UK offshore industry welcomes the news that EnQuest’s £4-billion Kraken development is to go ahead, a project set to recover around 140 million barrels of oil from the North Sea, secure thousands of jobs and generate billions of pounds of revenue for the Treasury over the next 25 years.
The project, EnQuest’s sixth production hub in the UK North Sea, will benefit from heavy oil allowances which the Government has provided to stimulate investment in the UK North Sea.
Oil & Gas UK operations director Oonagh Werngren said:
“This is yet another clear sign that opportunity remains in the North Sea. This project reiterates the importance of the measures that need to be taken to secure the continued success of our industry.
“The Kraken project, the largest investment announced in the UK North Sea this year – and one of the largest industrial investments of 2013 - is an example of how Government tax allowances are working to stimulate activity on the UK Continental Shelf (UKCS). In bringing forward a particularly challenging heavy oil development, it is also a reflection on how the industry can respond to a stable and predictable business environment.
“Development of Kraken will secure a significant number of jobs for the UK, provide a valuable source of primary energy to enhance our security of supply and generate tax revenues for the Treasury, which is all very much to be welcomed.”