Viaro Energy signs SPA with EnQuest to acquire 15% stake in the Bressay field development

Highlights:

  • London-based independent upstream company Viaro Energy signed an SPA with EnQuest for the acquisition of a 15% working interest in each of the Bressay field and the EnQuest Producer floating production, storage and offloading vessel through its main operating subsidiary RockRose;
  • Bressay is one of the largest undeveloped oil fields in the UKCS, with an estimated potential to extract around 200 million boe;
  • Viaro’s acquisition provides stability for Bressay’s development and supports JV partner EnQuest to advance with the Field Development Plan;
  • The Bressay acquisition marks Viaro’s entry into the Northern North Sea, as an addition to significant operations in the surrounding Central North Sea, Southern Gas Basin and the West of Shetland.

Viaro Energy (“Viaro”), the independent British energy company operating in the UKCS North Sea and the Netherlands, is pleased to announce that its wholly owned subsidiary, RockRose Energy (“RockRose”), has signed a Sales and Purchase Agreement (“SPA”) with EnQuest to acquire a 15% interest in the Bressay field and its EnQuest Producer FPSO for a total consideration of £46 million. The early production facility development under review has capital expenditure estimated at £600 million, with £90 million being RockRose’s net share.

Bressay is considered one of the largest undeveloped oil fields in the UK Continental Shelf (“UKCS”) with more than 115 MMbbls of net 2C reserves and with an estimated potential to extract around 200 million boe. Discovered in 1978, Bressay lies in UKCS Blocks 3/28a, 3/27b, 3/28b, 9/2a, and 9/3a of the Northern North Sea, east of the Shetland Islands.

Pending regulatory approval of the transaction, EnQuest will hold the remaining 85% stake in the field and is the operator. The Viaro Group’s partnership with EnQuest provides support for the Bressay development and paves the way for a Field Development Plan (“FDP”) to be advanced in line with EnQuest’s ongoing plans.

The Bressay acquisition marks Viaro’s entry into the Northern North Sea, along with significant operations in the surrounding Central North Sea, Southern Gas Basin and the West of Shetland. It augments the acquisition of the Anning and Somerville gas developments from Hartshead Resources earlier in 2023, which Viaro’s subsidiary RockRose plans to assume operatorship of in 2024.

Francesco Mazzagatti, CEO of Viaro Energy, commented: “We are grateful to the team at EnQuest for the smooth negotiation process on the Bressay acquisition. Long considered one of the largest developments on the UK Continental Shelf, Bressay is an essential component of the country’s effort to secure viable energy sources in the long term. Apart from its significant potential to contribute to the UK’s energy security, ensuring the development of Bressay is crucial in order to encourage more investments in the UKCS, where we hope the tax regime will soon stabilise.

It is an important addition to our portfolio, as it not only confirms our serious commitment to support the development of North Sea assets to their fullest potential, but also fits into our strategy to continuously reinvest into new assets and development opportunities. Considering EnQuest’s successful track record with the surrounding developments in the area, we are confident they are the right partner to ensure that the extraction will be aligned with the highest industry standards.”