The above headline is from Oil Industry News and was covered by Energy Voice yesterday:
The ominously named Kraken field, 75 miles east of Shetland and developed by EnQuest with Edinburgh-based Cairn Energy has been pumping 50 000 barrels per day for some time it seems. According to the report:
‘The company expects to generate huge amounts of cash from the fields which it could use to reduce its $1.9bn debt pile. However, EnQuest expects to be able to generate big profits on the output from the field. The company reckons its production costs will average $24pb this year.’
$24pb production costs seem a bit high when the BP chief predicted $12pb last year. This may be a more difficult site to extract from. On the other hand, it wouldn’t do to overstate potential profit margins publicly would it?
Either way, 50 000bpd at even today’s prices means income of £3.25 million per day or £1.18 billion per year, from one field!
Did the late, great sci-fi author John Wyndham know something when he gave us the book title ‘The Kaken Wakes’. Maybe, this time, Scotland is waking with the Kraken?
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That’s a cracker (N Ireland accent) It’s a better name than ‘Lancaster’ for an oilfield?