Operational excellence,
sustainable value
EnQuest PLC
Annual Report and
Accounts 2025
EnQuest is an oil and gas company
where unlocking value is at the
heart of everything we do.
We are a leader in late life energy
asset management – optimising
oil and gas fields, demonstrating
decommissioning expertise,
repurposing existing infrastructure
and fuelling the energy transition
through decarbonisation and
renewable energy projects.
This is transition in action.
To find out more, visit the
EnQuest website.
www.enquest.com/investors
Strategic
Report
Corporate
Governance
Financial
Statements
4
Highlights
5
Key performance indicators
8
At a glance
10
Chairman’s statement
12
Market overview
14
Chief Executive’s report
18
Our strengths
20 Our strategy
22 Operational review
34
Oil and gas reserves and
resources
35 Hydrocarbon assets
36 Financial review
42
Group non-financial and
sustainability information
statement
44 Environmental, Social
and Governance
48 Environmental
56 Social
62
Governance: Risks and
uncertainties
75 Governance: Business
conduct
76
Governance: Task Force on
Climate-related Financial
Disclosures
86 Governance: Stakeholder
engagement
127
Statement of Directors’
responsibilities for the
Group financial statements
128 Independent auditor’s report
to the members of
EnQuest PLC
140 Group Income Statement
141 Group Balance Sheet
142 Group Statement of
Changes in Equity
143 Group Statement of
Cash Flows
144 Notes to the Group
Financial Statements
184 Statement of Directors’
Responsibilities for the
Parent Company Financial
Statements
185 Company Balance Sheet
186 Company Statement of
Changes in Equity
187 Notes to the Financial
Statements
192 Glossary – Non-GAAP
Measures
196 Company information
90 Executive Committee
92
Board of Directors
94 Chairman’s letter
96 Corporate governance
statement
100 Governance and Nomination
Committee report
103 Audit Committee report
110 Directors’ Remuneration
Report
120 Sustainability and Risk
Committee report
122 Directors’ report
What’s inside
Page
127–195
Page
90–126
Page
2–89
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
01
An independent
energy
company, demonstrating
expertise across the
transition lifecycle
Strategic Report
Who we are and what we do
02
Repurposing existing
infrastructure to deliver new
energy and decarbonisation
opportunities at scale
01
Managing assets to optimise
and grow production while
exercising cost control and
capital discipline
03
Safely and efficiently
executing decommissioning
activities
04
Managing our Balance Sheet
while pursuing selective,
capability-led and value-
accretive acquisitions
Our strategic
focus
Our
purpose
Unlocking value from
energy assets. Responsibly.
Our
strategic
vision
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.
Our
values
SAFE Results
Working Collaboratively
Respect & Openness
Growth & Learning
Driving a Focused Business
Read more page
20
Foundation
set for growth
Deliver organic
growth
Fast payback infill drilling
across core portfolio
Focus on
unlocking upside
e.g. Kraken EOR project,
Magnus optimisation, Seligi gas expansion, Vietnam prospectivity
Convert 2C resources
at Bressay and Bentley
Transformative
acquisitions
Prioritise North Sea transaction,
accelerate utilisation
of UK tax asset
Leveraging different operational capabilities
to drive
asset optimisation
Cash flow to fund
shareholder returns
and
international growth
International
diversification
South East Asia footprint expanding,
delivering diversification
Extensive opportunity hopper
across this growth region
Increase gas component
of portfolio commodity mix
Reduce emission
intensity
Target
gas
and
lower-emission barrels
Execute
decarbonisation projects
across existing infrastructure
Carbon emissions factored into
acquisition decisions
02–03
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
1
3
1
3
1
4
1
1
1
3
4
1
3
2
Balance sheet strength provides
foundation for growth
Strategic Report
Highlights
Strong operational performance,
focused cost control and capital
discipline underpinned EnQuest’s
delivery against 2025 targets.
During the year, EnQuest signed a new
six-year Reserve Based Lending (‘RBL’)
facility totalling $800.0 million.
Supported by eight leading
international banks, including long-
standing existing lenders and high-
quality new relationships, the new RBL
provides significant transactional
capacity (via the $400.0 million loan
tranche) and simplifies management
of UK North Sea decommissioning
security (via the $400.0 million letter of
credit tranche). An accordion of up to
$800.0 million provides the potential to
increase each tranche by up to
$400.0 million.
The new RBL enhanced the Group’s
cash and available facilities to
$678.6 million at 31 December 2025.
Production in the year increased by
5.4% versus 2024, reflecting top quartile
production uptime across the portfolio
and the incremental volumes from the
Group’s Vietnam acquisition. On a pro
forma basis, Group production of
45,606 Boepd exceeded the top end of
its 40-45 Kboed guidance range,
despite the impact of a third-party
infrastructure outage at Magnus.
The Group’s adjusted EBITDA decreased
25.2% to $503.8 million, reflecting the
impact on oil revenue of lower oil prices.
Profit after tax was $1.6 million, while the
Group reported basic earnings per
share of 0.1 cents (2024: 5.0 cents),
primarily reflecting an effective tax rate
of 99.7% (2024: 43.7%) in the year.
The Group’s robust balance sheet and
transaction-ready liquidity position
mean EnQuest is well placed to pursue
growth opportunities and return capital
to shareholders, with a final 2025
dividend of 0.801 pence per share
proposed (equivalent to c.$20.0 million).
Notes above
1
See reconciliation of alternative performance
measures within the ‘Glossary – Non-GAAP
measures’ starting on page 192
Notes opposite
1
Lost Time Incident frequency represents the
number of incidents per million exposure hours
worked (based on 12 hours for offshore and eight
hours for onshore)
2
See reconciliation of alternative performance
measures within the ‘Glossary – Non-GAAP
measures’ starting on page 192
Commodity prices
Average Brent oil price
$/bbl
Average day-ahead gas price
GBp/therm
68.2
-15.3%
2024: 80.5
88.3
+5.6%
2024: 83.6
Alternative performance measures
Operating costs
$ million
Adjusted EBITDA
$ million
394.0
+2.9%
2024: 382.8
503.8
-25.2%
2024: 673.9
Adjusted free cash flow
$ million
8.7
-83.6%
2024: 53.2
Statutory performance measures
Revenue and other operating income
$ million
Profit/(loss) before tax
$ million
1,118.3
-5.3%
2024: 1,180.7
493.4
+196.2%
2024: 166.6
Basic earnings/(loss) per share
cents
Net cash flows from operating activities
$ million
0.1
-98.0%
2024: 5.0
362.7
-28.5%
2024: 507.6
Net assets/(liabilities)
$ million
528.1
-2.7%
2024: 542.5
Read more in the Financial
review see
Page 36
A
HSEA
Group Lost Time Incident
frequency rate
1
B
Net production
Boepd
-55.5
%
+5.4
%
2025
2024
2023
0.69
1.55
0.52
2025
2024
2023
42,945
40,736
43,812
2025 performance improved significantly
versus 2024 with respect to Lost Time
Incident (‘LTI’) performance, but the
Group was disappointed to see LTIs
during the year. EnQuest returned to
the upper quartile for this metric (UK
average 1.1) and continues to work
closely with contractors to ensure that
everyone working at its sites is aligned
with EnQuest’s commitment to safety.
The increase in production was primarily
driven by strong production efficiencies,
the efficient execution of well work
activities at Magnus and PM8/Seligi,
and the incremental volumes added
by the Group’s Vietnam acquisition. On
a pro forma basis, Group production of
45,606 Boepd exceeded its guidance
range of 40-45 Kboed, despite the
impact of a five-week third-party
infrastructure outage at Magnus.
C
Unit opex
2
$/Boe
D
Cash generated
from operations
$ million
E
Cash capital and
decommissioning
expense
2
$ million
-2.0
%
-27.4
%
-24.7
%
2025
2024
2023
25.1
25.6
21.7
2025
2024
2023
497.8
685.9
854.7
2025
2024
2023
236.0
313.4
211.1
Cost control, the impact of the
Group’s active foreign exchange
hedging performance and higher
production volumes drove a reduction
in average unit operating costs.
Lower cash generated from operations
primarily reflected the reduction in oil
prices which impacted oil revenues.
Reduced cash capital and
decommissioning expense reflected
drilling and well work costs at Magnus and
PM8/Seligi, the culmination of well plugging
and abandonment decommissioning
activities at Thistle and Heather, alongside
the Heather topsides heavy lift.
F
EnQuest net debt
2
$ million
G
Net 2P reserves
MMboe
H
Scope 1 and 2
emissions
tCO
2
e
+12.5
%
-3.6
%
0.0
%
2025
2024
2023
433.9
385.8
480.9
2025
2024
2023
163
169
175
2025
2024
2023
1,068.4
1,068.4
1,041.9
Adjusted free cash flow generation of
$8.7 million was offset by payments
of: $20.3 million related to the Vietnam
acquisition; $17.8 million in RBL refinancing
fees; and the Group’s maiden dividend
of $15.3 million, paid in June 2025.
During 2025, the Group produced
c.14 MMboe of its year-end 2024 2P
reserves base, partially offset by the
recognition of Vietnam volumes.
EnQuest has reduced its operated
Scope 1 and Scope 2 emissions by 26.4%
against a normalised 2020 baseline. 2025
emissions are in line with 2024, despite
the addition of c.80 ktCO
2
e associated
with the Group’s Vietnam acquisition.
Strategic Report
Key Performance indicators
Our strategic focus
1
Managing assets to optimise and
grow production while exercising cost
control and capital discipline
2
Repurposing existing infrastructure
to deliver new energy and
decarbonisation opportunities
at scale
3
Safely and efficiently executing
decommissioning activities
4
Managing our Balance Sheet while
pursuing selective, capability-led
and value-accretive acquisitions
04–05
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Upstream
Group production operations
Core production assets in the UK North Sea,
Malaysia and Vietnam continue to deliver
high production efficiency and strong
reservoir management, focused on
resource development.
EnQuest has a track record of late-life asset
expertise, extending the economic lives of all
assets it has operated.
Read more on
Page 22
An independent energy company,
demonstrating expertise across
the transition lifecycle
Strategic Report
At a glance
Decommissioning
Decommissioning expertise
EnQuest continues to demonstrate sector-leading
decommissioning capability, both in the UK North Sea
and in Malaysia.
In 2025, EnQuest won the Offshore Energies UK
‘Excellence in Decommissioning Award’, becoming the
first company to receive this prestigious accolade twice.
Read more on
Page 28
Midstream &
Veri Energy
As operator of the Sullom Voe Terminal (‘SVT’)
on Shetland, EnQuest is delivering exceptional
service availability to oil and gas producers
to the East and West of Shetland, while right-
sizing the terminal for future operations.
Veri Energy, EnQuest’s wholly owned
subsidiary,
is progressing cost-effective plans to
repurpose the terminal site and connected
offshore infrastructure to create a renewable
energy and decarbonisation hub at SVT.
Read more on
Page 30
06–07
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
We focus on mature assets, responsibly
optimising production to aid energy
security and create value.
Where we can,
we repurpose infrastructure to deliver
renewable energy and decarbonisation
projects before executing world-class
decommissioning.
Strategic Report
At a glance
How and where
we operate
4
UK Production Hubs
4
South East Asian
country operations
1
Onshore
Processing
Terminal
4
Decommissioning
Assets
45,606
163
(MMboe)
2P Reserves
452
(MMboe)
2C Reserves
97
%
Operated
2P
1.4
x
RRR
Since IPO
Pro forma Group
production (Boepd)
Alma/Galia
Scolty/Crathes
Aberdeen
Alba
Greater Kittiwake Area
Kraken
Magnus
Heather/Broom
Sullom Voe
Terminal
Thistle/
Deveron
Dons
South East Asia
UK North Sea
PM8/Seligi
DEWA
Kuala
Lumpur
Undeveloped
offshore licence
Producing asset
Carbon storage
- 10 million tonnes per
annum
4 Deep water jetties
- 24 metre draught
Renewable
energy hub
E-Fuel production
Sullom Voe Terminal,
Shetland Islands
Upstream
Midstream
Decommissioning
Golden Eagle
Vietnam
Malaysia
Chim Sáo/Dua
Bressay
Bentley
Indonesia
Brunei
“Our growth strategy is
underpinned by the belief that
we can deploy our expertise to
create value across the asset
life cycle.”
Gaea II
Gaea
08–09
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Overview
During 2025, the Group continued to
demonstrate the differentiated
operating capability that underpins
EnQuest’s business model. By applying
our core technical, operational and
commercial expertise across the
upstream asset life cycle, we continue
to create value from mature assets and
deliver resilient, consistent performance
across the portfolio. This operational
excellence provides a strong platform
for the Group’s growth ambitions in the
UK and supports our plans to deploy
our capabilities on new projects across
South East Asia.
In South East Asia, our reputation as a
top-tier operator is built on more than a
decade of successful operations in
Malaysia. In 2025, EnQuest was proud to
again be named Malaysia Upstream
Operator of the Year by PETRONAS,
becoming the first company to win this
prestigious accolade in successive
years. Our commitment to the region
was further enhanced during the year
by the award of the Block C PSC in
Brunei, and the significant exploration
blocks at Gaea and Gaea II in
Indonesia. Our successful entry into
Vietnam through the Block 12W
acquisition has already been rewarded
with an extension of the PSC, further
demonstrating our disciplined
approach to deploying capital
where we see the most attractive
long-term returns.
While the UK fiscal regime continues to
present challenges for all North Sea
operators, we welcome the Chancellor
of the Exchequer’s commitment to
accelerate the implementation of the
Oil and Gas Price Mechanism, a fair and
reasonable windfall tax that replaces
the unfit-for-purpose Energy Profits Levy.
Once enacted, this change will return
the UK North Sea to global
competitiveness and, more importantly,
will take a step toward protecting the
vital jobs, skills and expertise that have
been forged over five decades of North
Sea operations.
EnQuest’s long-standing commitment
to cost discipline and prudent capital
allocation has ensured that our
financial performance remains robust.
Following continued investment in
fast-payback projects and the
successful enhancement of our
Reserve Based Lending facility, the
Group has delivered shareholder
returns, strengthened the balance
sheet and enhanced financial flexibility.
We enter the next phase of our growth
strategy with significant transaction-
ready liquidity available to support
further expansion.
We remain clear in our ambition to
pursue transformational growth
through acquisition in the UK. The
Energy Profits Levy has, of course,
constrained investment across the
sector, but EnQuest’s substantial tax
asset and our expertise in managing
mature fields provide a clear
advantage versus many of our peers.
This differentiated position allows value
to be created through the transfer of
assets into our ownership. I believe
EnQuest is well positioned to play a
leading role as a North Sea
consolidator, and I am confident there
will be further opportunities to add
material production and cash flow to
the portfolio as other operators
continue to reposition their investments
away from the basin.
We have also proven our ability to
generate significant value from our
current assets, most recently through
the settlement of the Magnus
contingent consideration. This credit-
enhancing transaction removes a
material liability from our balance
sheet, simplifies our working capital
management, and provides the Group
with full access to the future cash
generation from this core asset.
Upstream activity fuels the Just
Energy Transition
As a true transition operator, EnQuest
recognises that the value generated
by our Upstream business remains
fundamental, both in terms of our
cash generation and in sustaining the
skills, knowledge and technical
expertise essential to delivering the
energy transition.
This focus also extends to
decommissioning, where EnQuest
continues to demonstrate sector-
leading capability. The Group has
established itself as the most prolific
and cost effective well plugging and
abandonment operator in the North
Sea, and decommissioning is
becoming an increasingly important
part of the capability mix required of
basin operators. This expertise also
represents an important enabler in
merger and acquisition discussions as
the basin continues to evolve.
At the same time, we are progressing a
number of decarbonisation initiatives
across our production assets and at
the Sullom Voe Terminal (‘SVT’) on
Shetland. These projects reflect the
Group’s commitment to internal and
external emission reduction targets and
our ambition to achieve net zero Scope
1 and Scope 2 emissions by 2040.
Through Veri Energy, our wholly owned
energy transition subsidiary, we
continue to develop credible and
potentially material new energy
opportunities, many of which leverage
the repurposing of existing
infrastructure at SVT, a site that we
believe represents a microcosm of the
UK energy transition.
EnQuest’s approach reflects our belief
in a pragmatic and responsible
transition. Oil and gas will remain an
essential part of the global energy mix
for many years to come, even as
low-carbon solutions expand. Our role
is to deliver this energy safely, efficiently
and with a continually reducing
environmental footprint.
A just transition is not only about
technology; it is also about people. The
oil and gas sector supports around
200,000 jobs across the UK, and we
remain committed to ensuring that our
workforce has the skills and
opportunities needed to succeed in a
changing energy landscape. Through
investment in training, reskilling and the
development of our decarbonisation
and new energy projects, we are
preparing our people for the future
while creating opportunities in
emerging areas of the energy system.
We also continue to work closely with
communities, industry partners and
government to help ensure that the
transition supports economic growth
and long-term prosperity, particularly in
regions historically dependent on the
oil and gas sector. The expertise that
resides within today’s oil and gas
companies will be central to delivering
the energy transition, and our highly
skilled workforce remains one of
EnQuest’s greatest strengths.
Our commitment to environmental
stewardship continues to be
recognised externally. I was proud to
see EnQuest achieve the only ‘A-’ rating
awarded globally to an oil and gas
production company in the 2025 CDP
Climate Change Survey, placing the
Group as the sector leader in climate
disclosure and performance.
Leadership
Strong corporate governance remains
fundamental to EnQuest’s business
framework, supporting both effective
risk management and the Group’s Core
Values. The Board continues to focus on
succession planning to ensure that the
Group maintains the skills and
experience required to deliver its
evolving strategy.
Following the steps taken in 2024 to
refresh and align Director
competencies with strategic delivery, I
am delighted to lead a diverse and
highly capable Board in supporting
Amjad and his strong, experienced
executive team. Across the
organisation, including our new
colleagues in Vietnam, I continue to
be impressed by the depth of talent
within the Group and the shared
commitment to delivering EnQuest’s
strategic objectives.
Looking ahead
As we look forward, our focus remains
on delivering material value-accretive
growth in the UK while continuing to
diversify, both geographically and
through an evolving commodity mix, as
we expand our business across South
East Asia. We remain confident in the
resilience of our business model, the
expertise of our people and the
strength of our financial position.
The energy sector continues to evolve
rapidly, and EnQuest recognises the
importance of adapting to changing
market and societal expectations. At
the same time, we see significant
opportunities created by our
operational capabilities, financial
flexibility and differentiated tax position.
We will continue to advocate on behalf
of our sector and the many workers,
families and communities whose
livelihoods are connected to it. In the UK
particularly, policymakers have an
opportunity to recognise that energy
transitions take time and that a
pragmatic, well-managed transition
can support economic growth, energy
security and technological innovation.
