Report on Payments to Govts



                                                ENQUEST PLC, 30 JUNE 2016 

                        Reports on Payments to Governments for the Year ended 31 December 2015 

This report provides information in accordance with DTR 4.3A in respect of payments made by the Company to governments for the year ended 31 December 2015 and in compliance with the Reports on Payments to Governments Regulations 2014 (SI 2014/3209). 

This report is available to download from: 

Basis of preparation 

The payments disclosed, which are on a cash basis, are based on where the obligation for the payment arose (ie at a project or corporate level).  However, where a payment or a series of related payments do not exceed £86,000, they are disclosed at a corporate level, in accordance with the UK Regulations. 

All of the payments disclosed in accordance with the Directive have been made to national governments, either directly or through a Ministry or Department of the national government, with the exception of the Malaysian payments in respect of production entitlements, supplementary payments, royalties and education commitment payments which are paid to PETRONAS (Petroliam Nasional Berhad, the National Oil Company of Malaysia). 

By   Licence 
  Project   / Entity Name      Licence    Production Entitlement    Production Entitlement      Taxes      Royalties    Licence Fees  Education Commit-ment Payments    Supple-mentary Payments      Total 
bbls(000)  $000  $000  $000  $000  $000  $000  $000 
  Kraken & Kraken North      P1077      -      -      -      -      498      -      -      498 
  Alma & Galia     P1765   & P1825    -    -    -    -    150    -    -    150 
  Kittiwake    P351   &P2173    -    -    -    -    884    -    -    884 
  Alba    P213    -    -    (4,540)    -    -    -    -    (4,540) 
  Kildrummy  P220,   P250 &P585    -    -    -    -    149    -    -    149 
  Corporate    -    -    720    -    1,850    -    -    2,570 
Total United Kingdom      -      -      (3,820)      -      3,531      -      -      (289) 
    PM8  PM8   Extension PSC      997      47,492      -      1,300      -      -      8,175      56,967 
  Tanjong Baram  Tanjong   Baram RSC      -      -      -      -      -      100      -      100 
  Corporate    -    -    7,766    -    -    -    -    7,766 
Total Malaysia    997    47,492    7,766    1,300    -    100    8,175    64,833 
  Corporate    -    -    (2,924)    -    -    -    -    (2,924) 
Total Norway    -    -    (2,924)    -  -    -    -    (2,924) 
  Total Group      997      47,492      1,022      1,300      3,531      100      8,175      61,620 
By   Government 
    Government    Production    Entitlements    Production Entitlements      Taxes      Royalties    Licence    Fees  Educational   Commitment Payment  Supple-mentary   Payments      Total 
bbls   (000)  $000  $000  $000  $000  $000  $000  $000 
HM Revenue and Customs     -    -    (3,820)    -    -    -    -    (3,820) 
Department of Energy and Trade      -      -      -      -      3,531      -      -      3,531 
  Total United Kingdom      -      -      (3,820)      -      3,531      -      -      (289) 
    PETRONAS       997      47,492      -      1,300      -      100      8,175      57,067 
Malaysian Inland Revenue Board        -        -        7,766        -        -        -        -        7,766 
  Total Malaysia      997      47,492      7,766      1,300      -      100      8,175      64,833 
  Skatteetaten     -    -    (2,924)    -    -    -    -    (2,924) 
  Total Norway    -    -    (2,924)    -    -    -    -    (2,924) 
  Total Group    997    47,492    1,022    1,300    3,531    100    8,175    61,620 

Production entitlements 

This includes non-cash royalties and amounts paid in barrels of oil or gas out of EnQuest's working interest share of production in a licence.  The figures disclosed are produced on an entitlement basis rather than a liftings basis, and are valued at the actual price used to determine entitlement.  They do not include the Government's or National Oil Company's working interest share of production in a licence.   


This represents cash tax calculated on the basis of profits including income or capital gains.  Income taxes are usually reflected in corporate income tax returns.  The cash payment of income taxes occurs in the year in which the tax has arisen or up to one year later.  Income taxes also include any cash tax rebates received from the government or revenue authority during the year and excludes  fines and penalties.  In the UK, taxes also include Petroleum Revenue Tax.  The above cash tax paid figure differs to the amount disclosed in the 2015 Annual Report as it does not include payments made to a previous owner of a Group subsidiary for group relief. 


This represents cash royalties paid to governments during the year for the extraction of oil or gas.  The terms of the royalties are described within our host government contracts and can vary from project to project within one country.  Royalties paid in kind have been recognised within the production entitlements category.   

Licence fees 

This represents total, rather than working interest share of, licence fees, rental fees, entry fees and other consideration for licences and/or concessions paid for access to an area during the year (with the exception of signature bonuses which are captured within bonus payments). 

Education commitment payment 

This represents the annual education contribution paid to PETRONAS pursuant to the Tanjong Baram Risk Service Contract. 

Supplementary payments 

Supplementary payments are required under the PM8 Production Sharing Contact and are based on EnQuest's entitlement to profit oil.  These payments are made to PETRONAS. 

Bonus payments and dividends 

There were no bonus or dividend payments during the year. 




For further information please contact: 

EnQuest PLC                                                                       Tel: +44 (0)20 7925 4900 

Amjad Bseisu (Chief Executive)  
Jonathan Swinney (Chief Financial Officer)   
Michael Waring (Head of Communications & Investor Relations)                                                                     

Tulchan Communications                                                  Tel: +44 (0)20 7353 4200 
Martin Robinson             
Martin Pengelley 

Notes to editors 

EnQuest is the largest UK independent producer in the UK North Sea.  EnQuest PLC trades on both the London Stock Exchange and the NASDAQ OMX Stockholm. Its operated assets include the Thistle/Deveron, Heather/ Broom, Dons area, the Greater Kittiwake Area and Alma/Galia, also the Kraken and the Scolty/Crathes developments; EnQuest also has an interest in the non-operated Alba producing oil field.  At the start of 2016, EnQuest had interests in 30 UK production licences, covering 42 blocks or part blocks and was the operator of 25 of these licences.   

 EnQuest believes that the UKCS represents a significant hydrocarbon basin, which continues to benefit from an extensive installed infrastructure base and skilled labour.  EnQuest believes that its assets offer material organic growth opportunities, driven by exploitation of current infrastructure on the UKCS and the development of low risk near field opportunities.  

EnQuest is replicating its model in the UKCS by targeting previously underdeveloped assets in a small number of other maturing regions; complementing its operations and utilising its deep skills in the UK North Sea.  In which context, EnQuest has interests in Malaysia where its operated assets include the PM8/Seligi Production Sharing Contract and the Tanjong Baram Risk Services Contract.  

Forward looking statements: This announcement may contain certain forward-looking statements with respect to EnQuest's expectation 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 presentation should be construed as a profit forecast.  Past share performance cannot be relied on as a guide to future performance. 



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