Cairn has announced a reserves downgrade on Kraken by 6.8mmboe (net) or 19% to reflect ongoing production issues. The field has been hit by a myriad of problems since start-up in 2017 and its failure to be farmed-down by operator EnQuest in 2018 highlights the technical concerns on the field.
The field's output has been hit by poor FPSO uptime driven by system outages as well as higher water-cut than originally expected. There will be a planned shutdown later in 2019 to make improvements to the FPSO uptime.
Operator EnQuest maintains the level of 2P reserves and does not expect to recognise an impairment as it finalises its year end 2018 accounts.
The partners in Kraken are EnQuest (70.5% operator) and Cairn (29.5%).
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