I am proud of the way in which EnQuest
has worked to enhance the investment
environment, while pursuing
sustainable long-term growth. Guided
by our strategy of applying our core
capabilities to create value through the
energy transition, we believe the Group
is well positioned for the years ahead.
Gareth Penny
Chairman
“At EnQuest, we are committed to a
Just Energy Transition that supports
energy security, sustainability, and
economic growth.”
Gareth Penny
Chairman
Strategic Report
Chairman’s statement
Operational excellence,
disciplined investment and
strategic diversification
underpin sustainable growth.
Building
long-term
value
10–11
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Macroeconomic
uncertainty
UK oil and gas
fiscal regime
Responsible
and sustainable
operation
Climate change
and carbon
targets
The Just Energy
Transition (‘JET’)
Global markets impacted
by volatility of the geopolitical
environment. Global conflicts
and government policies
affecting supply/demand
dynamics.
The continued application of
the EPL has driven some
operators to shift focus away
from the UK North Sea, and
towards more supportive
geographies.
Key stakeholders are
increasingly demanding
responsible and ethical
working practices that drive
positive impacts for society
and manage risk.
Governments, regulators and
consumers are calling for the
reduction of carbon-related
emissions and net zero targets
are coming under scrutiny.
The JET has risen to
prominence, underscoring the
shift from fossil fuels to
renewables, prioritising equity
and support for impacted
people and communities.
Commodity prices remained
within a lower range, with 2025
recording the largest annual oil
price reduction since 2020.
With the year defined by the
continuing wars in Ukraine and
Gaza, and escalating tensions
across the Middle East, oil markets
remained volatile during 2025. As
OPEC+ supply discipline and
uncertainty over the pace of
global economic growth were
countered by concerns around
supply security and constrained
investment in mature basins,
periods of softer demand
expectations and macroeconomic
uncertainty contributed to
fluctuations in the market.
UK fiscal regime undermines
global competitiveness and
negatively impacts the
investment environment.
The prevailing Energy Profits Levy
(‘EPL’) on North Sea profits makes
the UK a fiscal outlier as the only
country still applying a windfall
tax on energy producers. The EPL
has resulted in a number of
industry participants
accelerating their shift in focus
away from the UK North Sea, with
some reducing investment and
others looking to depart the
UK entirely.
The Environmental, Social and
Governance (‘ESG’) landscape
is evolving and oil and gas
companies are expected to adopt
and maintain principles of
environmental stewardship,
resource efficiency, social
responsibility and community
engagement, and safety and
risk management.
Above all, transparency and
accountability are vital.
Within the oil and gas sector, a
credible transition plan is
effectively the licence to operate.
Companies will increasingly be
asked to explain how targets will
be met and emphasis will be
applied to reporting against
interim milestone targets.
Group Scope 1 and 2
emissions
-26%
2025
2020
1,068.4
1,452.7
The transition to just energy
introduces both challenges
and opportunities for the sector.
Companies that adapt to
changing market dynamics,
diversify their portfolios, and
embrace sustainable practices will
be better positioned to thrive in a
low-carbon future. Investors are
increasingly considering ESG
factors in their investment
decisions and companies will
face issues in attracting
investment if they are perceived
as being incompatible with
sustainability goals.
EnQuest hedges a significant
amount of its production in order
to protect against downside risk,
while retaining access to the
upside during periods of increased
commodity prices.
EnQuest remains committed
to growing its UK business,
underpinned by a differentiated
operating capability and the
Group’s historic tax asset. These
relative advantages provide a
strong foundation from which to
pursue value-accretive growth
through acquisition, as
demonstrated by continued
growth in South East Asia.
EnQuest maintains collaborative
relationships with major
shareholders, lenders and other
key stakeholders, regularly seeking
feedback on the Group’s
operational plans and ESG
performance. Demonstrating its
commitment to responsible and
sustainable operations, the Group
was awarded an ‘A-’ rating in the
2025 CDP Climate Change Survey.
EnQuest has a Board-approved
target to reach net zero in terms of
Scope 1 and Scope 2 emissions by
2040. The Group continued to
progress its credible transition
plan during 2025. The material
decarbonisation and renewable
energy opportunities at the Sullom
Voe Terminal add significant
credibility to the Group’s net
zero ambitions.
EnQuest recognises the evolving
energy landscape and is
committed to leading a Just
Energy Transition, ensuring that our
workers, the communities we
serve, and our stakeholders benefit
in the process.
Read more on
Page 22
Read more on
Page 22
Read more on
Page 44
Read more on
Page 48
Read more on
Page 56
Global trends
impacting our business
Strategic Report
Market overview
What does it
mean for our
industry?
How are we
responding?
In shaping our strategy
we consider a wide
range of issues,
assessing the potential
opportunities and
threats they pose
to our business.
Read more in the Operational
review see
Page 22
12–13
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Strategic Report
Chief Executive’s report
Combining operating performance, balance sheet
strength and transactional readiness to create value.
A year defined by operational
excellence, enhanced foundations
and strategic clarity
Against a backdrop of geopolitical
volatility, elevated commodity prices
and macroeconomic uncertainty,
EnQuest is focused on operational,
financial and commercial delivery to
maximise the value of our asset
portfolio, expand scale and diversify
our operations.
We are building on strong foundations.
In 2025, our operational and financial
performance was robust, and we
simplified and enhanced our
balance sheet.
At a time when the UK fiscal
regime remains challenging, we
also took decisive steps to
accelerate our diversification
into high-growth Asian markets.
Having accelerated the Seligi
1b gas project through
targeted investment, we are
now providing increased
volumes to support Peninsular
Malaysia demand, driving
Group production above
50,000 Boepd in March.
Accordingly, we have entered 2026
confident in our people, our
relationships and our assets, and with
enhanced financial strength. With cash
and undrawn facilities of $678.6 million,
we are well-positioned in both the UK
North Sea and South East Asia to deliver
both organic and acquisitional growth.
Delivering safe, reliable performance
across our portfolio
EnQuest delivered another impressive
operational year. Group production
exceeded the top end of our 40-45
Kboed pro forma guidance range at
45,606 Boepd, including the impact of
our Vietnam acquisition. Underpinned
by our operational expertise, Group
production efficiency remained high at
around 90%, and we continued to build
on our track record of extracting value
from late-life assets.
•
The
Kraken
field continued to
perform at the very top of the
production efficiency for floating
hubs, the FPSO’s 95% production
efficiency exceeding North Sea
average efficiency by c.28%.
•
Magnus
increased year-on-year
production by 8%, despite the impact
of a five-week third-party
infrastructure outage in the first half.
2025 uptime, excluding the third-
party outage, was 93%, and the asset
team completed a successful
two-infill well drilling campaign.
•
Settlement of the Magnus contingent
consideration mechanism
significantly enhances our balance
sheet and demonstrates our long-
term commitment to this core asset.
•
In
Malaysia
, we expanded production
by c.13%, with 93% production
efficiency, and the benefit of new infill
wells, idle well reinstatements and
strong domestic gas demand.
•
The nine-month acceleration of the
Seligi 1b gas project exemplified our
ability to enhance asset value, and
we have continued to action
modifications which further optimise
gas production potential. Thus far in
2026, we have regularly provided
more than 100 mmscf/d of gas to
support Peninsular Malaysian
demand, exceeding contractually
nominated volumes by c.40%.
•
With 452 MMboe of 2C resources in
place at 31 December 2025, we
continue to develop pathways to
mature contingent resources into the
2P category.
•
We successfully integrated our
Vietnam
acquisition and
immediately deployed our operating
expertise, proactively completing
three well workovers that enhanced
production in the second half of 2025.
•
EnQuest also continued to advance
its programme of decommissioning,
completing the well campaigns at
both Thistle and Heather, and
removing Heather’s topsides in a
single 15.3 kTonne lift.
I was proud that in 2025 EnQuest was
again named Malaysia Operator of the
Year by PETRONAS, becoming the first
operator to win this award in successive
years. In 2025, EnQuest also became
the first company to be awarded the
Offshore Energies UK ‘Excellence in
Decommissioning’ award twice.
These successes reflect a capability
we consider core to our identity and
how we create value: the ability to
operate complex assets efficiently,
safely and responsibly, through the full
asset lifecycle.
Strategic progress: diversifying the
portfolio and expanding our footprint
We also made significant strides in
broadening our geographic and
commodity exposure.
The accelerated expansion of our Seligi
gas agreement and new country
entries into Vietnam (through the Block
12W acquisition), Brunei Darussalam
(via the Block C PSC award), and
Indonesia (through the Gaea and Gaea
II exploration blocks), all advance our
strategy to develop a balanced
portfolio anchored in predictable, high
quality operations.
Post-year end, we received a Letter of
Award for a participating interest in the
Cendramas PSC, further demonstrating
our reputation as a highly respected
counterparty across the region.
These strategic steps underpin the
Group’s expectation that at least 35
Kboepd of net production will come
from South East Asia operations
by 2030.
Financial discipline enabling
shareholder returns and
future growth
Global macroeconomic conditions in
2025 were shaped by uncertainty
around US trade policy, risks to
economic growth and the likelihood of
excess crude supply. Brent crude prices
remained subdued throughout the
year, averaging in the mid $60s to low
$70s per barrel.
2025 revenue and other operating
income was c.5% lower year-on-year,
primarily driven by a 15% decrease in oil
prices, but EnQuest maintained stable
production costs and delivered
adjusted EBITDA of $503.8 million.
Post-tax profit of $1.6 million reflects the
sector-wide impact of the UK
government’s decision in 2024 to
extend the Energy Profits Levy (‘EPL’) by
two years to 31 March 2030. Stripping
this non-cash adjustment out, post-tax
profit was $125.5 million.
Our commitment to cost control,
efficiency and capital discipline meant
that the Group delivered on its cost
guidance, despite the pressures arising
from a material weakening in the US
Dollar. I was also pleased that in June
2025, EnQuest paid its first dividend,
returning $15.3 million to shareholders.
“In a volatile world, EnQuest stands out for
its consistent operational delivery, highly
tangible reserves base, disciplined
investment, and a strategy anchored in
diversified growth.”
Amjad Bseisu
Chief Executive
Production
Boepd
45,606
pro forma, including Vietnam
Group liquidity at
31 December 2025
$ million
678.6
Cash and available facilities
Delivering
operational
excellence
14–15
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
“We enter 2026
with momentum,
financial strength
and a clear
strategy to deliver
material, long-term
value for our
shareholders.”
50
40
30
20
10
0
2025
2027
EnQuest
2030
25%
10%
46%
50%
% reduction
In the fourth quarter of 2025, the Group
executed a refinancing of our Reserve
Based Lending (‘RBL’) facility,
establishing a six-year facility totalling
$800.0 million. Supported by eight
leading international banks, including
long-standing existing lenders and
high-quality new relationships, the new
RBL provides significant transactional
capacity via the $400.0 million loan
tranche and simplifies management of
UK North Sea decommissioning security
through the $400.0 million letter of
credit tranche. An accordion of up to
$800.0 million allows each tranche to
increase by up to $400.0 million.
This facility, and the broader credit
positioning of EnQuest, are further
enhanced by the recent settlement of
the Magnus contingent consideration.
The $60.0 million settlement removes a
$432.9 million liability from our balance
sheet, unlocking for EnQuest c.$777 million
in additional undiscounted forward
Magnus cash flow.
With greater financial flexibility and a
strengthened balance sheet, the Board
is pleased to propose a dividend of
0.8 pence per share for 2025.
Navigating a shifting geopolitical
landscape
Current geopolitical tensions underline
the continued reliance of the world
economy on hydrocarbons and the
strategic importance for countries to
have their own domestic oil and gas
supply, the current closure of the Strait of
Hormuz causing oil prices to spike above
$100/bbl for the first time since 2022.
The volatility of current conditions
reinforces the importance of EnQuest’s
focus on disciplined capital allocation,
operational excellence and continued
diversification of our portfolio. Our focus
remains on extracting value from our
core North Sea and South East Asian
assets while maintaining financial
resilience in a market characterised by
underlying modest demand growth and
elevated supply. This macroeconomic
environment underscores the strategic
importance of pursuing value-accretive
opportunities that strengthen
cash flow and support long-term
shareholder returns.
The UK remains a fiscal outlier among
nations by persisting in taxing windfall
profits, even when prices have been
below historic averages. This has
impacted confidence in the UK North
Sea, with operators cutting investment,
accelerating the cessation of
production on assets, and
consolidating activities in what they
consider to be a non-core region into
joint ventures.
Although the UK Government missed an
opportunity to stimulate sector
investment in its 2025 Autumn Budget
by continuing to apply the Energy Profit
Levy, the formulation of the Oil and Gas
Price Mechanism (‘OGPM’) as a
permanent, fit-for-purpose windfall tax
successor to EPL offers encouragement.
EnQuest sees the OGPM as a positive
development for the sector, balancing
increased taxation during periods of
elevated prices with an environment
that does not discourage investment.
EnQuest continues to advocate for the
accelerated introduction of the OGPM,
ahead of the current EPL sunset date of
31 March 2030.
The deployment of our operational
expertise and advantaged fiscal
position remain very relevant to the UK
North Sea, and we are confident they
provide a strong foundation from which
to consolidate value.
In Asia, the value proposition for
EnQuest is simple and clear. Every
country in which we operate is a growth
economy, and each is structurally short
energy. We are well respected in the
region, with a strong track record of
delivery. As we expand our operational
footprint and deploy our differentiated
capabilities, we stand ready to meet
the growing demands of the
economies and communities we serve.
Building a lower-carbon future while
maintaining safe operations
EnQuest is an expert in building value in
mature and underinvested oil and gas
assets, and we strongly believe that
everything we do directly contributes to
a just and economic transition to a
lower-carbon future.
We continue to make strong progress
against our environmental
commitments. Since the 2018 baseline
established by the NSTA’s North Sea
Transition Deal (‘NSTD’), we have
reduced our absolute UK Scope 1 and 2
emissions by more than 45%, providing
a strong foundation for our
commitment to reach net zero in Scope
1 and Scope 2 emissions by 2040. As a
result, we are tracking well ahead of
NSTD milestones, and are closing in on
the 2030 targeted reduction of 50%.
Work is ongoing to decarbonise existing
portfolio infrastructure, including the
project to reduce Kraken fuel and flare
through the development of the
Bressay gas cap, and two major
transformation projects at the Sullom
Voe Terminal, including the New
Stabilisation Facility and long-term
power solution, which together are
expected to reduce terminal emissions
by around 90%. We also remain the
Strategic Report
Chief Executive’s report
continued
most active decommissioning operator
in the UK North Sea, delivering safe and
efficient decommissioning across
multiple major projects. Importantly, we
continue to build this expertise while
the majority of the cost of these
activities is paid by the companies from
which we acquired our assets.
Under the management of Veri Energy,
a wholly owned subsidiary of EnQuest,
we are also supporting the UK’s
transition ambitions by progressing
several scalable renewable energy and
decarbonisation projects.
Our transition plan is credible, and I was
proud to see EnQuest awarded an A-
rating in the 2025 CDP Climate Change
Survey, reflecting the Group’s strong
governance, robust emissions
management, and clear, transparent
strategy to manage climate-related
risks and opportunities. EnQuest’s
A- was the single highest score
awarded globally within the oil and gas
extraction and production sector,
making EnQuest the only company in
this category to receive CDP’s
leadership-level recognition.
Safety remains our top priority and
licence to operate. I am pleased to say
that we saw a significant decrease in
Lost Time Incidents during 2025,
returning to a level that significantly
outperformed the North Sea average.
We are not complacent in this, however,
and we are reinforcing our expectations
with employees and contractors to
ensure that everyone working at an
EnQuest site is aligned with our
commitment to SAFE Results.
Looking ahead: a transformational
year for EnQuest
In 2026, our ambition is clear: maximise
the value of our existing assets,
continue our disciplined expansion in
South East Asia, and use our
advantaged UK tax position and
operating expertise to execute a
material UK North Sea transaction. We
expect that successful delivery against
these value-led targets will be
transformative, broadening our
production base, increasing cash flow
and enhancing shareholder returns.
Production to the end of February
averaged 32,429 Boepd, including the
deferral of c.650 kbbls of Magnus
production due to a third-party
infrastructure outage, caused by storm
damage. Since full production was
reinstated at Magnus, Group
production has consistently exceeded
50,000 Boepd, giving us confidence
that we will again deliver against our
annual targets.
To proactively address the risk of
third-party equipment downtime on
Magnus production, EnQuest is well
advanced with plans to bypass the
Ninian Central Platform during 2027,
securing Magnus’ offtake route into
the future.
EnQuest net debt
1
at
31 December 2025
$ million
433.9
2026 production guidance
Boepd
41,000 –
45,000
Our position as a top quartile
operator, combined with a
strengthened financial base
and an increasingly diversified
portfolio, sets the stage for a
pivotal period of growth.
Closing remarks
2025 showcased what EnQuest does
best: delivering top-quartile operations,
employing disciplined financial
management, and unlocking value. We
enter 2026 with momentum, financial
strength and a clear strategic direction.
I remain immensely proud of our
people, whose commitment and
expertise underpin every success.
As we pursue a material UK transaction
and continued international expansion,
we will remain guided by a single
priority: delivering long-term value for
our shareholders while playing a
responsible role in the evolving
energy landscape.
Amjad Bseisu
Chief Executive
1
See Glossary – Non-GAAP Measures on Page 192
North Sea Transition Deal
Progress against
milestone targets
Scope 1 and Scope 2 emissions versus
2018 baseline
EnQuest awarded A- rating in 2025
COP climate change survey
16–17
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Distinct skills
and capabilities
Industry-leading
sustainability
credentials,
with focus on
safety
Uniquely
positioned to
capitalise on
transition
projects
Differentiated UK
tax positioning
Track record
of delivering
accretive
acquisitions
Top quartile performance across
developments, wells, operations,
decommissioning and technical
support functions
Transferable capabilities that can
be deployed across all aspects of
the portfolio, different geographies
and decarbonisation and
renewable energy opportunities
Highly skilled, dedicated teams
with strong technical credentials
High level of control, with the
Group operating 97% of its
2P reserves
Board-supported commitment
to reach net zero with regard to
Scope 1 and Scope 2 emissions
by 2040; ten years ahead of UK
national target
UK Scope 1 and Scope 2 emissions
reduction of 45.6% versus 2018
baseline. EnQuest performance
tracking significantly ahead of
North Sea Transition Deal targets
A- rating in 2025 CDP Climate
Change Survey
Lost time incident frequency of
0.69 in 2025. UK average was 2.26
EnQuest has an exclusive right
to develop renewable energy and
decarbonisation projects at
Sullom Voe Terminal
Veri Energy, a wholly owned
EnQuest subsidiary, provides
dedicated management of
transition projects
EnQuest provides support
in a capital-light manner,
while enabling Veri Energy to
leverage support from financial
and strategic partnerships
EnQuest holds significant
recognised UK tax loss
position of c.$1.9 billion as at
31 December 2025
The continued application of the
UK Energy Profits Levy enhances
EnQuest’s relative tax advantage
versus full tax-paying peers
EnQuest plans to accelerate tax
loss benefit through acquisition
of value-accretive assets, with
immediate M&A focus in the UK
Since inception, EnQuest has
extended the economic lives
of all nine operated assets
Asset acquisitions have
typically achieved payback
within 12-18 months
Entrepreneurial, innovative
approach taken to structure past
deals with limited upfront
consideration and focus on value
$60.0 million Magnus contingent
consideration settlement removes
$432.9 million liability from Group
balance sheet
Average asset production
uptime during 2025
Reduction in UK Scope 1
and Scope 2 emissions
versus 2018 baseline
Total anticipated annual
carbon storage potential
from CCS project
Comparative cash flow
due to tax advantage
1
Life extension achieved at
Magnus, PM8/Seligi, GKA
and The Dons, following
acquisition
89
%
46
%
10
mpta
2.8
x
10
+yrs
Read more in the Operational
review on
Page 22
EnQuest is a top
quartile operator
through the lifecycle of
maturing hydrocarbon
assets, deploying its
differentiated
capabilities to deliver
value-led growth.
