REG - EnQuest PLC - EnQuest response to NSTA sanctions

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RNS Number : 8264Z  EnQuest PLC  09 April 2026

 

EnQuest PLC, 9 April 2026

EnQuest response to NSTA sanctions

 

EnQuest PLC ("EnQuest" or the "Group") is widely recognised as the UK North
Sea's leading decommissioning operator. The Group is proud to have won
Offshore Energies UK's prestigious Excellence in Decommissioning Award in both
2022 and 2025. In the period encompassing these awards, EnQuest has:

·      Removed four major infrastructure hubs and safely plugged and
abandoned 84 wells, representing 47% of all wells decommissioned in the
central and northern UK North Sea in the period.

·      Completed this work at costs approximately 15% below the NSTA's
latest benchmark average.

·      Ensured the deployment of a wide range of personnel and service
equipment vital to the UK North Sea.

·      Developed innovative in-house technologies, workflows and
techniques that are now benefiting decommissioning management across the North
Sea.

EnQuest is therefore disappointed by the NSTA's decision to issue a sanction
fine of £16.5 million for non-compliance in relation to the timing of
plugging and abandonment ('P&A') of 33 relatively young and inactive wells
across its North Sea asset portfolio.

 

Prioritising safety and the management of risk to life and the environment

Safety is EnQuest's principal operating focus for decommissioning. This means
prioritising work on the basis of asset integrity to minimise risk to human
life and the environment. As a result, our scheduling can differ from the
date-driven and more mechanistic approach taken by the NSTA's sanctions team.

The wells that are the subject of NSTA sanction are within fields that ceased
production from 2020 onwards. This means they are among the younger suspended
well stock in what is otherwise a mature basin with multiple decommissioning
priorities. They ranked as low integrity risk versus other wells in EnQuest's
portfolio, while the majority of the 84 decommissioned wells were c.40 years
old.

The Group has also been clear in its communications with the NSTA that forcing
additional decommissioning activity into an already full multi-asset
programme, purely to comply with the NSTA's mandated timeline, would
compromise the safe completion of P&A work, which, based on asset
integrity, was of higher priority.

EnQuest has presented to NSTA a clear and credible plan for the
decommissioning of the sanction wells, and to deliver this, the Group signed a
multi-year rig contract with Well-Safe Solutions in 2025. This contract
secures vital supply chain resources in the North Sea well into the next
decade.

The NSTA has, however, decided not to take EnQuest up on its offers to discuss
the sanction and our associated representations, and has instead moved
directly to its decision.

EnQuest is considering all options with regard to formally appealing the
sanction and the fine.

 

Commenting on the announcement, Amjad Bseisu, CEO of EnQuest, said:

"This decision by the NSTA is not aligned with EnQuest's proven track record
and the recognition achieved as a leading North Sea decommissioning operator.

 

At a critical time for the UK energy sector, we believe it is essential that
the regulator supports industry efforts to safeguard energy security, protect
jobs and sustain economic prosperity, rather than penalising a clear leader in
decommissioning execution that is prioritising safety and an integrity-based
approach, above all else."

Ends

 

For further information please contact:

 

 EnQuest PLC                                                      Tel: +44 (0)20 7925 4900
 Amjad Bseisu (Chief Executive Officer)
 Jonathan Copus (Chief Financial Officer)
 Craig Baxter (Head of Investor Relations and Corporate Affairs)

 Teneo                                                            Tel: +44 (0)20 7353 4200
 Martin Robinson
 Harry Cameron

 

Notes to editors

ENQUEST

EnQuest is unlocking value from energy assets. Responsibly. As an independent
energy company with operations in the UK North Sea and across South East Asia,
the Group's strategic vision is to lead as a safe, efficient operator of
mature and underinvested oil and gas assets; sustainably extending field lives
and delivering superior value across the asset lifecycle, as part of a just
energy transition.

EnQuest PLC trades on the London Stock Exchange.

Please visit our website www.enquest.com (http://www.enquest.com) for more
information on our global operations.

Forward-looking statements: This announcement may contain certain
forward-looking statements with respect to EnQuest's expectations and plans,
strategy, management's objectives, future performance, production, reserves,
costs, revenues and other trend information. These statements and forecasts
involve risk and uncertainty because they relate to events and depend upon
circumstances that may occur in the future. There are a number of factors
which could cause actual results or developments to differ materially from
those expressed or implied by these forward-looking statements and forecasts.
The statements have been made with reference to forecast price changes,
economic conditions and the current regulatory environment. Nothing in this
announcement should be construed as a profit forecast. Past share performance
cannot be relied upon as a guide to future performance.

 

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