REG - EnQuest PLC - 2023 Payments to Government Report

EnquestAnnouncement

13/06/2024 09:00

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RNS Number : 2118S  EnQuest PLC  13 June 2024

 

 

 
ENQUEST PLC, 13 June 2024

 

                 Reports on Payments to Governments for the
Year ended 31 December 2023

 

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
2023 and in compliance with the Reports on Payments to Governments Regulations
2014 (SI 2014/3209).

 

This report is available to download from:
https://www.enquest.com/environmental-social-and-governance/governance/business-conduct
(https://www.enquest.com/environmental-social-and-governance/governance/business-conduct)
.  This report will also be made available on the National Storage Mechanism.

 

Basis of preparation

The payments disclosed, which are on a cash basis, are based on where the
obligation for the payment arose (i.e. at a project or corporate level). Where
a payment or a series of related payments do not exceed £86,000, they are not
required to be disclosed under the UK Regulations, however this has been
disclosed in aggregate at a corporate level for clarity over obligations

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,
research CESS and education commitment payments which are paid to PETRONAS
(Petroliam Nasional Berhad, the National Oil Company of Malaysia).

 Project/entity name        Licence                      Production entitlements     Taxes   Royalties  Licence fees                    Research CESS  Supplementary payments  TOTAL
                                                         mboe          $'000         $'000   $'000      $'000                           $'000          $'000                   $'000
 Kraken & Kraken North      P1077                        -             -             -       -                        555               -              -                                     555
 Heather & Broom            P242 & P902                  -             -             -       -                                          -              -

                                                                                                        191                                                                    191
 Greater Kittiwake Area     P73 & P238                   -             -             -       -                        189               -              -                                     189
 Scolty & Crathes           P1107 & P1617                -             -             -       -                        487               -              -                                     487
 Magnus                     P193 & P2599                 -             -             -       -          374                             -              -                       374
 Bressay                    P234, P493, P920 & P977      -             -             -       -          428                             -              -                       428
 Bentley                    P1078                        -             -             -       -          659                             -              -                        659
 Corporate                                               -             -             21,942  -          202                             -              -                        22,144
 Total United Kingdom                                    -             -             21,942  -          3,085                           -              -                       25,027
 PM-8E                                                    794          60,621        -       1,272      -                               691            9,926                   72,510
 Corporate                                               -             -             18,163  -          -                               -              -                       18,163
 Total Malaysia                                          794           60,621        18,163  1,272      -                               691            9,926                   90,673
 Total Group                                             794           60,621        40,105  1,272      3,085                           691            9,926                   115,700

 

 Project/entity name                            Production entitlements     Taxes   Royalties  Licence fees  Research CESS  Supplementary payments  TOTAL

 Licence
                                                mboe          $'000         $'000   $'000      $'000         $'000          $'000                   $'000
 HM Revenue and Customs                         -             -             21,942  -          -             -              -                       21,942
 North Sea Transition Authority                 -             -             -       -          2,828         -              -                       2,828
 Department for Energy Security & Net Zero      -             -             -       -          257           -              -                       257
 Total United Kingdom                           -             -             21,942  -          3,085         -              -                       25,027
 PETRONAS                                        794          60,621        -       1,272      -              691            9,926                  72,510
 Malaysian Inland Revenue Board                 -             -             18,163  -          -             -              -                       18,163
 Total Malaysia                                  794          60,621        18,163  1,272      -              691            9,926                  90,673
 Total Group                                     794          60,621        40,105  1,272      3,085         691            9,926                   115,700

 

Production entitlements expressed in barrels

This includes non-cash royalties and state non-participating interest 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. It does not include the Government's or National Oil
Company's working interest share of production in a licence. Production
entitlements are assessed on a quarterly basis and are valued at the price
used to determine entitlement under the terms of the production sharing
contract.

Taxes

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.

Royalties

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
EnQuest's Production Sharing Contracts ('PSC') 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 levies or 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 if applicable).

Research CESS

Research CESS payments are contractual amounts due under the PM-8E PSC and are
based on EnQuest's entitlement to production. These payments are made to
PETRONAS.

Supplementary payments

Supplementary payments are required under the PM-8E PSC and are based on
EnQuest's entitlement to profit oil and profit gas. These payments are made to
PETRONAS.

 

Ends

 

 

 

 

 

For further information please contact:

 

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

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

 

Notes to editors

 

ENQUEST

EnQuest is providing creative solutions through the energy transition. As an
independent energy company with operations in the UK North Sea and Malaysia,
the Group's strategic vision is to be the partner of choice for the
responsible management of existing energy assets, applying its core
capabilities to create value through the 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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