Strategic Report
Our strengths
How we are
differentiated
EnQuest is a top quartile
operator, primed for growth
1
Based on a full UK taxpayer retaining 22% post-tax
income vs EnQuest retaining 62% post-tax income
given CT/SCT tax loss position
18–19
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Key updates
for 2025
Strategic Report
Our strategy
“We are focussing on executing
transformative UK transactions, and
delivering further diversified growth
in South East Asia.”
Amjad Bseisu
Chief Executive
01
Upstream
Managing assets to optimise and
grow production while exercising
cost control and capital discipline
Read more in the Operational
review on
Page 22
Progress in 2025
Objectives for 2026
Production of 45,606
Boepd, including pro
forma Vietnam volumes
Top quartile production
efficiency delivered across
operated portfolio
Delivery of diversified growth
through expansion of Seligi
gas agreement and award
of DEWA Production Sharing
Contract award in Malaysia
Production guidance of
41,000 to 45,000 Boepd
Multi-well drilling and
wellwork programmes at
Magnus and at PM8/Seligi
Progress Kraken Enhanced
Oil Recovery project to
final investment decision
within 12 months
02
Midstream
Repurposing existing infrastructure
to deliver new energy and
decarbonisation opportunities
at scale
Read more in the Operational
review on
Page 30
Progress in 2025
Objectives for 2026
Midstream team progressing
two major infrastructure
projects at SVT
Together, these projects
are expected to reduce
terminal emissions by 90%
Veri Energy supporting the
UK Government’s Clean
Power 2030 Action Plan and
delivering against the Scottish
Government’s Energy Strategy
and Just Transition Plan
Complete New Stabilisation
Facility right-sizing project
Progress onshore wind project
to Final Investment Decision
Develop an advanced
operating model for future
e-fuel facilities, with support
from Aberdeen’s Net Zero
Technology Centre, through
its Energy Hubs project
03
Decommissioning
Safely and efficiently executing
decommissioning activities
Read more in the Operational
review on
Page 28
Progress in 2025
Objectives for 2026
Awarded 2025 Offshore
Energies UK ‘Excellence in
Decommissioning Award’;
becoming the first company to
receive this accolade twice
Completion of plug and
abandonment (‘P&A’) programmes
across Heather and Thistle projects
Sector-leading 84 wells
P&A’d since 2022
Successfully executed 15kT
lift of Heather topsides; the
heaviest North Sea lift of 2025
Disembark Thistle platform
ahead of topside removal
Execute P&A activity at the
Greater Kittiwake Area in parallel
with production operations
Continue planning for
subsea well P&A activity,
having signed multi-year rig
contract with Well-Safe
04
Financial
Enhancing balance sheet to
underpin pursuit of selective,
capability-led and
value-accretive acquisitions
Read more in the Operational
review on
Page 36
Progress in 2025
Objectives for 2026
Paid maiden dividend of
$15.3 million
Re-financing of reserve based
lending facility (‘RBL’) with
new $800.0 million facility
RBL includes accordion which
can increase facility by up
to a further $800.0 million
Settled Magnus contingent
consideration for $60.0 million,
removing $432.9 million
liability from balance sheet
Enhanced Group liquidity at 31
December 2025 of $678.6 million
Focus on executing
transformative UK
transaction, and delivering
further diversified growth
in South East Asia
Maintain balance sheet
strength through disciplined
capital allocation
Execute shareholder
return programme
20–21
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
2025
2024
2023
[•]
1.55
0.52
2025
2024
2023
[•]
1.55
0.52
Strategic Report
Operational review
Update on operations
Continued differentiated, top quartile
operating capability across
the asset lifecycle.
EnQuest continues to demonstrate its
differentiated operating capability,
founded on deep expertise in late-life
asset management and
complemented by sector-leading
decommissioning performance.
In all our activities, the safety and
well-being of those working across
EnQuest’s sites remains paramount.
All personnel are empowered to act
decisively to ensure the Group’s high
standards of safe operations are
consistently upheld.
The Group remains focused on
optimising the assets it operates and
has an established track record of
extending the productive life of mature
oil and gas fields. This is achieved
through disciplined maintenance
programmes, the effective
management of critical production
infrastructure, and the high-quality
execution of drilling and well
intervention activities.
In parallel, EnQuest continues to
progress initiatives to decarbonise its
portfolio. Projects at Magnus, Kraken
and the Sullom Voe Terminal (‘SVT’) are
aimed at materially reducing the
Group’s carbon footprint while
improving the long-term cost base of
our operations. These initiatives are an
important component in ensuring the
Group’s assets remain resilient and
competitive within an evolving
regulatory environment.
As part of maximising value from
operated assets, the Group recognises
the importance of planning and
executing safe, efficient and cost-
effective decommissioning, typically
beginning around five years ahead of
the cessation of asset production.
Decommissioning is an increasingly
important capability for operators in
mature basins worldwide, and one
in which EnQuest is demonstrating
sector leadership.
The operational excellence in evidence
across EnQuest’s portfolio is
transferable and scalable, supporting
the Group’s growth ambitions both in
the UK North Sea and across South East
Asia. It also underpins the Group’s plans
to right-size and repurpose existing
infrastructure, including the
development of SVT as a future
decarbonisation and renewable
energy hub.
2025 saw the Group deliver 89% production
efficiency across its operated portfolio.
Group operated production
efficiency
89%
Magnus production
efficiency
Kraken production efficiency
2018
2025
63%
95%
2017
2025
59%
81%
12%
2025 Group Production
(pro forma including
Vietnam)
Boepd
45,606
+12%
2024: 40,736
Operational
excellence
In delivering production
uptime of 89% across its
operated portfolio during 2025,
EnQuest achieved a level of
performance that sits at the
very top end of the UK North
Sea sector.
Excluding the impact of a third-party
infrastructure outage, which saw
Magnus production shut-in for five
weeks, Group production efficiency
was 92%.
The latest available benchmarked data
from the North Sea Transition Authority
(‘NSTA’) shows that production
efficiency across the UKCS is 75%.
EnQuest’s UK operated asset uptime
was 87%.
Further, the NSTA UKCS production
efficiency for floating hubs is 67%.
At 95% production efficiency, EnQuest’s
Kraken FPSO beats that by 28%.
This exemplary uptime performance
extends to the Group’s South East Asia
business, with 93% uptime at PM8/Seligi
and 100% uptime in Vietnam.
2024 UKCS average 75%
2024 UKCS floating hub average 67%
22–23
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Strategic Report
Operational review
continued
UK Upstream operations continue
to deliver top quartile production
efficiency performance across
the portfolio.
UK Upstream
2025 UK operations
performance summary
Production of 31,122 Boepd across
EnQuest’s UK upstream assets was
underpinned by strong production
efficiencies across the portfolio and the
Group’s investment in low-cost,
quick-payback well work and
production optimisation, offsetting the
impact of natural field declines.
Kraken
2025 performance summary
The Kraken Floating, Production, Storage
and Offloading (‘FPSO’) facility delivered
an exceptional production efficiency of
95% (2024: 96%) and water injection
efficiency of 93% (2024: 95.5%) for the
year, resulting in average 2025 net
production of 10,948 Boepd (2024: 12,759
Boepd). This is a testament to the focus
and collaboration between the EnQuest
and Bumi Armada operational teams,
delivering production efficiency
performance that is 28% above the
industry average benchmark for floating
hubs (as measured against the latest
North Sea Transition Authority data).
The Kraken maintenance shutdown
was deferred to 2026 to enable isolation
upgrades that will reduce the production
impact associated with future planned
maintenance. The Group continues to
optimise Kraken cargo sales through the
shipping fuel market. Kraken oil is a key
component of International Maritime
Organization (‘IMO’) 2020 compliant
low-sulphur fuel oil and, avoiding
refining-related emissions.
2026 outlook
The asset team is focused on
maintaining best-in-class FPSO
production efficiency through focused
investment in maintenance and
reliability activities, while aiming to
manage reservoir decline and fuel gas
production with water injection sweep
optimisation. Work is ongoing to mature
the Kraken Enhanced Oil Recovery (‘EOR’)
project during 2026. Following an initial
round of polymer testing, further work is
ongoing to ensure the compatibility of
reservoir chemicals with topside process
equipment. EOR represents a material
upside to Kraken’s value, with base case
incremental recoverable oil estimates of
more than 40 MMbbls gross.
The EnQuest team is also advancing a
fuel gas import project that involves the
subsea tie-back of a Bressay gas well to
the Kraken FPSO. By establishing an
alternative to the diesel currently used
to power Kraken operations, this project
has the potential to drive a step change
reduction in FPSO emissions and
operating costs. It is anticipated that
the Bressay gas well can be drilled as
part of an expanded well programme,
alongside the resumption of drilling at
Kraken and a subsea well plugging and
abandonment programme. Significant
progress has been made in aligning the
technical development scenario with
the NSTA, and both a Bressay FDP and a
Kraken FDPA are at an advanced stage.
With c.33 MMboe of 2C resources, and
Harbour Energy expected to replace
Waldorf as our field partner, EnQuest
remains well positioned to pursue infill
drilling opportunities in the main Kraken
field reservoir. Plans for these activities
will be advanced in parallel with the EOR
project. In 2026, Kraken production will
be subject to natural field decline and
the impact of a short maintenance
“pit-stop” shutdown planned in the third
quarter of the year, which has been
reduced from 15 days through planned
upgrades to isolations between the two
production trains.
Magnus
2025 performance summary
In 2025, Magnus delivered an 8%
increase in asset production, achieving
15,335 Boepd (2024: 14,173 Boepd) despite
a five-week third-party infrastructure
outage in the first half of the year. The
annualised impact of this outage was
c.1.7 Kboed in deferred production;
equivalent to the volume lifted within a
standard Magnus offtake. The
production increase was underpinned
by exceptional production efficiency of
93% (2024: 83%) excluding third-party
downtime, and the proactive
completion of key maintenance scopes
during the production shut-in meant
that the seven-day maintenance
shutdown originally planned for the
second half of the year was not required.
2025 asset production benefitted from
a successful two-well infill drilling
programme, with both wells producing
above mid-case expectations, well
interventions and well optimisation
work. The period June to August 2025
saw EnQuest deliver the best three-
monthly oil production rate at Magnus
since early 2020, peaking at c.19 Kboed
barrels of oil per day in mid-July. In
addition, the recommissioning of a fifth
water injection pump provided a 20%
uplift in Magnus water injection
capacity, with field average water cut
reduced back to 2017 pre-acquisition
levels of around 85%.
2026 outlook
The Group plans to execute a six-well
infill drilling programme at Magnus,
commencing in May 2026 and
culminating in 2027. The programme
includes well targets in the Lower
Kimmeridge Clay Formation (‘LKCF’)
reservoir, which is estimated to contain
c.325 million barrels of oil in place. The
Group is targeting 10 MMbbls of
production upside from the next
production phase at the LKCF. Looking
beyond this programme of work,
Magnus 2C resources of c.28 MMboe
offer additional significant low-cost,
quick-payback drilling and well
intervention opportunities.
Storm damage at the third-party
operated Ninian Central Platform
(‘NCP’) resulted in a five-week
unplanned outage for all system users,
including Magnus, at the start of 2026.
Production was reinstated on
22 February.
EnQuest is proactively addressing the risk
of third-party equipment unavailability to
Magnus production and is progressing
plans to facilitate a bypass of NCP during
2027. Alongside ongoing work at the
Sullom Voe Terminal on the New
Stabilisation Facility, this project will
secure a long-term export pathway for
Magnus oil.
Following the initiation of the Magnus
Emissions Reduction project in Q4 2024,
engineering work will continue in 2026.
This project demonstrates EnQuest’s
commitment to the decarbonisation of
its portfolio.
Greater Kittiwake Area
2025 performance summary
At the Greater Kittiwake Area (‘GKA’),
2025 production averaged 1,825 Boepd
(2024: 2,009 Boepd), largely in line with
expectations. Solid operational
performance in the year was
underpinned by production efficiency
of 75% (2024: 77%) and included the
efficient completion of the planned
maintenance shutdown.
2026 outlook
EnQuest and its partners are focused on
extending field life and executing an
efficient glide path to decommissioning,
including plans for early plugging and
abandonment of platform wells prior to
cessation of production, and in parallel
with 2026 production operations. This
process will be managed in full by
EnQuest, with Shell having transferred its
decommissioning operator role to
EnQuest during 2024.
Non-operated North Sea assets
2025 performance summary
2025 production across the Group’s
non-operated UK interests averaged
3,014 Boepd (2024: 3,646 Boepd), with
asset performance continuing in line
with the Group’s expectations.
2026 outlook
At Golden Eagle, a 41-day shutdown is
planned during the third quarter.
At Alba, the most significant activity
centres on decommissioning, with the
cessation of asset production planned
during the summer.
Ian McKimmie
Interim General Manager,
North Sea
UK Upstream operations
1
Daily average net
production Boepd
31,122
-4%
2024: 32,587
1
Includes Magnus, Kraken, Golden Eagle,
the Greater Kittiwake Area including
Scolty/Crathes and Alba
UK operated production
efficiency
87%
2024: 88%
In February 2026, EnQuest
executed the settlement of the
Magnus contingent consideration.
The transaction reflects EnQuest’s
confidence in the long-term value
of the Magnus asset and unlocks
the full upside associated with
the Group’s production
enhancement plans.
Under the terms of the transaction,
EnQuest paid $60.0 million in cash
to BP to secure 100% of future
Magnus cash flows by crystallising
the remaining contingent
payments that would otherwise
have been payable over time
(valued at $432.9 million on a
discounted basis at 30 June 2025).
By settling the contingent
consideration at this stage, EnQuest
secures full economic exposure to
the asset and enhances its ability
to optimise operational and
strategic decisions over the life of
the field, thereby simplifying the
Group’s balance sheet and
removing future financial variability
associated with the mechanism.
This agreement does not alter
arrangements originally agreed in
respect of the decommissioning of
pre-acquisition infrastructure.
This credit-enhancing settlement is
expected to simplify capital
management and provide greater
transparency and predictability of
future cash flows.
Case study
Magnus value-accretion
24–25
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Strategic Report
Operational review
continued
South
East
Asia
EnQuest advanced its international
growth strategy in 2025 by securing
high‑potential gas opportunities in
Brunei and Indonesia, establishing
new joint ventures, and initiating
early‑stage technical work that
positions the Group for material
long‑term production and
reserve additions.
Brunei Darussalam – Block C
Following the award of a Production
Sharing Agreement for Block C in
Brunei during July 2025, EnQuest has
finalised the key terms for the
formation of a 50/50 joint venture
company (‘JVC’) with Brunei Energy
Exploration Sdn Bhd and the Minister
of Finance Corporation, with
incorporation planned by the third
quarter of 2026. The JVC will assume
operatorship for Block C.
In the meantime, work has
commenced to finalise the resources
and evaluate gas development
concepts for delivery to the BLNG
plant in Lumut, Brunei. With the
potential for first gas from Block C
during 2029, EnQuest anticipates that
this development could deliver
c.15 Kboed net production and add
c.55 MMboe of additional reserves
from the initial fields developed,
based on a 50% net share.
The Group will also assess additional
fields in the block concurrently,
in order to evaluate future
development plans.
Indonesia – Gaea & Gaea II PSCs
Having been confirmed as the
successful bidders in April 2025,
EnQuest and its joint venture partners
completed the signing of the Gaea
and Gaea II PSCs on 1 August 2025.
EnQuest has a 40% participating
interest in the blocks and is the PSC
operator, alongside its partners, the
Tangguh Joint Venture (with 40%
participating interest, comprising BP
Exploration Indonesia Limited, MI
Berau B.V. (an INPEX and Mitsubishi
joint venture company), CNOOC
Southeast Asia Limited, ENEOS Xplora
Inc., Indonesia Natural Gas Resources
Muturi, Inc. (an LNG Japan
Corporation), and KG Wiriagar
Petroleum Ltd (a Mitsui & Co., Ltd)),
and PT Agra Energi Indonesia (20%
participating interest).
The resource potential of Gaea and
Gaea II is estimated to be in excess of
100 Tscf by the Indonesian Ministry of
Energy and Mineral Resources, with
the blocks located in proximity to the
bp-operated Tangguh LNG facility.
The focus of the Joint Venture is on
geological and geophysical
evaluation of well correlation,
stratigraphic work and regional 2D
seismic interpretation across both
blocks, with the potential for
high-impact exploration targeting
large potential gas volumes in a
frontier region.
The agreement enables EnQuest and
its partners to develop and
commercialise the non-associated gas
resources in the PM8E PSC contract
area and, in line with expected
demand, supply around 70 mmscf per
day of sales gas. With a 50% equity
share, this represents c.35 mmscf per
day net to EnQuest, which equates to
c.6,000 Boepd.
Demonstrating the Group’s project
delivery expertise, work to drill
recompletions on five existing wells and
execute infrastructure modifications
was completed nine months ahead of
schedule, with gas production
beginning in December 2025. EnQuest
commenced full production at 70
mmscf/d in January 2026, with capacity
now proven to increase gross
production to c.100 mmscf/d,
supporting Peninsular Malaysian
demand and helping the nation meet
its growing energy needs. These
volumes also increase the gas
component of EnQuest’s production,
which aligns with the Group’s
strategic aim to reduce its overall
carbon intensity.
The EnQuest Malaysia
decommissioning team was also
recognised with an award for
Abandonment Excellence at the
PETRONAS Emerald Awards, following
the successful execution of a six-well
plugging and abandonment (‘P&A’)
campaign during 2024. In 2025, EnQuest
completed the P&A of a further five
wells, with work commencing following
the Seligi gas workover programme.
