
Continual Improvement Plan – SAFE Behaviours
• Embed Life Saving Rules
• Deliver new Control of Work system
• Update Operations and Maintenance
procedures
• Improve risk perception awareness
• Continue to implement HCR prevention plans
• Fully implement Environmental Management
System Awareness
• Complete ‘Play Your Part’ roll out
• Drive improved self monitoring practices
• Recognise and share positive HSE behaviours
• Continue Safety Reps and E-Reps training
• Work with our service providers to learn from
and harness industry best practice
• Use leadership visits to engage with everyone
on Major Accident Hazards 3
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EnQuest Growth : from 6 to 8 hubs, a growing &
increasingly diversified portfolio
The Dons
Heather/Broom
Greater Kittiwake Area
Thistle/Deveron
Kraken
PM8/Seligi
Alma/Galia
Magnus
SVT
Realising value through capability
• Field life extension
• Production efficiency
• Project delivery
• Wells delivery
Differential capability
• Supply chain excellence
• Capex discipline in projects
Low Cost Operator
• Restructuring delivered in 2016
• Targets aligned to cash generation
Financial Discipline
A relentless focus on Safe Results with no harm to people and respect for the
environment
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EnQuest has delivered strong Compound Annual Growth
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* CAGR for first seven years will be 17%, based on the mid-point for our 2017 production range
EnQuest’s reserve base has also grown considerably
(68)
MMboe
202
MMboe
215
MMboe
+151
MMboe
Contingent
Resources
Net 2P reserves
start 2010
Production
2010 to 2016
Additions to
reserves
2010 to end 2016Net 2P reserves at end 2016
81
MMboe
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H1 2017
▪ Delivered Kraken first oil on schedule and under budget
▪ Agreed to acquire Magnus/Sullom Voe Terminal
Outlook 2017 full year and beyond
▪ Full year production guidance at 37,015 Boepd +/- 10%
▪ To date Kraken well rates above expectations
▪ On course for gross 50,000 Boepd plateau in H1 2018
▪ Magnus completion anticipated before year end
▪ Substantial potential in existing portfolio, net 2P 215 Mmboe
H1 highlights and latest full year outlook
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Kraken – Wells
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▪ 13 wells completed to date and a further four being completed on DC3
▪ Total footage drilled: 200,733ft (38 miles)
▪ Gross Reservoir interval drilled: 38,719ft
▪ World record: Longest Optipac (alternate-path) gravel pack - 4,347ft (Jun 2017)
▪ Drilling programme currently 288 days ahead of April 2014 pre-drill estimate as
a result of:
▪ Collaborative team approach between: wells, subsurface, subsea; onshore / offshore; EnQuest / supply chain
▪ Batch drilling philosophy with focus on continuous improvement from operation to operation
▪ Use of appropriate ‘value-adding’ technology
▪ Continuing to drive down well cost through supply chain management and drilling performance
Acquisition of MagnusAvenue for growth in a capital constrained world
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▪ EnQuest is a life extension expert, with the right integrated technical skills, operational scale
and high level of operating efficiency
▪ Well placed to extend the lives of Magnus and SVT
▪ Will provide new opportunities for the assets and benefit to the wider UKCS basin
▪ The OGA is focused on Maximising Economic Recovery (‘MER UK’)
▪ This transaction is a very good example of this
▪ EnQuest track record of successful integration of acquisition assets: GKA,
Malaysia
▪ Existing operator of three facilities adjacent to Magnus, also potential for economies of scale
▪ Innovative transaction structure aligns interests of partners and is a natural evolution of
EnQuest’s business
▪ Recognises EnQuest as a natural strategic operator of maturing assets
2018/19 Indicative Activities*
Central North Sea and Quad 9
▪ Continued drilling of Kraken wells (DC4)
▪ DC4 Subsea Installation
▪ Optimising Scolty/Crathes production (Chemical
treatments & new pipeline, 2019 execution)
▪ Targeting completion of Eagle development planning
▪ Alma Galia workovers
▪ GKA scale squeeze
Subject to budget approval
2018/19 Indicative Activities*
Northern North Sea
▪ Thistle and Heather well abandonments
▪ Heather development well
▪ Thistle ESP workover
▪ Dunlin bypass contract award for 2019 execution
▪ Magnus drilling, 3 wells
▪ Thistle Gas Compressor project
▪ £10million of licence to operate capital brownfield project scopes
Subject to budget approval
Doing business with EnQuest
Doing Business with EnQuest
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Supply Chain Code of Practice
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Committed to full compliance with
the Supply Chain Code of Practice
to:-
In support of the Code, our preferred
suppliers are registered with FPAL.
