Viaro Energy (“Viaro”), the independent British energy company operating in the UKCS North Sea and the Netherlands, is pleased to announce that it has received regulatory approval from the North Sea Transition Authority (“NSTA”) for the assignment in the Bressay oil field licence, following the recently completed acquisition agreement with EnQuest.
Under the terms of the Sales and Purchase Agreement, Viaro’s wholly owned subsidiary, RockRose Energy (“RockRose”) acquired a 15% interest in the Bressay field and the EnQuest Producer FPSO for a total consideration of £46 million. The proposed early production system development under review has estimated capital expenditure of £600 million, with £90 million being RockRose’s net share.
Viaro will collaborate with the operator EnQuest on advancing the development concept and Field Development Plan (“FDP”) in order to access the c. 115 MMbbls of 2C resources at Bressay, which also includes a potential gas tie-back to the Kraken oil field in this initial development phase. With an estimated potential to extract around 200 million boe, Bressay is viewed as one of the largest undeveloped oil fields in the UK Continental Shelf (“UKCS”).
Discovered in 1978, Bressay is located in UKCS Blocks 3/28a, 3/27b, 3/28b, 9/2a, and 9/3a of the Northern North Sea, east of the Shetland Islands. The Bressay acquisition marks Viaro’s entry into the UKCS Northern North Sea.