This takes the total number of
completed P&A wells in Malaysia to 21.
EnQuest continued its excellent HSE
performance in Malaysia during 2025,
reaching the milestones of over three
years and seven million man-hours
without a lost time incident.
2026 outlook
The Group plans to drill further non-
associated gas wells during 2026, as
well as a programme of well workover
and idle well restoration activities.
A nine-day shutdown at PM8/Seligi to
undertake asset integrity and
maintenance activities is planned for
the summer, which will help to improve
reliability and efficiency at the field.
At DEWA, which is located around 60km
offshore Sarawak, Malaysia, the Group’s
operated acreage includes 12
discovered fields with significant gas
development potential. EnQuest is
targeting a phased development, with
Phase 1 expected to deliver net
production of c.9 Kboed and c.28
MMboe of net reserves. The Field
Development and Abandonment Plan
(‘FDAP’) and Final Investment Decision
(‘FID’) are planned for the second half of
2026, subject to joint venture partner
and regulatory reviews and approvals.
EnQuest received a Letter of Award
(‘LOA’) for a participating interest in the
Cendramas PSC by Petronas. The terms
of the LOA, subject to the finalisation
and signing of the Joint Operating
Agreement and the Cendramas PSC,
are effective from 23 September 2026,
with more details on the PSC to be
provided upon signing.
Block 12W, Vietnam
2025 performance summary
In July 2025, EnQuest completed the
acquisition of Harbour Energy’s
business in Vietnam, including a 53.125%
equity interest in the Chim Sáo and Dua
production fields. This transaction
aligns with the Group’s strategic aim to
grow its international operating
footprint by investing in fast-payback
assets, with low capex and reduced
carbon intensity.
South East Asia
operations
1
Daily average net
production Boepd
11,823
+45%
2024: 8,149
The transaction had an effective date
of 1 January 2024, with a headline value
of $85.1 million. Net of interim period
cash flows, the consideration paid by
EnQuest was $25.7 million.
Having assumed operatorship of the
Chim Sáo and Dua fields (‘Block 12W’)
from completion, EnQuest is deploying
its proven late-life and FPSO asset
management expertise to maximise
value and is working to progress
discovered resources into reserves. The
Group executed three proactive well
investments in the second half of 2025,
boosting net average production in the
fourth quarter to c.5.5 Kboed. Reported
net production, on an annualised basis,
was 2,622 Boepd, while pro forma
production for 2025 was 5,283 Boepd.
EnQuest has delivered 100% production
efficiency since taking over as operator.
2026 outlook
Having already enhanced production
since assuming operatorship of the
Chim Sáo and Dua fields in July 2025,
the PSC extension provides EnQuest
and its joint venture partners with the
opportunity to access upside across
Block 12W and progress discovered
resources into reserves, with
prospectivity spread across three
gas discoveries and several
additional targets.
1
Includes 9,201 Boepd from Malaysia and
2,622 Boepd from Vietnam
As a country, Vietnam has significant
potential for oil and gas development
beyond its established 4.4 billion Boe
reserves, with an increase in exploration
in the hydrocarbon-rich South China
Sea driving projects which seek to
replace the production from mature
offshore fields. In addition, there is
significant opportunity for late-life
asset managers, such as EnQuest, to
acquire producing assets as
established operators have PSCs
nearing their end dates. In Vietnam,
EnQuest has been successful in
extending the Block 12W PSC by four
years to July 2034, on its existing terms.
Radzif Ahmed
General Manager, South East Asia
PM8/Seligi, Malaysia
2025 performance summary
EnQuest was again named Malaysia
Operator of the Year at the 2025
PETRONAS Emerald Awards, becoming
the first company to receive this
prestigious accolade in successive
years. To be recognised in this way by
PETRONAS is an important validation of
the Group’s reputation as a top-tier
operator, both in Malaysia and across
the South East Asia region and is a
testament to the work undertaken
across the EnQuest Malaysia team.
Malaysian production averaged 9,201
Boepd, 12.9% higher than 2024. This
increase was driven by continued
operational excellence and production
efficiency of 93% (2024: 94%), as well as
a programme of infill drilling, idle well
restoration and well workovers.
Following the award of an expansion to
its Seligi gas agreement, EnQuest has
successfully accelerated plans to
develop an additional 155 Bscf
(c.27 million barrels of oil equivalent)
of non-associated Seligi field
gas resources.
Delivering
diversified
growth
Foundation set for growth
Delivering diversified growth – New country entries
26–27
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Strategic Report
Operational review
continued
2025 saw EnQuest further cement its
capability as a leading North Sea
decommissioning operator; applying
learnings to deliver performance well
ahead of industry benchmarks.
Decommissioning
Heather successfully
completed its remaining
P&A programme, totalling
41
Wells abandoned
Thistle successfully
completed its P&A
programme with
42
Wells abandoned
Case study
Excellence in decommissioning
Heather decommissioning –
Award‑winning performance
EnQuest’s Heather Project has
set a new benchmark for
decommissioning on the UKCS,
winning the 2025 OEUK ‘Excellence in
Decommissioning’ award. Delivered
safely, on budget, and with a strong
focus on innovation, collaboration,
and sustainability, the project
exemplifies what modern
decommissioning should look like.
The campaign successfully P&A’d 41
wells, followed by the safe and
efficient removal of the 15.3 kT
topsides. A standout achievement
was the 15-day transition from
final well P&A to full crew
disembarkation — a pace-setting
milestone described by one of
EnQuest’s joint venture partners as
having “reset the bar” for
downmanning.
Heather was also a proving ground
for new technologies, including the
deployment of the Control Cutter,
which enhanced efficiency and
safety in conductor removal. These
innovations de-risked performance
and delivered cost efficiencies.
The project was executed with a
strong safety culture and incurred
no major incidents. The team also
demonstrated environmental
leadership by committing to reuse
or recycle 97% of all
decommissioning waste.
Delivered on budget, the integration
of new technologies and continuous
improvement ensured value was
maximised at every stage. The P&A
delivery performance was 20-25%
below the P50 industry benchmark
for both cost and schedule, based
on NSTA data up to the end of 2024.
The team also shared learnings with
other North Sea operators,
reinforcing EnQuest’s commitment
to industry-wide improvement and
knowledge transfer.
The Heather project has delivered
on its objectives and has set new
standards in decommissioning.
From operational excellence to
environmental stewardship and
regulatory innovation, EnQuest has
demonstrated leadership that will
influence future campaigns across
the basin.
Performance summary
EnQuest’s dedicated in-house
decommissioning team delivered a
landmark year in 2025, reinforcing its
position as a leader in North Sea
decommissioning. All well plug and
abandonment (‘P&A’) activities have
now been successfully completed at
Heather and Thistle, marking a
significant milestone in these projects
and a major step in the safe and
efficient retirement of these offshore
assets. The Heather topsides were
safely removed from the field,
while preparations for Thistle’s
removal progressed at pace, setting
the stage for the next phase of
heavy-lift operations.
These achievements underscore
EnQuest’s commitment to operational
excellence and environmental
responsibility as it continues to execute
complex multi-asset campaigns ahead
of schedule and within budget.
Well decommissioning
Between 2022 and 2024, the latest
period for which NSTA data is available,
EnQuest has completed 47% of all
Northern and Central North Sea well
P&A activity, at a cost that is
significantly below the basin average.
At both the Heather and Thistle fields, all
P&A activities were completed after
three-and-a-half-year campaigns on
each asset, with a total of 83
successfully abandoned. In 2025, the
Thistle team executed the remaining
seven wells to Phase 2, with the main rig
then recovering 11 conductors. The
remaining 13 conductors were
recovered offline during a multi-year
conductor-pulling unit campaign. At
Heather, the well P&A campaign was
completed in March 2025, with a total of
34 conductors successfully removed by
the main rig.
Throughout 2025, EnQuest has also
progressed planning and engineering
work on the Kittiwake platform wells
and subsea wells at Magnus and Alma
Galia, while continuing to discuss the
future work programmes with the North
Sea Transition Authority.
Preparation for removal
Alongside the completion of P&A at
Heather, the project team completed
final preparations in readiness for the
Allseas Pioneering Spirit vessel
campaign to remove the topsides.
The Heather team disembarked safely
from the platform, completing the asset
rundown efficiently following well P&A.
Key tasks included cleaning the
topsides and utility rundown. The
Allseas Oceanic CSV then carried out
the required leg-cutting work ahead of
the arrival of the Pioneering Spirit
heavy-lift vessel. In August the
Pioneering Spirit mobilised, lifted the
Heather topside, and offloaded it at the
MARS disposal yard in Denmark.
At Thistle, the project team continued to
demonstrate its ability to deliver
multiple key scopes simultaneously.
EnQuest and Saipem teams worked
closely together, advancing
engineering and planning for the
pre-disembarkation preparation phase,
which commenced in April and
continued throughout the year, ahead
of the future heavy-lift campaigns.
Subsea campaigns were also
completed, covering essential
inspection, repair and maintenance
activities, as well as conductor recovery,
utilising a bespoke conductor drill and
pinning tool designed specifically for
the Thistle campaign. 2025 marked the
final full year on the platform, with
disembarkation planned for the first
half of 2026, upon completion of the
extensive pre-disembarkation
preparations scope and platform
run-down.
Asset removals
In 2025, significant preparatory work
was completed, and Heather was
disembarked to allow Allseas and their
Pioneering Spirit heavy lift vessel to
remove the topsides from the field. The
Heather project reached a major
decommissioning milestone, following
the safe removal of the Heather Alpha
topsides in August. The Allseas-owned
Pioneering Spirit heavy lift vessel
removed the 15,300 tonne topsides in a
single lift; the largest single lift in the
North Sea in 2025. The topsides were
transported to Denmark where 97% of
all decommissioning waste is to be
reused or recycled. The Heather jacket
is scheduled for removal in 2027, which
aligns with previously agreed
contractual execution windows.
Nick Tulip
Offshore Projects & Decommissioning Director
28–29
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Operating Review
Midstream Operations
EnQuest is committed to
the
decarbonisation of the Sullom Voe
Terminal as part of a just transition.
Midstream
Safe, stable operations
Throughout 2025, the Group continued
to deliver safe, stable and effective
operations for both East of Shetland
and West of Shetland oil and gas,
delivering 100% uptime for both oil
streams, and 100% uptime for West of
Shetland gas. In addition, the SVT power
station achieved 100% power delivery
throughout the period. The terminal
continued to deliver strong HSE
performance, effectively managing the
increase in project personnel on-site
throughout the year.
Decarbonisation
The Group is focused on right-sizing SVT
for future operations. During 2025,
EnQuest successfully advanced two
strategic projects: to connect the
terminal to the UK’s electricity grid and
the construction of New Stabilisation
Facilities (‘NSF’). Completion of the NSF
is expected to enable the Group to
meet the North Sea Transition Authority
(‘NSTA’) target of zero routine flaring
obligations by 2030.
The aggregated impact of these two
projects is expected to transform the
carbon footprint and overall emissions
from SVT and the EQUANS-operated
Sullom Voe power station, which will be
retired once the grid connection is
in place.
The delivery of these scopes will reduce
the Terminal’s operating costs and
provide resilience for long-term
operations through the replacement of
obsolete equipment. Together, these
projects provide the opportunity to
extend production at both East of
Shetland and West of Shetland assets.
In 2025, EnQuest continued the phased,
partial decommissioning of redundant
processing and storage facilities at SVT.
This scope has reduced the risk
potential at the site, along with
reducing ongoing operating costs. A
world-first scope involved the removal
of a redundant crude oil tank with roof
integrity issues, highlighting EnQuest’s
decommissioning expertise.
Furthermore, the removal of the
facilities creates the opportunity
to repurpose areas of SVT for third-
party use, including renewable
energy projects.
2025 emissions at SVT were improved
year-on-year, following a period of
elevated flaring due to issues
encountered with the site’s gas
compression system, which resulted in
flaring above the routine baseline
levels. Following the effective
deployment of an engineering and
repair solution, the compression system
was returned to full operations, resulting
in a return to lower process flaring and
emissions. It should be noted that the
impacted compressor will be retired
when the NSF is operational.
People and community
EnQuest continues to build its
community investment on Shetland
with contributions to local charities and
sports groups, and through its
workforce development programmes.
The Group has a well-established
apprentice programme at SVT. In 2025
the numbers were increased with two
apprentices in college and three
working at the terminal gaining
valuable experience in 2025. The Group
also continued with its graduate
programme in 2025, with one engineer
successfully completing the EnQuest
Graduate scheme at SVT.
SVT supported a range of cultural and
sporting events in Shetland in 2025,
including the Shetland Junior Golf Open
and sponsorship of local table tennis
events, Shetland Rugby Club U18 Italy
tour and Shetland Folk Festival. SVT was
proud to have sponsored Team
Shetland and Ability Shetland to take
part in the Disability Summer Games in
Stirling, in which 19 athletes from
Shetland took part.
“SVT was proud to
support a range of
cultural and
sporting events on
Shetland in 2025.”
SVT right-sizing
Planned reduction in SVT
carbon footprint
c.90%
SVT service uptime
Oil and gas operations
100%
New Stabilisation Facility
Right-size the terminal’s oil
& gas processing facility to
support upstream field
life extensions
Connecting SVT to the UK
electricity grid
Long-term, reliable power
supply through 2026
grid connection
Electrification
Onshore wind project
harnessing Shetland’s
world-class wind capacity
factor – targeting 2026 FID
Foundation set for growth
Reduce emission
intensity
Seven educational awards for the
academic year 2024-2025 were made
by the Trustees of the Sullom Voe
Terminal Participants’ Tenth
Anniversary Fund. Now in its 37th year,
the Trust was established to promote
and encourage the education of
Shetland residents who will be
studying a discipline likely to
contribute to the social or economic
development of Shetland.
This year, students are engaged
in disciplines as wide-ranging as
English language and linguistics,
energy transitions and sustainability,
mathematics and structural
engineering.
As operator, EnQuest also offers a
scholarship opportunity to a student
studying in a technical or commercial
discipline that is relevant to SVT, where
they take part in a work placement at
the terminal during the summer break.
Bronagh Mckendry
SVT Operations Manager
30–31
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
We recognise the evolving energy
landscape
and are committed to
leading a Just Energy Transition,
ensuring that our workers, the
communities we serve, and our
stakeholders benefit in the process.
Veri Energy
Veri Energy is a wholly owned
subsidiary of EnQuest,
focused
on transforming skills and
infrastructure to deliver
economic decarbonisation
solutions, initially at the Sullom
Voe Terminal (‘SVT’) on Shetland.
Veri Energy is supporting the UK
Government’s Clean Power 2030
Action Plan and delivering
against the Scottish
Government’s Energy Strategy
and Just Transition Plan.
Note:
Veri Energy does not yet earn revenues and is not yet
a material part of the Group from a capital and
human resources allocation perspective.
Operating Review
Veri Energy
CCS project storage
Up to (mtpa)
10
Shetland onshore wind
capacity factor
52
%
Gavin Templeton
CEO, Veri Energy
Veri Energy is fuelling the
UK’s energy transition
Using the SVT site as a base, Veri Energy
is looking to support further industrial
decarbonisation and future growth in
the energy transition through the
execution of phased renewable
energy developments.
Electrification/Onshore wind
During 2024, Veri Energy identified and
progressed an opportunity to develop
an onshore wind project on behalf of
EnQuest, designed to harness
Shetland’s exceptional wind resource to
support decarbonisation and lower
operating costs at the Sullom Voe
Terminal. The project advanced
through front-end engineering and
design in 2025, with a final investment
decision expected in 2026.
E-fuels
In early 2025, Veri Energy launched a
major initiative to evaluate investable
pathways for e-fuel production at
Sullom Voe. Working with leading global
technology providers, the team
assessed and de-risked the full value
chain for producing e-fuels from green
hydrogen and biogenic CO
2
.
This work aims to unlock Scotland’s
potential to produce low-carbon fuels
by also harnessing Shetland’s
exceptional wind resource and the
inherent advantages of the terminal
site, strengthening long-term energy
security and resilience. Support from
Aberdeen’s Net Zero Technology Centre,
through its Energy Hubs project, is
enabling the development of an
advanced operating model for future
e-fuel facilities.
The assessment evaluated both
methanol synthesis and Fischer–
Tropsch pathways using market-
leading technologies. Following this
analysis, the first phase will prioritise the
development of an e-methanol facility,
with front-end engineering and design
expected to begin in 2026. E-methanol
was selected due to its strong
applicability for marine
decarbonisation and its role as a key
feedstock for sustainable aviation fuel
via methanol-to-jet technology.
Additional workstreams commencing
in 2026 will explore replication of the
e-methanol facility and future
expansion into downstream
e-SAF production.
With a skilled local workforce and
advantaged site conditions, the Sullom
Voe development has the potential to
scale into a meaningful e-fuels export
opportunity over time.
Carbon capture and storage (‘CCS’)
Veri Energy continues to develop a
flexible, merchant-market carbon
storage solution that can transport and
permanently store up to 10mtpa of CO
2
from isolated emitters in the UK and
Europe. CO
2
captured by emitters will
be transported via ship to SVT from
where it will be transported via
repurposed pipeline infrastructure, for
permanent geological storage in
depleted oil and gas reservoirs.
In August 2023, EnQuest successfully
secured four carbon storage licences
as part of the first round of UK carbon
sequestration licences issued by the
North Sea Transition Authority (‘NSTA’).
Following work to assess the licences,
EnQuest took the decision to relinquish
the Tern and Eider licences, effective
1 March 2025. The remaining licence
areas, CS013 and CS014, are some 99
miles northeast of Shetland and
incorporate fields currently operated by
EnQuest, the Magnus and Thistle fields.
These sites are large, well-
characterised deep storage formations
connected by significant existing
infrastructure to the Sullom Voe
Terminal on Shetland.
During 2025, work included significant
engagement with the NSTA to progress
the licences through early risk
assessment and site characterisation,
engaging with strategic partners and
refining the project development plan.
Veri Energy continues to be encouraged
by the project’s potential to be a
low-cost merchant-market solution for
CO
2
emitters to permanently sequester
carbon beginning in the early 2030s.
“We launched a major
initiative to evaluate
investable pathways for
e-fuel production at
Sullom Voe.”