For more information or to register your
company go to www.FPAL.com
▪ Improve performance
▪ Eliminate unnecessary costs
▪ Add value and boost
competitiveness
Becoming a Supplier
Performance Reviews
Audits
Institutionalising low cost base – Internal & External
H2 H1 H2H2H1 H1H2 H1
201720162015
Centralised Procurement
2018
Integrated Logistics
Operators Inventory Sharing
Operations Excellence
Supplier Forum
Aviation Hub
Inventory Assurance Plan
Open Book Contracts
Alternate Sourcing
Fixed Price Catalogues
Shared Services Org
Should Cost' Modelling
Completed In Progress Planned
Vendor Managed Inventory
Marine Hubs
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2017/2018 challenges and EnQuest expectations
Long term
contracts
Transparency through open
book contracts
Manageentire
Supply Chain
Post Award Contract
Management
Eliminate Waste
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Reduce current
OPEX, CAPEX &
ABEX
To allow future for
investment
Doing business with EnQuest
Description Estimated Tender Date Area
Lifeboat Maintenance Q1 2018 Operations /
HSE
Battery Maintenance/Supply Q1 2018 Operations
Diesel Engines Q1 2018 Operations
Nitrogen and Maintenance Gases Q2 2018 Operations
Safety Consumables Q2 2018 HSE
Subsea IRM Review Strategy Subsea
Liner Hangers Q1 2018 Wells
Bridge Plugs Review Strategy Wells
Wellhead Maintenance Q1 2018 Wells
Suspension Plugs H1 2018 Wells
Offshore Solids Control Equipment/Onshore Processing H1 2018 Wells
ESPs Strategy Q4 2017 Wells
Dons NE Well Service contracts Strategy Q4 2017 Wells
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Indicative programme - 17/2018
Doing business with EnQuest
Description Estimated Tender Date Area
Investigatory services incl. Engineering Services, HSE,
integrity etc.
Ongoing – RFQ’s to be
issued as and when required
Operations
Production Chemicals Q1 2018 Operations
Pumps Strategy Q1 2018 Operations
Platform ROVs Ongoing, RFQs issued on
an ad hoc basis
Operations
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Indicative programme 17/2018
Summary
EnQuest expects suppliers to:
▪ Take initiatives and come up with ideas
▪ Simplify service delivery processes
▪ Reduce cost base through sustainable
structural changes
▪ Challenge entire supply chain
▪ Transportation costs
Suppliers should expect EnQuest to:
▪ Continue to grow and keep activity levels
high
▪ Maintain a leading industry position
▪ Open to suggestions for changing cost
base and improving quality
▪ Commit to longer term contracts with
suppliers who deliver best quality at lower
cost
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Contracts & Procurement Contacts
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Sachli Zare, Manager Purchase to Pay (Dubai)
DD: +971 4 550 7129
Barry Bremner, Contracts Team Lead
DD: +44(0)1224 975136
Neil Imrie, Senior Contracts Engineer, Subsea
DD: +44(0)1224 975275
Craig MacPhee, Senior Contracts Engineer,
Maintenance
DD: + 44 (0) 1224 975327
Lesley Thomson, Contracts Manager
DD: +44(0)1224 975350
Nikki Stevenson, Contracts Engineer, Operations
DD: +44(0)1224 975484
