The proposed deal brings EnQuest’s total interest in Kraken to 60%.

As per the deal, EnQuest proposes to pay First Oil between $90m and $144m million by way of a development carry in relation to the latter’s remaining 15% interest in Kraken.

EnQuest said the amount payable would dependent on a future determination of the gross 2P reserves in Kraken located in the East Shetland basin, to the west of the North Viking Graben.

If the reserves are less than or equal to 100 million barrels of oil equivalent, EnQuest will pay $90m and for less than 166 MMboe, but more than 100 MMboe, then the amount will be increased by a further $54m.

EnQuest will pay the maximum of $144m, when reserves are greater than 166 MMboe.

Under the existing deal, EnQuest also acquires a 15% interest in blocks 9/6a and 9/7b, for no additional consideration.

EnQuest stated its deal with First Oil is a similar arrangement to the company’s previous acquisition of 25% of Kraken from Nautical Petroleum.