32–33
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Oil and gas reserves and resources
Hydrocarbon assets
Oil and gas reserves and resources
Hydrocarbon assets
EnQuest asset base as at 31 December 2025
EnQuest asset base as at 31 December 2025
Licence
Block(s)
Working
interest (%)
Name
Decommissioning
obligation (%)
UK North Sea Upstream production and development
P193
211/7a & 211/12a
100.0
1
Magnus
30.0
2
P1077
9/2b
70.5
Kraken & Kraken North
As per working interests
P1107/P1617
21/8a, 21/12c & 21/13a
50.0
Scolty/Crathes
As per working interests
P238
21/18a, 21/19a & 21/19b
50.0
Kittiwake
25.0
50.0
Mallard
30.9
50.0
Grouse & Gadwall
As per working interests
P073
21/12a
50.0
Goosander
As per working interests
P213
3
16/26a
8.0
Alba
As per working interests
P234/P493/P920/P977
3/28a, 3/28b, 3/27b, 9/2a, 9/3a
85
Bressay
P1078
9/3b
100
Bentley
P300/P928
3
14/26a, 20/1a
26.69
Golden Eagle
P2632
5
9/1, 9/2c
70.5
West of Kraken
UK North Sea Decommissioning
P242
2/5a
n/a
Heather
37.5
P242/P902
2/5a & 2/4a
n/a
Broom
63.0
P475
211/19s
n/a
Thistle
6.1
4
P236
211/18a
n/a
Thistle/Deveron
6.1
4
P236
211/18c
n/a
Don SW & Conrie
60.0
P236/P1200
211/18b & 211/13b
n/a
West Don
78.6
P2137
211/18e & 211/19c
n/a
Ythan
60.0
P1765/P1825
30/24c & 30/25c, 30/24b
n/a
Alma/Galia
65.0
Other UK North Sea licences
P90
3
9/15a
33.3
n/a
Malaysia production and development
PM8/Seligi
6
PM8 Extension
50.0
Seligi, North & South Raya,
Lawang, Langat, Yong & Serudon
50.0
DEWA Complex
Cluster SFA PSC
42.0
D30, D30W, Danau, Daya, Daya
North, D41, D41W, Dafnah West,
Dana, Darma, West Acis, and
Spaoh
Indonesia
Gaea & Gaea II PSC
Gaea & Gaea II
40
Brunei
Block C PSA
Block C
100
Vietnam
Block 12W PSC
Block 12W
53.125
Chim Sáo & Dua
Notes:
1
Having substantially agreed with BP to settle the 75% Magnus contingent consideration profit share arrangement in December 2025, EnQuest paid $60.0 million to
BP in February 2026, resulting in EnQuest becoming entitled to 100% of Magnus cash flow. Previously, BP was entitled to 37.5% of free cash flow from Magnus
2
BP has retained the decommissioning liability in respect of the existing Magnus wells and infrastructure. EnQuest will pay BP additional deferred consideration by
reference to 30% of BP’s actual decommissioning costs on an after-tax basis, which EnQuest estimates will result in a payment equivalent to approximately 9% of
the gross estimated decommissioning costs. The additional consideration payable is capped at the amount of cumulative positive cash flows received by EnQuest
from Magnus, SVT and the associated infrastructure assets
3 Non-operated
4
EnQuest is liable for the decommissioning costs associated with investment since it assumed operatorship, with the balance remaining with the former owners.
Following the exercise of the Thistle decommissioning options in January and October 2018, EnQuest will undertake the management of the physical
decommissioning of Thistle and Deveron and is liable to make payments to BP by reference to 7.5% of BP’s decommissioning costs of Thistle and Deveron, which
equates to 6.1% of the gross decommissioning costs
5
UK 33rd licence round award. EnQuest relinquished this licence in February 2026
6
Official reference PM-8 Extension PSC, commonly referred to elsewhere as PM8/Seligi
North Sea
South East Asia
Total
Oil and
NGLs
MMbbls
Gas
Bcf
Total
MMboe
Oil and
NGLs
MMbbls
Gas
Bcf
Total
MMboe
Oil and
NGLs
MMbbls
Gas
Bcf
Total
MMboe
2P reserves (working interest)
1,2,3,5,6
1 January 2025
123.3
52.7
132.3
20.0
94.2
36.3
143.3
146.9
168.6
Revisions
4
0.5
0.3
0.6
2.0
30.7
7.6
2.6
31.0
8.2
Production
(10.5)
(5.2)
(11.4)
(2.6)
(1.7)
(2.9)
(13.1)
(6.9)
(14.3)
31 December 2025
113.3
47.8
121.5
19.5
123.2
41.0
132.8
171.0
162.5
2C resources (working interest)
1,2,7,8
1 January 2025
305.1
18.1
308.2
17.8
160.2
45.4
322.9
178.3
353.6
Revisions, additions and
relinquishments
(0.4)
0.0
(0.4)
21.1
403.7
98.9
20.7
403.7
98.5
31 December 2025
304.8
18.1
307.9
38.9
563.9
144.3
343.6
582.0
452.1
Notes:
1
Reserves and resources are quoted on a working interest basis
2
2P reserves and 2C resources have been assessed by the Group’s internal reservoir engineers, utilising geological, geophysical, engineering and financial data
3
The Group’s 2P reserves have been audited by a recognised Competent Person in accordance with the definitions set out under the 2018 Petroleum Resources
Management System and supporting guidelines issued by the Society of Petroleum Engineers
4
Includes newly acquired Block 12W in Vietnam
5
The above proven and probable reserves include volumes that will be consumed as fuel gas, including c.6.0 MMboe at Magnus, c.1.2 MMboe at Block 12W,
c.0.6 MMboe at Kraken, c.0.1 MMboe at Golden Eagle and c.0.1 MMboe at Scolty Crathes
6
The above 2P reserves at 31 December 2025 on an entitlement basis is 152 MMboe (North Sea 122 MMboe and South East Asia 31 MMboe)
7
Contingent resources are quoted on a working interest basis and relate to technically recoverable hydrocarbons for which commerciality has not yet been
determined and are stated on a best technical case or 2C basis
8
2C contingent resources at 31 December 2025 include the volumes associated with the Group’s PSC award at Block 12W in Vietnam and Block C in Brunei
Darussalam
9 Rounding may apply
34–35
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Financial review
“The steps we have taken during 2025
provide a strong platform of transaction-
ready liquidity.”
Jonathan Copus
Chief Financial Officer
Dividend paid in 2025
15.3
$ million
New Reserve Based
Lending facilities
800.0
$ million
EnQuest has continued to focus on
simplifying and strengthening
its
balance sheet to provide significant
transactional capacity
Introduction
Against an uncertain macro-economic backdrop, EnQuest
has used the tangibility of its hydrocarbon reserves and
strength of its relationships to further simplify and strengthen
its balance sheet. The Group has also managed its exposure
to lower and more volatile oil prices and a weaker USD,
through a combination of hedging programmes, cost control
and liquidity management. These steps have enabled the
Group to build a significant platform of liquidity – that can be
used to deliver both organic and transformational growth.
In November, EnQuest successfully refinanced its Reserve
Based Lending Facility (the ‘RBL’). Structured around a $400.0
million loan tranche and $400.0 million letter of credit tranche,
the new facility extends the instrument’s maturity to 2031;
expands Group total liquidity ($678.6 million at 31 December
2025; $474.5 million at 31 December 2024) and simplifies the
management of decommissioning obligations. An accordion
of up to $800.0 million provides the potential to increase each
tranche by up to $400.0 million.
In December 2025, EnQuest reached substantial agreement
with bp to settle the outstanding Magnus profit-share-related
contingent consideration for $60.0 million (paid in February
2026). This credit enhancing transaction removes a material
liability from EnQuest’s balance sheet (which had a
discounted value of $432.9 million at 30 June 2025) and
opens significant additional RBL capacity. By securing full
economic value to Magnus, EnQuest has enhanced its ability
to optimise operational and strategic decisions over the life of
the field, simplified its balance sheet and removed future
financial variability associated with the mechanism.
To manage risk, EnQuest maintains a balanced programme
of hedging. With average Brent declining 15% in 2025 and the
USD weakening 10%, the Group’s commodity and foreign
exchange hedge programme delivered an aggregate
$29.4 million of realised gains (2024: aggregate $10.0 million
realised loss). From 1 April 2026, EnQuest has hedged a total of
5.1 MMbbls for the next 12 months with an average floor price
of $71.3/bbl and a further 3.5 MMbbls in the subsequent
12-month period with an average floor price of $64.4/bbl, in
each case predominantly utilising swaps.
The Group reported an IFRS post-tax profit of $1.6 million for
the year to 31 December 2025 (2024: $93.8 million profit).
Underlying this figure, settlement of the Magnus Contingent
Consideration crystalised net other income of $391.3 million
(pre-tax aggregate change in fair value of contingent
consideration, see note 21) and a net impairment reversal of
$5.8 million (2024: $71.4 million charge) was largely offset by
the non-cash deferred tax charges of $152.4 million relating to
the Magnus profit share settlement and the previously
reported $123.9 million non-cash adjustment due to extension
of the EPL ‘windfall tax’ by two years (from 31 March 2028 to
31 March 2030), lower underlying profit before tax (driven by
lower oil prices) and a higher current year EPL tax charge of
$84.1 million (2024: $10.3 million).
Free cash flow generation in the period was $8.7 million
(2024: $53.2 million), reflecting lower oil revenues, higher UK
tax payments and growth-focused capex programmes at
Magnus and PM8/Seligi. After payments made in relation to
the Group’s maiden dividend, Vietnam acquisition and RBL
refinancing fees, EnQuest net debt increased by $48.1 million,
to $433.9 million. With the RBL fully undrawn at 31 December
2025, cash and available undrawn facilities were
$678.6 million (31 December 2024: $474.5 million).
Positioned for
growth
Income statement
Revenue
Group production averaged 42,945 Boepd, 5% higher than
2024. Underlying this was strong asset uptime performance of
c.90%, the contribution from the acquisition of producing
interests in Vietnam, and investment in low-cost, quick-
payback well work and production optimisation at Magnus
and PM8/Seligi. Partially offsetting these positives was a
five-week shut in at Magnus, related to a third-party
infrastructure outage and natural field declines. Oil
accounted for 84.1% of this output (2024: 87.2%).
Brent crude oil prices declined 15% year-on-year to average
$68.2/bbl (2024: $80.5/bbl) while the average day-ahead UK
gas price increased by 5% to 88.3 GBp/therm (2024: 83.6 GBp/
therm). Excluding the impact of hedging, EnQuest realised an
average oil price of $68.1/bbl (2024: $81.3/bbl). Post-hedging,
the realised oil price was $68.8/bbl (14.2% lower than in 2024,
$80.2/bbl).
Reflecting the above price and volume drivers, Group revenue
in the period totalled $1,118.3 million, a 5% reduction year-on-
year (2024: $1,180.7 million). In this figure, oil contributed
$858.2 million (16% lower year-on-year, 2024: $1,020.3 million)
and condensate and gas revenue contributed $200.5 million
(22% higher year-on-year, 2024: $164.6 million). Gas revenue
mainly relates to the onward sale of gas purchases from
third-party West of Shetland fields under the terms of the
Magnus acquisition. The contribution of these volumes to
revenue is offset through an equal and opposite charge to
cost of sales.
Tariffs and other income generated $3.6 million
(2024: $2.6 million), which includes income associated
with the transportation of the initial Seligi 1a associated
gas agreement.
Having repositioned and expanded the Group’s programme
of hedging in H2 2024, realised gains on commodity hedges
in 2025 totalled $8.7 million, primarily reflecting the gains on
swap contracts (2024: loss of $12.9 million). Unrealised gains
on open commodity contracts (from mark-to-market
movements) totalled $45.2 million (2024: $3.1 million gain).
Note: For the reconciliation of realised oil prices see ‘Glossary – Non-GAAP
measures’ starting on page 192
Cost of sales
Reflecting the Group’s South East Asian expansion, a weaker
USD and higher volumes and prices associated with third-
party West of Shetland gas that crosses the Magnus
facility, cost of sales increased 6% to $837.5 million
(2024: $787.4 million).
Excluding the impact of the ‘crossover’ gas volumes (2025:
$166.2 million; 2024: $125.7 million), cost of sales was held
broadly flat, with the Group’s active foreign exchange
hedging programme reinforcing the Group’s continued focus
on cost control.
Similarly, production growth and the weaker USD increased
underlying production costs to $344.5 million (2024:
$307.6 million). Inclusive of a $19.7 million net realised hedging
gain (2024: net losses of $4.7 million) production costs
increased by just 4%, with total operating costs up 3% at
$394.0 million (2024: 382.8 million). Unit operating costs fell by
2% to $25.1/Boe (2024: $25.6/Boe).
36–37
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Financial review
continued
2025
$ million
2024
$ million
Production costs
344.5
307.6
Tariff and transportation expenses
69.2
70.5
Realised (gain)/loss on derivatives
related to operating costs
(19.7)
4.7
Operating costs
1
394.0
382.8
Charge/(credit) relating to the Group’s
lifting position and hydrocarbon
inventory
17.4
2.2
Other cost of operations
179.6
135.0
Depletion of oil and gas assets
267.3
263.3
Other cost of sales
(20.8)
4.1
Cost of sales
837.5
787.4
Unit operating cost
2
$/Boe
$/Boe
– Production costs
22.0
20.6
– Tariff and transportation expenses
4.4
4.7
Average unit operating cost
(excluding gain/loss on derivatives)
26.4
25.3
Average unit operating cost
(including gain/loss on derivatives)
25.1
25.6
Notes:
1
See reconciliation of alternative performance measures within the ‘Glossary
– Non-GAAP measures’ starting on page 192
2
Calculated using production on a working interest basis including Seligi
Associated Gas (1a)
The charge relating to the Group’s lifting position and
hydrocarbon inventory for the year ended 31 December 2025
was $17.4 million (2024: $2.2 million), reflecting the optimisation
of oil sales from Magnus. Depletion expense ($267.3 million)
was 2% higher than 2024 ($263.3 million), mainly reflecting the
impact of the Vietnam acquisition, and other cost of sales
($20.8 million) reflects unrealised gains on foreign exchange
and UKA forward contracts (2024: $4.1 million losses).
Impairment
In the year, the Group recognised a non-cash net impairment
reversal of $5.8 million (2024: $71.4 million charge).
Contributing to this, a reversal of $94.3 million at Kraken and
an aggregate charge of $88.5 million for GKA, Golden Eagle
and Alba, were primarily driven by a combination of a
reduction in the discount rate to 9.0% (from 10.0% at
31 December 2024), reductions in near-term oil price
assumptions (reflecting market dynamics) and updated
production and cost profiles, including the impact of a
weaker USD.
Other income and expenses
The Group recognised net other income in the period of
$369.7 million (2024: net other expense of $4.7 million). The
majority of this figure relates to a net $391.3 million non-cash
credit that was triggered by EnQuest’s agreement with bp to
settle the outstanding Magnus profit share element of
contingent consideration for $60.0 million (see note 21 for
further detail). Lease income in the period totalled
$20.4 million (2024: $16.5 million). Offsetting this income, was
a non-cash foreign exchange revaluation loss of $28.3 million
(2024: $10.0 million foreign exchange revaluation gain), with a
$14.5 million non-cash net increase in the decommissioning
provision of fully impaired non-producing assets (2024:
non-cash charge of $7.1 million). 2024 also included a
$14.6 million charge relating to the termination of a drilling
rig contract, which followed Waldorf Petroleum’s decision
to defer near-term Kraken infill drilling, due to its
financial circumstances.
Other expenses include costs associated with Veri Energy,
which totalled $3.6 million in the year (2024: $1.7 million).
Adjusted EBITDA
Adjusted EBITDA for the year totalled $503.8 million, down 25%
compared to the same period in 2024 ($673.9 million). This
reduction primarily reflects changing production mix and
lower oil revenue – driven by lower commodity prices (see
detail above).
EnQuest’s net debt to last 12-month adjusted EBITDA ratio at
31 December 2025 equalled 0.9x (31 December 2024: 0.6x).
Adjusted EBITDA
2025
$ million
2024
$ million
Profit/(loss) from operations before tax
and finance income/(costs)
648.8
311.5
Net unrealised commodity, foreign
exchange and UKA hedge (gain)/loss
(77.5)
(0.3)
Depletion and depreciation
272.4
269.3
Impairment (reversal)/charge
(5.8)
71.4
Change in fair value of contingent
consideration
(387.1)
15.9
Net other expenses
21.9
21.6
Change in well inventories
2.8
(5.5)
Net foreign exchange revaluation loss/
(gain)
28.3
(10.0)
Adjusted EBITDA
1
503.8
673.9
Note:
1
See reconciliation of Adjusted EBITDA within the ‘Glossary – Non-GAAP
measures’ starting on page 192
Finance costs
EnQuest’s overall net finance costs increased by 7%, to
$155.4 million (2024: $144.9 million).
Finance charges included interest on loans and borrowings of
$75.3 million (2024: $73.5 million), the unwinding of discounting
on decommissioning and other provisions (2025: $36.7 million;
2024: $31.2 million) and lease liability interest costs (2025:
$25.1 million; 2024: $27.7 million). Refinancing fees, the
amortisation of finance fees on loans and borrowings and
other financial expenses (including the cost for surety bonds
that provide security for decommissioning liabilities) totalled
$27.5 million (2024: $27.1 million).
Finance income decreased to $9.2 million reflecting lower
interest receivable from bank balances (2024: $14.5 million).
Profit/loss before tax
Reflecting the movements above, the Group’s profit before tax
was $493.4 million (2024: profit of $166.6 million).
Taxation
The 2025 tax charge of $491.9 million includes a non-cash
deferred tax charge of $374.7 million and a current tax charge
of $117.2 million.
As previously highlighted in the Group’s results for the six
months ended 30 June 2025, the deferred tax charge is
heavily distorted by the non-cash impact of the two-year
extension to the EPL; resulting in a charge to EnQuest of
$123.9 million. The Group also recognised a further non-cash
deferred tax charge of $152.4 million, which relates to the
Magnus profit share settlement, and $98.4 million of other
non-cash tax charges that reflect the utilisation of EnQuest’s
strategic UK North Sea tax asset in the period and tax on
unrealised hedge gains.
The current cash tax charge, excluding prior year
adjustments, includes $84.1 million related to the EPL
(2024: $10.3 million), with the increase driven by lower capital
expenditure and reduced EPL investment allowances, partly
resulting from the abolishment of certain allowances from
1 November 2024.
The Group’s income statement effective tax rate for the period
was 99.7% (2024: 43.7%), with the two-year extension to the EPL
constituting 25.1% of the Group’s total 2025 effective tax rate.
EnQuest’s strategic UK North Sea tax asset was estimated at
$1,851.3 million (gross) at 31 December 2025 (31 December
2024: $2,066.4 million (gross)). The decrease reflects utilisation
against UK upstream taxable profits.
Due to this tax position, no significant Corporation Tax or
Supplementary Charge is expected to be paid on UK
operational activities for the foreseeable future. The Group
expects to continue to make EPL payments for the duration of
the EPL, noting however that the UK Government has indicated
its intention to end EPL earlier than the current March 2030
legislated sunset date. In the Autumn Statement 2025, the UK
Government announced that they will introduce the Oil and
Gas Pricing Mechanism, a revenue-based windfall tax to
replace EPL. EnQuest also pays cash corporate income tax on
its Malaysian and Vietnam assets.
