Oil & Gas company EnQuest PLC on Thursday said it has exercised its options with BP PLC relating to the Magnus field, as well as to the Thistle and Deveron fields in the North Sea.
Magnus is the UK's most northerly oil field, located 160 kilometres north east of the Shetland Islands. The Thistle and Deveron fields, which are only around 3 kilometres apart, are also to the north-east of the Shetland islands.
The acquisition of Magnus is expected to add USD500 million of net present revenue to EnQuest.
Furthermore, exercising the option over Thistle and Deveron will result in a USD20 million cash payment from BP in exchange for EnQuest increasing its payment obligation of BP's decommissioning costs to 7.5% from 4.5%. EnQuest's obligation payment cap will increase to GBP99 million from GBP42 million as a result.