EnQuest PLC, 18 May 2023

EnQuest PLC awarded offer of carbon storage licences

EnQuest is pleased to announce that it has successfully secured the offer of carbon storage licences as part of the first round of UK carbon sequestration licences issued by the North Sea Transition Authority ('NSTA').

The successful licence offers are within application areas known as Northern North Sea 1 and Northern North Sea 2. These are some 99 miles northeast of Shetland and include fields currently operated by EnQuest, the Magnus and Thistle fields, as well as the non-operated Tern and Eider fields. These sites are large, well characterised deep storage formations connected by significant existing infrastructure to the Sullom Voe Terminal ('SVT') in Shetland. EnQuest plans to have carbon dioxide ('CO₂') shipped to SVT in liquid form and then utilise the existing jetties at the terminal before being transported via the existing East of Shetland pipeline for injection and permanent storage offshore. The flexibility afforded by a shipped solution for carbon storage is expected to enable a service to be provided to isolated emitter clusters in the UK, Europe and further afield who may not otherwise be able to access storage infrastructure.

Commenting on the offer, EnQuest Chief Financial Officer, Salman Malik said: "We are delighted to have successfully secured the offer of licences to develop our carbon storage business in the North Sea, utilising the Sullom Voe Terminal in Shetland. EnQuest has plans to develop a low-cost carbon megastore that will initially be capable of storing 10 million tonnes of CO₂ a year. Our vision is that geological formations in this area will ultimately be capable of permanently storing more than one billion tonnes of CO₂. With our comprehensive operational knowledge of the North Sea and our extensive infrastructure operations, EnQuest is uniquely placed to maximise the potential of these geological reservoirs as cost-effective and efficient carbon stores, servicing emitters from Scotland, the rest of the UK, Europe and beyond."

EnQuest Chief Executive Officer, Amjad Bseisu added: "Our initiative presents a significant opportunity to transition oil and gas skillsets, leveraging EnQuest's core capabilities and assets to deliver a just transition for the sector including new economic opportunities backed by education and skills training. As we build a low-carbon, sustainable economy essential for the well-being of future generations. EnQuest's carbon storage proposition provides a vital service for areas where liquid CO₂ is the solution, helping EnQuest go beyond zero in terms of its carbon footprint and helping the UK and Scotland achieve their national net zero targets.  EnQuest also remains committed to reducing its own carbon footprint."

The infrastructure that EnQuest operates at SVT includes four existing jetties which can accommodate large vessels in a natural deep-water port with a 24m draught. SVT is a 1,000-acre brownfield COMAH site which provides ample space for the development of the facilities required for a carbon storage hub. The Group operates the 200km East of Shetland pipeline ('EOSPS') network which runs out to its Magnus asset in the northern North Sea. EnQuest is committed to leveraging its extensive subsurface and projects capability as well as its extensive drilling and engineering knowledge of the infrastructure it owns and operates in Shetland and the North Sea to deliver this substantial project.

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Notes to editors

This announcement has been determined to contain inside information. The person responsible for the release of this announcement is Chris Sawyer, General Counsel and Company Secretary.

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 both the London Stock Exchange and the NASDAQ OMX Stockholm.

Please visit our website www.enquest.com for more information on our global operations.