Profit/loss for the period
EnQuest’s total profit after tax was $1.6 million (2024: profit
after tax of $93.8 million). 2025 profit is heavily distorted by the
significant non-cash impacts of the UK Government’s
decision in October 2024 to extend EPL by two years. Excluding
this impact, EnQuest delivered an underlying profit for the
period of $125.5 million.
Earnings per share
The Group’s reported basic earnings per share was 0.1 cents
(2024 earnings per share: 5.0 cents) and reported diluted
earnings per share was 0.1 cents (2024 earnings per share:
4.9 cents).
Cash flow, EnQuest net debt and liquidity
Reported net cash flows from operating activities for the year
were $362.7 million. This was 29% below the comparative
period of 2024 ($507.6 million), which primarily reflects
lower oil revenues due to the 15% year-on-year decline
in Brent prices.
Reported net cash flows used in investing activities increased
by $11.8 million, to $194.2 million. Whilst this figure includes the
“one-off” acquisition cost of Vietnam ($20.3 million), the 2024
figure of $183.6 million included “one-off” receipts associated
with the Bressay transaction of $108.8 million. Excluding these
“one-off” items, net cash flows used in investing activities
decreased by $117.3 million, principally reflecting $73.7 million
lower capital expenditure (2025: $179.2 million; 2024:
$252.9 million) and no Magnus profit share payments
(2024: $48.5 million).
Cash outflow on capital expenditure is set out in the
table below:
Capital expenditure
2025
$ million
2024
$ million
North Sea
128.0
230.4
Malaysia and Vietnam
48.5
19.0
Exploration and evaluation
2.7
3.5
179.2
252.9
The Group utilised $192.9 million of cash in financing activities
(2024: $352.9 million). Interest payments on the Group’s
borrowings totalled $97.0 million (2024: $83.2 million).
$83.1 million was paid in relation to finance leases (2024:
$130.1 million), with the reduction versus 2024 primarily
reflecting the c.70% contractual step down in charges relating
to the Kraken FPSO, partially offset by lease payments
associated with the Vietnam FPSO. In 2025, net borrowings
totalled $6.0 million (2024: net repayments of $130.6 million). In
the period, EnQuest also paid a maiden dividend, equivalent
to $15.3 million (2024: share buyback of $9.0 million).
Despite significantly lower oil prices, EnQuest generated
$8.7 million of adjusted free cash flow in 2025. This reflects
higher cash tax payments and production enhancing
investments, alongside management’s focus on cost control,
capital discipline and liquidity management. In aggregate,
Group cash and cash equivalents decreased by $11.3 million
to $268.9 million (2024: $280.2 million) and EnQuest net debt
rose $48.1 million to $433.9 million (2024: $385.8 million).
Primary drivers of this net debt rise were payment for the
Vietnam acquisition ($20.3 million), payment of costs relating
to the refinancing of the Group’s RBL facility ($17.8 million) and
EnQuest’s inaugural dividend ($15.3 million).
38–39
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Financial review
continued
The movement in EnQuest net debt was as follows:
$ million
EnQuest net debt 1 January 2025
(385.8)
Net cash flows from operating activities
362.7
Cash capital expenditure
(179.2)
Net interest and finance costs paid
(91.7)
Finance lease payments
(83.1)
Dividend paid
(15.3)
Vietnam asset acquisition
(20.3)
RBL re-financing fees
(17.8)
Other movements, primarily net foreign exchange
on cash and debt
(3.4)
EnQuest net debt 31 December 2025
1
(433.9)
Note:
1
See reconciliation of alternative performance measures within the ‘Glossary
– Non-GAAP measures’ starting on page 192
EnQuest net debt
31 December
2025
$ million
31 December
2024
$ million
Bonds
644.4
632.1
Senior secured debt facility (‘RBL’)
–
–
Vendor loan facility
22.1
–
SVT working capital facility
36.3
33.9
Cash and cash equivalents
(268.9)
(280.2)
EnQuest net debt
1
433.9
385.8
Note:
1
See reconciliation of EnQuest net debt within the ‘Glossary – Non-GAAP
measures’ starting on page 192
EnQuest continues to monitor the debt capital markets and
would look to opportunistically refinance its existing 2027
bond maturities, subject to market conditions.
Balance sheet
EnQuest’s robust liquidity position enables the Group to
continue delivering its capital-efficient programmes of
capital investment and pursue transformational North Sea
and International production acquisitions.
Assets
Total assets increased by 0.9% to $3,594.3 million
(31 December 2024: $3,562.6 million). This was mainly driven by
the acquisition of Vietnam assets, which contributed
additional PP&E of $47.1 million and higher receivables of
$152.5 million. The receivables were primarily associated with
the Group’s share of contributions already paid into the
abandonment fund held in Vietnam (totalling $92.1 million)
which was established to ensure that sufficient funds exist to
meet future abandonment obligations (recorded in provisions
as set out below) on Block 12W, partner share of the FPSO
lease liability and other receivables. Other financial assets
increased by $71.8 million, primarily reflecting mark-to-market
gains on the Group’s derivatives at 31 December 2025
(mark-to-market losses of $21.6 million at 31 December 2024
were shown in liabilities). The Group’s deferred tax asset
decreased by $235.1 million, primarily as a result of the tax
effect of the change in fair value associated with the Magnus
profit share contingent consideration and utilisation of the
carry-forward tax loss position.
Liabilities
Total liabilities increased by 1.5% to $3,066.3 million
(31 December 2024: $3,020.1 million). Decommissioning
provisions increased by $174.0 million, reflecting $89.1 million
additional obligations in Vietnam following the acquisition in
July 2025 (offset by $92.1 million additional abandonment
fund receivables noted above) (see notes 15 and 22) and in
Malaysia related to the Seligi 1b gas project. Lease liabilities
increased by $36.9 million, primarily reflecting the Vietnam
FPSO lease obligations acquired, while trade and other
payables also increased by $40.2 million, mainly in relation to
the acquisition of Vietnam. Loans and borrowings increased
by $42.6 million, reflecting drawdown of the vendor loan
facility and foreign exchange movements on the GBP retail
bond. Deferred tax liabilities increased by $145.7 million,
primarily reflecting the impact on deferred tax from the
two-year extension to the UK EPL. These increases were in turn
offset by the agreement with bp to settle the Magnus profit
share contingent consideration for $60.0 million, which led to
a net reduction in the fair value estimate of $391.3 million,
leaving a contingent consideration liability (including the
Magnus-linked decommissioning liability) of $84.6 million
(31 December 2024: $473.3 million).
Financial risk management
The Group’s activities expose it to various financial risks,
particularly those associated with fluctuations in oil price,
foreign currency risk, liquidity risk and credit risk. The
disclosures in relation to financial risk management
objectives and policies, including the policy for hedging, and
the disclosures in relation to exposure to oil price, foreign
currency and credit and liquidity risk, are included in note 27
of the Group’s 2025 Annual Report.
Going concern
During 2025, EnQuest has continued to focus on optimisation
of its capital structure and the maximisation of its available
transactional capacity.
In November, EnQuest signed a new six-year senior secured
reserve based lending facility which replaced the previous
RBL, providing the Group with an enhanced capital structure
that is simple, flexible and aligned with its growth ambitions.
Details of the amended facility are provided in note 17. In
February 2026, the Group made final settlement for the
Magnus profit share contingent consideration, securing 100%
of future Magnus cash flows while maintaining its limited
exposure to future decommissioning expenditure at the asset.
This credit-enhancing settlement, simplifies the Group’s
balance sheet, unlocks the full upside of one of EnQuest’s
core assets, and further secures longer term capacity under
its RBL.
EnQuest closely monitors and manages its funding position
and liquidity requirements throughout the year, including
forecast covenant results. Cash forecasts are regularly
produced and discussed, with sensitivities considered for, but
not limited to, changes in crude oil prices (adjusted for
hedging undertaken by the Group), production rates and
costs. These forecasts and sensitivity analyses allow
management to mitigate liquidity or covenant compliance
risks in a timely manner. Management have considered the
impact of the situation in the Middle East, particularly on
future oil prices. Reflecting the uncertainty as to how long the
conflict and the period of elevated oil prices will last,
management have assumed in the Base Case that the
average oil price for the going concern period will be $70.0/
bbl. Although this is slightly higher than that used in its
impairment assessment (see note 2) to reflect post year-end
pricing trends, it is considerably below current spot prices.
The Group’s latest approved budget and long-term plan
underpin management’s base case (‘Base Case’), upon
which a reverse stress test has been performed. This indicates
that an oil price of c.$45.0/bbl is required to maintain
covenant compliance over the going concern period. The
low level of this required price reflects the Group’s strong
liquidity position.
The Base Case has also been subjected to further testing
through a scenario that explores the impact of the following
plausible downside risks (the ‘Downside Case’):
•
10.0% discount to Base Case prices, resulting in Downside
Case prices of $63.0/bbl for 2026 and 2027;
•
Production risking of 5.0%; and
•
2.5% increase in operating costs.
The Base Case and Downside Case indicate that the Group is
able to operate as a going concern and remain covenant
compliant for 12 months from the date of publication of its
full-year results (the “going concern period”).
After making appropriate enquiries and assessing the
progress against the forecast, the Directors have a
reasonable expectation that the Group will continue in
operation and meet its commitments as they fall due over
the going concern period. Accordingly, the Directors continue
to adopt the going concern basis in preparing these
financial statements.
Viability Statement
The Directors have assessed the viability of the Group over a
three-year period to March 2029. The viability assumptions
are consistent with the going concern assessment, with
consistent plausible downside risks applied in a Downside
Case. This assessment has taken into account the Group’s
financial position as at 24 March 2026, its future projections;
the Group’s bond maturities, which occur within the viability
period; and the Group’s principal risks and uncertainties. The
Directors’ approach to risk management, their assessment of
the Group’s principal risks and uncertainties, and the actions
management are taking to mitigate these risks, are outlined
on pages 62 to 74. These risks and uncertainties include
potential impacts from climate change concerns and related
regulatory developments. The period of three years is
deemed appropriate as it is the time horizon across which
management constructs a detailed plan against which
business performance is measured, and, given the Group’s
focus on short-cycle, quick payback capital expenditures on
its existing portfolio, is a time horizon over which the Group
can undertake any necessary mitigation activities. Under
both the Group’s Base Case and Downside Case projections,
the Directors have a reasonable expectation that the Group
can continue in operation and meet its liabilities as they fall
due over the period to March 2029.
For the current assessment, the Directors also draw attention
to the specific principal risks and uncertainties (and
mitigants) identified below, which, individually or collectively,
could have a material impact on the Group’s viability during
the period of review. In forming this view, it is recognised that
such future assessments are subject to a level of uncertainty
that increases with time and, therefore, future outcomes
cannot be guaranteed or predicted with certainty. The impact
of these risks and uncertainties has been reviewed on both an
individual and combined basis by the Directors, while
considering the effectiveness and achievability of potential
mitigating actions.
Commodity prices
A decline in oil prices would adversely affect the Group’s
operations and financial condition. To mitigate oil price
volatility, the Directors have hedged future production
volumes utilising mainly swaps. The Directors, in line with
Group policy and the terms of its RBL facility, will continue to
pursue hedging at the appropriate time and price.
Access to capital
Prolonged low oil prices, cost increases and production
delays or outages could threaten the Group’s liquidity and
access to funding.
The Directors recognise the importance of ensuring medium
term liquidity. The Group has evidenced its continued
management of funding and prioritisation of debt reduction
by remaining undrawn on its RBL at both 2024 and 2025
year-ends. The increase in available funds under the RBL
following the recent refinancing and the long-dated maturity
profile of this facility, along with the additional debt capacity
expected to arise following settlement of the Magnus profit
share contingent consideration provide a material level of
funding within the viability period. With the Group’s bonds
maturing in the fourth quarter of 2027, which is within the
viability period, Management have assumed, and are
confident, that these will be successfully refinanced based on
the Group’s strong track-record and ongoing investor
appetite to invest in the energy industry. Refinancing would
likely occur well ahead of their maturity, providing funding
beyond the viability period.
Notwithstanding the principal risks and uncertainties
described above, the Directors have a reasonable
expectation that the Group can continue in operation and
meet its commitments as they fall due over the viability
period ending March 2029. Accordingly, the Directors
therefore support this viability statement.
40–41
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
The following information is prepared in accordance with
Section 414CB(1) of the Companies Act 2006. Further
information on each of the areas set out below, including the
Group’s policies where relevant, can be found in the following
pages of this section of the report. The Group’s business
model can be found on page 2, while its key performance
indicators can be found on page 5. The Group’s principal risks
can be found on page 66 and include HSE, Human Resources
and Reputation.
Environmental (see Pages 48 to 55, and 76 to 85)
•
At the core of EnQuest’s Values is SAFE Results with no harm
to people and respect for the environment
•
EnQuest’s Environmental Management System (‘EMS’)
ensures the Group’s activities are undertaken in such a way
that it manages and mitigates its impact on the
environment. The EMS meets both the requirements of
OSPAR and the International Organization for
Standardization’s environmental management system
standard – ISO 14001. Environmental performance is
regularly reviewed by senior management and the Board,
with no Health and Safety Executive (‘HSE’) Improvement
Notices received in 2025
•
Having progressed three significant renewable energy and
decarbonisation opportunities at Sullom Voe Terminal, the
Group launched Veri, with responsibility for delivering the
Group’s short- and medium-term emission reduction
objectives and advancing longer-term renewable energy
and decarbonisation opportunities
•
During 2023, EnQuest’s Board approved a commitment to
reach net zero in respect of Scope 1 and Scope 2 emissions
by 2040
•
The Group continues to make good progress in reducing its
absolute Scope 1 and 2 emissions. Since 2018, UK emissions
have reduced by 46%, which is significantly ahead of the UK
Government’s North Sea Transition Deal target of achieving
a 10% reduction in Scope 1 and 2 CO
2
equivalent emissions
by 2025
•
In 2024, the Group expanded its Scope 3 emissions
reporting to include Category 6 ‘Business travel’, category 7
‘Employee commuting’ and, most materially, Category 11
‘Use of sold products’. These reporting categories are in
addition to Category 5 ‘Waste generated in operations’,
which formed part of the Group’s SECR in the UK in 2023
•
EnQuest has reported on all the emission sources within its
operational control required under the Companies Act 2006
(Strategic Report and Directors’ Reports) Regulations 2013
•
The Group continues to evolve its disclosures in accordance
with the recommendations of the Task Force on Climate-
related Financial Disclosures
•
EnQuest achieved a global sector-leading ‘A-’ rating for its
2025 CDP Climate Change submission (2024: B)
Our people (see Pages 59 to 61)
•
EnQuest is committed to providing an inclusive culture
that recognises and celebrates difference and sees
a diverse culture as an enabler of creativity and
performance improvement
•
The Group-wide diversity and inclusion strategy was
updated in 2024 to a Diversity, Equity and Inclusion strategy,
with an associated policy and plan published on the
Group’s website
•
DE&I statistics are monitored and reported to senior
management on a monthly basis
•
The mental and physical welfare of all employees continues
to be a major focus across the business
•
A broad programme of job-specific training was
undertaken to ensure high levels of skill, competence and
safety are maintained across our operations
•
The UK’s EnQlusion workforce group and Wellbeing
Committee promoted a number of initiatives during 2025
and EnQuest maintained its membership of the OEUK (D&I)
Special Interest Group
Community (see Pages 58 to 59)
•
Management consider that no formal policy is required
given the key impacts on the community of environmental
performance and our people. However, EnQuest is fully
committed to active community engagement
programmes, encouraging and supporting charitable
donations in the areas of improving health, education and
welfare within the communities in which it works
•
In Aberdeen, EnQuest was able to donate to a range of
charities including its two core charities in the North Sea,
CLAN Cancer Support and the Archie Foundation
•
There was continued support for a range of cultural events,
charitable donations and educational awards in Shetland
throughout the year
•
In Malaysia, EnQuest maintained its support of the Sungai
Pergam Orang Asli Primary School in Terengganu, by
contributing to student bursaries students through the
MyKasih ‘Love My School’ programme, alongside a
university scholarship programme
Group non-financial and sustainability
information statement
Business conduct (see Page 75)
•
The Group’s Code of Conduct sets out the behaviour which
the organisation expects of its Directors, managers and
employees, and of our suppliers, contractors, agents
and partners
•
This code addresses several areas, including the
importance of health and safety and environmental
protection, compliance with applicable law, anti-corruption,
anti-facilitation of tax evasion, anti-slavery, addressing
conflicts of interest, ensuring equal opportunities,
combatting bullying and harassment and the protection
of privacy
•
All employees in the Group undertake Anti-Bribery and
Corruption and anti-facilitation of tax evasion training
annually, with participation statistics reported to the Board
•
The Group is committed to ensuring that it respects (and
never participates in the violation of) international human
rights. It does this through strict adherence to the Code of
Conduct, its Modern Slavery Statement and the EnQuest
Values (see page 75)
•
The highest potential risk of modern slavery would be in the
supply chain, and is covered by the supply chain policy. As
such, risk-based due diligence may be conducted on
suppliers before allowing them to become a preferred/
pre-qualified supplier, with on-site audits undertaken where
appropriate. EnQuest also conducts training for its
procurement teams so that they understand the signs of
modern slavery and how to raise any concerns they
may have
•
EnQuest is not aware of any slavery or human trafficking
within its business or supply chains and no issue in relation
to modern slavery has been raised
42–43
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Environmental, Social and Governance
Our quest for better continues
Our quest for
better continues
“EnQuest is focused on delivering
today’s energy responsibly while
accelerating the transition to a
lower-carbon future.”
Amjad Bseisu
Chief Executive
Our sustainability
highlights for 2025
Reduction in Group
Scope 1 and Scope 2
emissions vs 2020
baseline
26%
Reduction in UK Scope 1
and 2 emissions vs 2018
NSTD baseline
46%
LTIF
1
performance
0.69
Female representation
at Board level
43%
Environmental
Managing emissions
from existing operations
and advancing new
energy opportunities.
See more on
Page 48
Social
Our culture defines how we
approach safety and ensures
that our people, EnQuest’s most
important asset, return home
from work safe and well.
See more on
Page 56
Governance
We are committed to operating
within a robust Risk Management
Framework.
See more on
Page 62
Committed to contributing positively to the drive towards
net zero
Focused on absolute Scope 1 and Scope 2 emission reductions
with rolling Group targets linked to reward
Expansion of Scope 3 disclosure
Growth and diversification ambition centred on reduced
carbon intensity
Committed to operating with a strong culture and Values,
in line with the Group’s purpose
Delivering SAFE Results with no harm to our people
Committed to improving workforce diversity, equity
and inclusion
Committed to positively impact the communities in which
we operate
Committed to operating with the highest standards of integrity,
in line with the Group’s Code of Conduct
Apply the Group’s established Risk Management Framework and
operate within the Board-approved statement of risk appetite
Reward is linked to ESG performance
1
Lost Time Incident Frequency represents the number of
incidents per million hours worked (based on 12 hours for
offshore and eight hours for onshore)
44–45
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Environmental, Social and Governance
Our quest for better continues
continued
Our ESG journey
keeps evolving
Contribute positively towards the drive
to net zero
Reduce absolute Group Scope 1 and Scope 2
emission reductions by 10% across three-
year period
Consolidate sector leadership within CDP
Climate Change survey rating
Committed to operating with a strong
culture and Values, in line with the Group’s
purpose, alongside delivering SAFE Results
with no harm to our people
Committed to improving workforce diversity,
equity and inclusion
Aim to impact positively the communities in
which we operate, prioritising respect
for the environment
Committed to operating with high standards
of integrity in line with the Group’s Code of
Conduct
Apply the Group’s established Risk
Management Framework and operate within
the Board-approved statement of risk
appetite
Reward is linked to ESG performance
26% reduction in Scope 1 and Scope 2 Group
emissions versus 2020 baseline
Reduced year-on-year Group flare emissions
by 24%
Expanded Group Scope 3 disclosures to
incorporate material value chain emissions
Achieved global sector-leading A- rating
for the 2025 CDP Climate Change survey
(2024: B)
Group lost time incident frequency was 0.69
(2024: 1.55). UK average was 2.26 (per OEUK)
Celebrated 20 years without a lost time
incident at the Greater Kittiwake Area. 2025
also saw the Group reach four years LTI free at
Kraken and over seven million man hours LTI
free at PM8/Seligi
23% of UK senior (management-grade) roles
occupied by women
Group Board compliant with FTSE Women
Leaders Review and Listing Rule 6.6.6R(9)
which targets at least 40% of Board members
to be women
Board remains ahead of the Parker Review
requirement with respect to ethnic
minority representation
In preparation for Provision 29 reporting, an
in-depth review and update of the Group’s
principal risks were undertaken
Three-year emission
reduction target vs
2023 baseline
10%
Deliver net zero Scope
1 and Scope 2
emissions by
2040
Deliver LTIF
performance ahead
of industry
benchmarks
<1.00
Our skilled and dedicated
workforce is our strength.
As we navigate the energy
transition, we are committed
to strategies that prioritise
their well-being,
professional growth and
economic security
Female Board-level
representation
>40%
Committed to operating
with high ethical standards,
overseen by a diverse and
knowledgeable Board
Objective
2025
performance
Long-term
goals
2026
ambitions
Environmental
Social
Governance
Read more on Environment
See
Page 48
Read more on Social
See
Page 58
Read more on Governance
See
Page 62
Target 12.2 – By 2030, achieve
the sustainable management
and efficient use of natural
resources
46–47
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Environmental, Social and Governance
Environmental
Decarbonising operations
whilst
developing opportunities within the
wider energy transition.
Environmental
Reduction in UK Scope 1
and 2 emissions
46%
vs 2018 NSTD
1
baseline
Reduction in Group Scope 1
and 2 emissions
26%
vs 2020 baseline
1
North Sea Transition Deal
2 kgCO
2
e/bbl = kilogrammes of CO
2
equivalent per
produced barrel
3
Based on the University of Calgary Petroleum
Refinery Life Cycle Model (‘PRELIM’) recognised by
California Air Resources Board, US Energy
Technologies Laboratory, US DOE Office of Energy
Efficiency and Renewable Energy, Carnegie
Endowment for International Peace and the US
Environmental Protection Agency
A responsible oil and gas operator
with a credible transition roadmap
EnQuest recognises that industry,
together with governments, regulators
and consumers, has a critical role to
play in reducing atmospheric
emissions to mitigate and slow climate
change. The Company is committed to
supporting national emission-reduction
objectives and has a Board-approved
target to reduce Group-operated
Scope 1 and Scope 2 emissions to net
zero by 2040.
At the core of EnQuest’s Values is
achieving SAFE Results, with no harm to
people and a strong respect for the
environment. As an oil and gas
company operating across the
energy-transition lifecycle, EnQuest
remains focused on safely improving
the operational, financial and
environmental performance of its
mature and late-life assets.
Complementing the decarbonisation of
the Group’s existing operations,
EnQuest’s wholly owned subsidiary, Veri
Energy, is advancing scalable
decarbonisation and renewable-
energy opportunities within the Group’s
transition roadmap, including carbon
storage, electrification and the
production of e-fuels.
Reducing Scope 1 and Scope 2 CO
2
e
Within EnQuest’s core Upstream and
Decommissioning businesses, the
Board remains focused on a strategy
that recognises hydrocarbons will
continue to form an essential part of
the global energy mix for decades to
come. Under this strategy, the Group
aims to meet ongoing energy demand
while reducing Scope 1 and Scope 2
emissions from its own operations.
EnQuest has committed to achieving
net zero absolute Scope 1 and Scope 2
CO
2
e emissions by 2040.
By the end of 2025, the Group had
reduced its CO
2
e emissions by 26%
versus the 2020 baseline, which was
adjusted on a pro rata basis to include
Vietnam emissions. This reduction has
been driven by operational and
facilities improvements and lower
flaring and diesel usage. EnQuest’s
emissions reduction trajectory has
consistently outperformed the UK
Government’s North Sea Transition Deal
(‘NSTD’) target of a 10% reduction in
Scope 1 and Scope 2 emissions by 2025,
measured against a 2018 baseline. At
year-end 2025, EnQuest significantly
exceeded this benchmark, achieving a
46% reduction in UK emissions, which
includes the impact of ceasing
production at several Group assets.
Alongside upstream emissions
reductions, the Group continues to
optimise sales of Kraken cargoes
directly into the marine fuel market.
This approach avoids the significant
emissions associated with refining,
estimated at approximately 32–
36 kgCO
2
e/bbl
2,3
for typical North Sea
crude, and supports lower sulphur
emissions in line with International
Maritime Organization (IMO)
2020 regulations.
Portfolio resilience – decarbonisation
and diversification
EnQuest aims to maintain a resilient,
transition-ready portfolio that delivers
sustainable value through the energy
transition. In line with internal targets
and an evolving regulatory landscape,
the Group remains committed to a
transition plan with asset-level
decarbonisation at its core, continually
identifying opportunities to lower the
carbon footprint of its operated
infrastructure.
Emissions performance and transition
readiness are embedded into portfolio
management and acquisition
assessments, ensuring that future
opportunities align with long-term
climate commitments while supporting
operational and commercial resilience.
Through targeted decarbonisation,
operational optimisation and
disciplined investment, EnQuest is
positioning its asset base to remain
competitive, futurefit and aligned with
stakeholder expectations.
Upstream decarbonisation progress
in 2025
Alongside portfolio-wide
improvements, EnQuest is advancing a
series of targeted decarbonisation
initiatives across key operated assets.
Magnus
At Magnus, the Group is investing in the
long-term future of the asset through a
Flare Gas Recovery (‘FGR’) project,
supporting compliance with the NSTA’s
emissions reduction requirements and
contributing to the World Bank’s goal of
zero routine flaring by 2030. The project
forms a core part of the asset’s
decarbonisation roadmap and is
expected to deliver material reductions
in routine flaring once operational.
In addition to the FGR project,
engineering studies are progressing on
three significant decarbonisation
opportunities at Magnus:
•
Compressor re-wheel and seal
upgrades: Engineering modifications
to re-wheel the compressor and
install upgraded seals are under way.
These improvements are expected to
reduce seal leakage and associated
flaring, delivering meaningful
emissions reductions.
•
Flare Gas Recovery system (Select
phase): The FGR system is nearing
completion of the Select engineering
phase. This will drive substantial
reductions in flaring volumes and
support the Group’s broader
emissions reduction commitments.
•
Gas Turbine (‘GT’) power-generation
improvements: Selection engineering
for GT efficiency upgrades is nearing
completion. Initial results indicate the
proposed solution is technically
feasible and could reduce power-
generation emissions by
approximately 40%. Early engineering
assessments suggest a potential
saving of up to 100,000 tCO
2
e per
year, with a more conservative
expected range of around 80,000
tCO
2
e per year, depending on final
design and operating conditions.
Kraken
At Kraken, EnQuest continues to focus
on maximising the use of produced gas
as fuel rather than diverting it to flare.
Boiler control upgrades have now been
implemented across all three boilers,
enabling greater use of produced gas
for steam and power generation, with
the full emissions reduction benefits
expected to continue developing
into 2026.
In parallel, the asset is progressing
efforts to operate one of the main
power generators fully on gas, reducing
diesel consumption and overall carbon
intensity. This is supported by initiatives
to reduce thermal duty through
improved base sediment and water
(‘BS&W’) control, which lowers the need
to reprocess off-spec crude and
reduces heating demand in the crude
oil tank.
Kraken has also delivered reductions in
Scope 3 Category 4 (Upstream
Transportation and Distribution)
emissions through collaboration with a
peer operator to optimise marine
logistics. Sharing vessel resources for
standby and emergency-response
functions has enabled the use of a
single standby vessel instead of two,
reducing fuel use and associated
emissions across the logistics chain.
In addition, the EnQuest team continues
to advance the Bressay gas import
project, planned as a subsea tie-back
to Kraken. Both the Bressay Field
Development Plan and Kraken FDPA are
in draft form, with a final investment
decision expected in 2026. This project
has the potential to further enhance
fuel-gas availability and support
long-term emissions reductions
at Kraken.
Collectively, these initiatives position
Kraken as a key contributor to EnQuest’s
near-term decarbonisation progress
and support the Group’s pathway
toward achieving net zero Scope 1 and
Scope 2 emissions by 2040.
48–49
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Environmental, Social and Governance
Environmental
continued
GKA
At the Greater Kittiwake Area (‘GKA’),
decarbonisation efforts continue to be
evaluated in the context of the asset’s
status as a mature, end-of-life field
approaching cessation of production.
Given its limited remaining economic
life, investment is necessarily short-
term and focused on practical, lower-
cost measures that can deliver
meaningful emissions reductions over
the asset’s final years of operation.
As part of this work, the Group
progressed a feasibility study to assess
the potential for reverting an existing
diesel turbine back to gas firing. If
technically and commercially viable,
this initiative would allow the turbine to
use available fuel gas, offering a
significantly lower-carbon alternative to
diesel and reducing overall emissions.
Although investment is deliberately
constrained due to the asset’s late-life
status, targeted opportunities such as
this can deliver focused emissions-
reduction benefits during the remaining
production period.
Malaysia
During 2025, EnQuest delivered several
key decarbonisation projects across its
operated assets, supporting improved
energy efficiency, enhanced equipment
performance, and reduced emissions.
At PM8/Seligi in Malaysia, the Group
achieved a 36% emissions reduction
against the 2020 baseline. This
performance was driven by upgrades
to the compression system, which
increased compression uptime and
reduced flaring across the hub’s
operations. These enhancements have
improved operating stability while
materially lowering the carbon intensity
of production.
Elsewhere in Malaysia, the HEPA filter
programme reached full completion in
2025. Following installation on Train A in
2024, the remaining upgrades were
finalised with Train C completed in April
2025 and Train B in November 2025. The
improved air-intake quality delivered by
the HEPA filters supports more efficient
compression and contributes further to
reduced flaring.
The Group also completed installation of
the permanent smaller diesel generator
at Raya A during the 5 March 2025 mini
shutdown. This upgrade provides a
more efficient power-generation
solution, reducing diesel consumption
and associated emissions.
Collectively, these 2025 initiatives, each
delivered to 100% completion,
supported material emissions
reductions, enhanced operational
reliability, and contributed to continued
“We are executing a realistic and
responsible pathway to net zero,
reducing the carbon footprint of
our existing assets while
advancing scalable
decarbonisation projects at SVT.”
Amjad Bseisu
Chief Executive Officer
progress against EnQuest’s long-term
decarbonisation targets.
Vietnam
During 2025, EnQuest’s team in Vietnam
completed screening and analysis of 15
active initiatives within its E-hopper
programme. This process was
enhanced by incorporating Group
knowledge and an experience-sharing
network across EnQuest’s global
operations.
This opportunity screening identified
several opportunities to reduce
emissions across the Group’s Vietnam
operations and it is expected that these
initiatives will proceed through project
stage gates.
The most material decarbonisation
scope completed during 2025 centred
on the chemical cleaning of the low
pressure boiler system, which improves
heat transfer efficiency and reduces
the volume of fuel gas required to
generate steam.
Midstream
At the Sullom Voe Terminal (‘SVT’), two
major infrastructure projects are under
way that together are expected to
reduce terminal emissions by more
than 90%. The New Stabilisation
Facility (‘NSF’) will right-size terminal
operations to reflect current
throughput levels, significantly
improving energy efficiency and
reducing operational emissions.
In parallel, the Grid Power Connection
project will enable the retirement of the
onsite gasfired power station,
eliminating one of the terminal’s largest
sources of greenhouse gas emissions.
These projects will transform both the
carbon footprint and operating cost of
SVT, positioning the terminal as a
leading example of the UK energy
transition in practice.
Decommissioning
EnQuest’s UK Decommissioning
directorate oversees the safe and
efficient execution of decommissioning
programmes and remains committed
to delivering them responsibly,
minimising emissions and maximising
the recycling and reuse of recovered
materials. In 2025, the Group continued
to demonstrate sector-leading
performance, completing the plugging
and abandonment (‘P&A’) campaigns
at both Heather and Thistle, at costs
significantly below sector benchmarks.
Following the completion of well P&A at
Heather, the Group achieved a major
milestone with the safe, efficient
disembarkation of the Heather
platform, and the subsequent removal
of the c.15,300 Tonne topsides.
The Heather decommissioning project
was recognised as best-in-class, and
saw EnQuest win the Offshore Energies
UK (‘OEUK’) Award for Excellence in
Decommissioning for 2025. This is the
second time in four years that the
Group has received this prestigious
award, following its 2022 recognition for
the safe and efficient removal of the
Northern Producer Floating Storage Unit
from the Dons field. The accolade
reflects EnQuest’s top-quartile
decommissioning performance, during
which the Group has abandoned 84
North Sea wells over four years and
executed the heaviest lift in the basin
as part of the Heather campaign. When
presenting the award, OEUK noted that
EnQuest has “set an exemplary
benchmark for safety and cost
performance,” demonstrating
“industry-leading efficiency”.
Across the wider portfolio, work at
Thistle continues to progress well,
with disembarkation expected in early
2026. Decommissioning planning is
also under way at GKA, where the
Group is preparing to undertake
well P&A activities alongside
continued production, ensuring safe
execution while maintaining
operational continuity.
Veri Energy
EnQuest, through its wholly owned
subsidiary Veri Energy, continues to
advance a suite of renewable energy
and decarbonisation opportunities that
strengthen the Group’s long-term
transition strategy and support the
repurposing of existing infrastructure
for lower-carbon uses. These initiatives
centre on SVT, where the Group is
progressing opportunities in onshore
wind, e-fuel production, and carbon
capture and storage (‘CCS’).
At SVT, the Group is delivering an
integrated programme to right-size and
decarbonise terminal infrastructure,
including the New Stabilisation Facility
and a grid-connected power solution,
which together are expected to reduce
terminal emissions by more than 90%.
The reconfigured terminal layout
provides the platform for Veri Energy to
pursue longer-term renewable and
low-carbon developments, including
onshore wind generation to support the
electrification of future assets and the
production of e-fuels, such as synthetic
diesel, harnessing Shetland’s
advantaged wind resource. These fuels
offer the potential for low-carbon
alternatives in hard-to-abate sectors
while supporting regional and national
decarbonisation objectives.
Reduction in Group flaring
emissions
24%
vs 2024
“EnQuest is committed
to a Just Energy
Transition, meeting
ongoing oil and gas
needs while delivering
energy with the lowest
possible emissions.”
Radzif Ahmed
General Manager, South East Asia
50–51
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Following the award of four CCS
licences by the North Sea Transition
Authority in 2023, EnQuest completed
technical and commercial evaluation
and subsequently relinquished the Tern
and Eider licences in early 2025. The
remaining licences, CS013 and CS014,
covering the EnQuest-operated
Magnus and Thistle fields, provide an
estimated 200 million tonnes of CO
2
storage capacity. Technical studies
indicate that the existing East of
Shetland pipeline system and SVT
infrastructure could support up to 10
million tonnes of CO
2
per year,
positioning SVT as a strategic hub for
industrial CO
2
import and permanent
sequestration. If progressed at scale,
these opportunities could enable the
Group’s operational carbon footprint to
become net negative by 2030.
Veri Energy’s activities directly enhance
the Group’s strategic resilience,
diversify its participation in energy-
transition value chains, and underpin
EnQuest’s long-term contribution
to emissions reduction and the
transition economy.
Sustainability disclosures
EnQuest recognises that sustainability
is fundamental to long-term value
creation and is preparing to meet the
increasingly stringent ESG and climate-
related disclosure requirements
emerging in the UK and internationally.
The Group views transparent, structured
reporting as a key mechanism for
demonstrating its credible net zero
strategy, strong governance
foundations and commitment to
continuous improvement across
its operations.
In 2025, the Group delivered sector-
leading performance in the CDP
Climate Change survey, achieving an
A- ‘Leadership’ rating. This result places
EnQuest as the highest-rated company
within its comparator set and the only
oil and gas exploration and production
company globally to achieve an A-
rating in 2025. This reflects the
credibility of the Group’s transition
plans, underpinned by emissions
reduction performance and EnQuest’s
differentiated approach to managing
and extending the life of existing assets.
EnQuest is also advancing methane
transparency in anticipation of EU
Methane Regulation 2024/1787, which
introduces enhanced measurement,
monitoring and reporting obligations
from 2027. Work is under way to align
with these requirements across all
material assets, strengthening data
integrity and supporting continued
market access.
Looking ahead, EnQuest is preparing for
the transition to the UK Sustainability
Disclosure Standards (UK SDS), which
will be based on the IFRS S1 and IFRS S2
sustainability and climate-related
disclosure frameworks. With several
years of full TCFD-aligned reporting,
strengthened emissions data controls
and expanded scenario analysis
already in place, the Group is well
positioned for this next phase of
sustainability reporting evolution.
Collectively, EnQuest’s strong CDP
performance, proactive alignment with
emerging methane regulations and
readiness for IFRS-aligned disclosure
standards reinforce the Group’s
ambition to lead on climate
transparency and to support
a credible, investable and resilient
transition pathway.
Expanding and strengthening our
data disclosures
EnQuest recognises the complexity of
its value chain and continues to
enhance the transparency and
completeness of its emissions
reporting. Throughout 2024, the Group
strengthened its Scope 3 reporting
capability, including hosting an
EnQuest-led emissions workshop with
its third-party travel provider and
developing an inhouse commuting-
emissions application. As part of the
Group’s Continuous Improvement Plan
(‘CIP’), this work enabled the expansion
of Scope 3 disclosures to include
Category 5: Waste, Category 6: Business
Travel, Category 7: Commuting
Emissions, and Category 11: Use of Sold
Product, providing greater visibility of
value chain emissions.
Alongside these developments,
EnQuest is progressing the buildout of a
Group-wide emissions data tracker that
will consolidate operated and non-
operated emissions into a single,
standardised reporting disclosure. This
initiative is enhancing data quality and
transparency, strengthening
governance over non-operated
disclosures, and supporting alignment
with the data and control expectations
of IFRS S2 and the forthcoming UK
Sustainability Disclosure Standards.
To ensure consistency with recognised
global practice, the Group is also
deepening its alignment with the
Global Reporting Initiative (‘GRI’)
framework, with a particular focus on
disclosures related to waste, energy
and water. As part of this work, EnQuest
is collaborating with teams across the
UK and South East Asia to assess data
availability and establish the processes
required to strengthen its water-related
reporting, including withdrawals,
consumption and discharge, in line
with GRI’s expectations for materiality
and transparency.
NSTA Data
In 2022, the North Sea Transition
Authority requested companies
operating in the UK North Sea to
consider disclosing certain quantitative
metrics in their annual reports. The
following disclosure has been made for
2025 in accordance with this request:
North Sea Transition Authority – UK
short-term quantitative metrics
Scope 1 and Scope 2
Emissions (tCO
2
e)
705,879
Fugitive Emissions as % of
Marketed Gas
0.077%
Carbon Intensity Total UK
(tCO
2
e/Boe)
0.046
Water Pollution Risks (million
m
3
)
10.39
Waste Management &
Disposal (tonnes)
10,092
Flaring & Venting (kgCO
2
e/
Boe)
0.011
Regulatory Fines
0
Lost Time Injury Frequency
Rate
1.1
Recordable Injury Frequency
Rate
3.04
Restricted Workday Case
4
Medical Treatment Case
3
Lost Work Day Case
4
Emission reduction incentivisation
Emission reduction goals are
embedded within EnQuest’s annual KPIs
and form a core component of the
Group’s medium-term Performance
Share Plan (‘PSP’).
The PSP operates on a rolling three-year
cycle and includes a minimum 10%
emissions-reduction target against a
rolling baseline, reflecting the Board-
approved objective to reduce absolute
Scope 1 and Scope 2 emissions across
the portfolio. These climate-related
objectives are also incorporated into
the Company Performance Contract,
ensuring they cascade throughout the
organisation and support consistent
alignment with EnQuest’s
decarbonisation priorities.
In 2025, EnQuest delivered a 4.7%
reduction in emissions relative to the
2022 baseline, demonstrating
continued progress, on a like-for-like
basis, against its established reduction
pathway and reinforcing the link
between operational performance,
emissions reduction and long-term
value creation.
Environmental, Social and Governance
Environmental
continued
EnQuest was proud to achieve an
A- rating in the 2025 CDP Climate
Change Survey, reflecting the
Group’s strong governance, robust
emissions management, and
clear, transparent strategy to
manage climate-related risks
and opportunities.
EnQuest’s A- is the single highest
score awarded globally within the oil
and gas extraction and production
sector, making EnQuest the only
company in this category to receive
CDP’s leadership-level recognition.
CDP scores companies on the
completeness of disclosure,
awareness and management of
climate risks, and the implementation
of best practices associated with
environmental leadership, including
emissions reduction initiatives,
targets, and governance.
EnQuest continues to make sustained
progress in reducing operational
emissions, supporting energy
security and transition objectives in
the jurisdictions in which it operates,
and strengthening climate-related
governance and reporting in line with
leading international frameworks. The
Group remains committed to
maximising value from mature
assets, reducing emissions through
targeted operational improvements,
and maintaining high standards of
transparency and accountability
for stakeholders.
Note – CDP is a global non-profit
organisation that runs the world’s
leading environmental disclosure
platform. In 2025, CDP scored over
22,000 companies worldwide, with
less than 4% achieving an ‘A’ rating.
EnQuest awarded A- rating in 2025
COP Climate Change Survey
CDP Climate Change Survey – global leader
“Achieving an A- rating
from CDP is a significant
endorsement of the
progress we have made
in embedding climate
considerations into our
strategy, operations and
decision-making.”
Amjad Bseisu
Chief Executive
52–53
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Med
15
16
17
Low
18
19
High
Negligible
Minor
Serious
Impact on EnQuest
Effectiveness of EnQuest’s response
(according to stakeholders)
Severe
Major
8.0
8.5
7.5
7.0
6.5
Process safety and asset integrity
Occupational health and safety
Employment practices
Diversity, equity and inclusion
Forced labour and modern slavery
Freedom of association and
collective bargaining
Supporting local communities
8
9
10
11
12
13
14
Managing a Just Transition
Anti-corruption and bribery
Payments to governments
Public Policy
Data and cyber security
15
16
17
18
19
GHG Emission Stewardship
Climate adaptation, Resilience
and Transition
Air Quality
Conservation
Waste and effluents
Water management
Decommissioning
1
2
3
4
5
6
7
Material Issues
Environment
Safety
Social
Governance
Key
Materiality assessment
In 2024, EnQuest undertook a
comprehensive materiality assessment,
referencing the GRI and the
International Association of Oil & Gas
Producers (‘IOGP’) sustainability topics
for the oil and gas sector. Supported by
Wood Mackenzie, this process enabled
the Group to identify and understand
the relative significance of key
sustainability matters and to ensure
these topics are appropriately
reflected within the Risk Management
Framework (‘RMF’) and broader
governance structures.
As regulatory expectations and
sustainability reporting requirements
continue to evolve, EnQuest will review
and update this assessment regularly
to maintain alignment with best
practice and ensure material topics
remain accurately represented within
its strategy, disclosures and risk
management processes.
The sustainability matrix presented
above illustrates the potential impact of
each key sustainability issue on
EnQuest’s business (x-axis) and
stakeholders’ views of the effectiveness
of the Group’s response (y-axis), with
bubble size indicating stakeholder
importance. Ten issues (1, 2, 7, 8, 9, 10, 14,
17, 18 and 19) were assessed as having a
potentially ‘Severe’ or ‘Major’ impact on
the Company. In response, EnQuest has
undertaken a range of targeted
activities to strengthen its
management of these priority issues;
as follows:
1. GHG emission stewardship
EnQuest advanced emissions-
reduction initiatives across its portfolio
in 2025, progressed major
decarbonisation projects at the Sullom
Voe Terminal, and strengthened
methane measurement and reporting.
Scope 3 coverage, governance
processes and Group-wide emissions
data tracking were enhanced, with
continued alignment to GRI, TCFD and
upcoming UK Sustainability Disclosure
Standards. Performance remained on
track against national targets,
supported by continued Scope 1
and 2 reductions and a global sector-
leading A- rating in the 2025 CDP
Climate Survey.
Further detail on emissions
performance, governance and
decarbonisation actions can be found
in the Environmental section (pages 48
to 55), the TCFD Metrics & Targets
disclosure (pages 76 to 85) and the
Directors’ Report (page 124).
2. Climate adaptation, resilience and
transition
EnQuest strengthened physical-risk
disclosure and resilience measures
through enhanced severe weather
controls, heat-stress management and
supply chain planning. Operational
resilience improved through power-
system, compression and flare
reduction upgrades.
Further detail is provided in the
Environmental and TCFD sections
(starting on pages 48 and 76,
respectively).
Environmental, Social and Governance
Environmental
continued
7. Decommissioning
EnQuest delivered sector-leading
decommissioning performance in 2025,
completing the Heather well plugging
and abandonment (‘P&A’) campaign
and the removal of the 15.3 kT Heather
topsides. EnQuest received the OEUK
Award for Excellence in
Decommissioning for the Heather
project, becoming the first operator to
win this prestigious accolade twice.
EnQuest completed the P&A
programme at Thistle and is planning
full disembarkation of the platform in
2026. At GKA, planning continued
ahead of 2026 well P&A activity, while
further P&A work was completed
in Malaysia.
The Group has also put in place a
multi-year rig contract in order to
facilitate its subsea well P&A
responsibilities, commencing in 2027.
All Group decommissioning activity is
prioritised on the basis of minimising
risk to people and the environment and
is focused on safe execution, emissions
minimisation and maximised recycling
and reuse.
8. Process safety and asset integrity
EnQuest maintained strong process
safety and asset-integrity performance
through its Risk Management
Framework, engineering upgrades and
asset-level controls. Reviewed risk
bowtie analysis and strengthened
preventative and containment controls
supported safe operations, reinforced
by ISO-aligned management systems.
Further detail on process safety and
operational integrity controls is
included within the Environmental
section of the Annual Report and TCFD
Risk Management disclosures.
9. Occupational Health and Safety
EnQuest prioritised workforce well-
being through its SAFE culture and
risk-based HSE controls. The Group
recorded a lost time incident frequency
rate of 0.69 and an RIFR of 1.89, with
embedded safety-critical controls and
oversight from the Sustainability and
Risk Committee supporting continuous
HSE improvement. Further detail is
available in the Environmental section
of the Annual Report and the TCFD Risk
Management disclosures.
10. Employment practices
EnQuest strengthened inclusive
employment practices through its
Diversity, Equality & Inclusion strategy,
underpinned by targets of 20% women
in leadership roles and 33%
representation by individuals from
diverse backgrounds in Executive
leadership by 2025, both of which
were met.
The Group also has in place initiatives
focused on inclusive culture, fair
recruitment and improved
pay-equity monitoring.
Further detail on the Group’s DE&I
commitments and employment-
practice governance is available on
page 59.
14. Supporting local communities
EnQuest supported community health,
education and welfare through a wide
range of charitable programmes,
including those linked to safety
performance.
For further details please see pages
58 to 59.
Materiality Assessment
17. Payments to government
In 2025, EnQuest continued to
demonstrate strong transparency and
compliance in its fiscal contributions by
reporting all payments made to
governments in accordance with UK
DTR 4.3A and the Reports on Payments
to Governments Regulations 2014.
18. Public policy
In 2025, EnQuest engaged
constructively with governments and
regulators to support transparent
policy development and ensure
responsible management of its
energy assets.
Further detail on policy engagement
and regulatory compliance is available
in the ESG and Governance sections of
the Annual Report. See pages 44 to 61,
86 to 87, respectively.
19. Data and cyber security
Cyber security remained a priority in
2025. Following external claims of
unauthorised data access, EnQuest
activated its cyber-security procedures,
strengthened monitoring and
protective controls, and continued to
align practices with recognised
standards to ensure operational
resilience and stakeholder trust.
Please see the IT Security and
Resilience risk on page 73.
Environmental management
EnQuest’s Environmental Management
System (‘EMS’) sets out the procedures
the Group uses to manage and
mitigate environmental impacts and to
identify, assess and prioritise emissions
reduction opportunities. The EMS meets
the requirements of the OSPAR
Recommendations 2003/5 and is
aligned with the environmental and
energy-management standards ISO
14001 and ISO 50001, providing a
structured and internationally
recognised framework for
environmental governance across the
Group’s activities.
As part of EnQuest’s preparation for
evolving regulatory and sustainability-
reporting requirements, it has been
identified that the EMS requires a
comprehensive update to ensure its
continued effectiveness and long-term
applicability. This update will modernise
the system’s structure, strengthen
alignment with emerging disclosure
frameworks, and integrate EnQuest’s
Basis of Reporting directly into the EMS.
Incorporating this guidance will provide
clearer instruction on how
environmental and emissions data
should be interpreted, managed and
disclosed, supporting improved data
quality, transparency and consistency
across the organisation.
54–55
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Environmental, Social and Governance
Social
Our culture
defines how we
approach safety and ensures that
our people, our most important
asset, go home healthy, safe
and well.
Social
LTI frequency
1
performance
0.69
Tier 1 hydrocarbon
releases across the
Group
2
2
Health and safety
Underpinning the Group’s licence to
operate is its health and safety
performance. The Group focuses on the
delivery of SAFE Results while realising
its business objectives. To achieve this,
the business is managed in
accordance with the Board-approved
Group-wide Health, Safety, Environment
and Assurance (‘HSEA’) Policy, which
can be found on the Group’s website,
www.enquest.com, under
Environmental, Social and Governance.
Culture
Safety is at the heart of EnQuest’s
Values. The Group undertakes multiple
risk-based continuous improvement
activities to ensure that its health and
safety culture continues to develop.
These have a focus on the prevention of
personal injuries, dangerous
occurrences and hydrocarbon releases
and, in support of the delivery of SAFE
Behaviours, are aligned to four key
pillars of:
•
Standards
– following rules and
procedures;
•
Awareness
– understanding the
hazards and controls;
•
Fairness
– adopting the correct
behaviours; and
•
Engagement
– communicating
effectively.
EnQuest maintains close engagement
with regulators and industry bodies to
ensure good practices are shared and
regulations applied effectively through
the Group Management System, with
accurate measurement and
improvements driven by the Group
assurance plan.
Several improvements were made
in people, plant and process
safety, including:
•
conclusion of multiple improvement
activities, including delivery of effective
Management of Change controls for
engineering and organisational
change, Process Safety Leadership
training and implementation of a
more effective barrier model for the
Magnus installation;
•
significant progress with both the
timeliness and effectiveness of the
Group’s audit programme and
investigation process, providing
greater preventative insight into
potential gaps and improvements;
•
delivery of both effective contractor
risk ranking, with more efficient
interface arrangements and
interactive contractor forums;
•
effective improvements to health
protection controls, such as asbestos,
water management and fatigue,
where appropriate, sharing internally
developed practices with the wider
industry as best practice; and
•
both operational and shutdown
activities delivering effective safety-
critical maintenance and integrity
programmes, which demonstrate
effective control to the regulator as
well as improved asset integrity,
reliability and uptime.
All key safety metrics improved year-
on-year, meeting or exceeding sector
benchmarks and internal targets.
Malaysia concluded 2025 with a strong
HSE performance, achieving zero LTIs.
Approximately 2.2 million man-hours
were worked, bringing the total to 7.3
million man-hours (more than three
years) since the last LTI.
The Group’s health and safety
performance has remained strong
overall from a leading indicator
perspective. Both LTIs and HCRs saw
improved performance, with the UK and
Malaysia both reporting two HCR
events. The Vietnam acquisition has
been managed effectively, and work
continues to align the Group KPIs to
ensure consistent reporting and shared
improvement targets.
The continuous improvement
programme continues to drive further
value adding adjustment to both
existing processes and through
assessing new and potentially
innovative approaches to delivery in a
cost-effective manner:
•
Review of risk management solutions
to improve efficiency of use, better
integration and a clearer view of
cumulative risk
•
Delivery of Process Safety Leadership
training in the line at sites
•
Effective action management,
ensuring visible trends and delivery of
the highest risk/value activities
•
Enhance and increase Senior
Leadership Engagement at sites,
including contractor involvement
•
Continuing to reduce high-risk safety
and environmental critical element
repair orders
No Health and Safety Executive (‘HSE’)
Improvement Notices were issued in
2025, and all inspection activity was
effectively managed with no threat
of escalation.
Health
EnQuest recognises the benefits of
promoting positive health and well-
being within the workplace, ensuring
support for the employee-led Well-
being Committee and ongoing
involvement with industry health
improvement events such as Rigrun. We
utilise our occupational health support
to deliver helpful advice and host
free-to-attend sessions on topics such
as mental well-being and stress
management. A key focus for 2026 is
the weight limit being applied to the UK
industry offshore, and our support for
the workforce in making healthy
lifestyle improvements before the
deadline is applied in November 2026.
Personal safety
Management of late-life assets through
production operations, drilling and
decommissioning activities requires
constant vigilance and attention to
detail. Plugging and abandonment
activities were successfully and
efficiently executed in the UK on
Heather and Thistle, along with a well
programme on Magnus. For the UK and
Malaysia, against a man-hour total of
5,822,195 hours, the LTI frequency was
0.69, representing a significant
improvement versus 2024 (1.55).
Similar to 2024, the majority of LTIs
related to contractor personnel and
routine activities. Leadership
engagement at site was increased to
help arrest this theme, with sites
holding regular safety standdowns
and Contractor Forums being held
onshore targeting key learnings and
reiterating expectations.
Two key milestones were achieved in
the UK, with Kraken recording four years
LTI free and Kittiwake reaching 20 years
LTI free.
Process safety
Process safety performance continued
to improve, however it remained a
constant focus throughout the year to
maintain performance and reflect
regulatory priorities.
Magnus rolled out its new ‘Clarity’ smart
barrier model tool, following a period of
development to establish the
appropriate KPIs that reflected the right
barriers. Learnings from this
implementation will aid and assist a
more efficient implementation at SVT if
the value is demonstrable.
Adoption of the Clarity tool on Magnus
enhanced the asset’s Process Safety
Improvement Review Board (‘PSIRB’),
ensuring open and transparent
discussions regarding threats and
controls, and, in turn, providing
continuous improvement ideas for
PSIRB sessions on other assets across
the portfolio.
Those assets in a decommissioning
phase and not processing
hydrocarbons continued to focus on
asset integrity and on adapting their
respective barrier models to reflect
the key risks during the
decommissioning phase.
The Group continued to build on both
internal audit and HSEx inspection
activities to ensure internal capability
and focus, as well as process delivery
improvements. The Group’s approach
to Risk Management and Management
of Change will continue this focus
during its 2026 activities.
In both Malaysia and the UK, regulator
interaction continues in an open and
transparent manner, allowing for open
dialogue on issues and visible
improvements to asset risk profiles
through close management of
issues and the effective close-out
of any inspection, audit, and
investigation findings.
1
Lost Time Incident frequency represents the number of incidents per million exposure hours worked
(based on 12 hours for offshore and eight hours for onshore)
2
Tier 1 Hydrocarbon release, 10kg gas or 100kg oil
56–57
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Environmental, Social and Governance
Social
continued
UK
EnQuest made a series of charitable
donations throughout the year:
•
Offshore and at SVT, the charitable
donation scheme is directly linked to
positive health and safety
performance on Group assets.
Through these schemes EnQuest was
able to donate to a wide range of
worthy causes including local cancer
charities and children’s hospices, and
Cairngorm Mountain Rescue. EnQuest
also supported the Scottish Network
for Arthritis in Children, which
provides help and emotional support
for children and families with juvenile
idiopathic arthritis
•
SVT supported a range of cultural
and sporting events on Shetland in
2025, including sponsoring Team
Shetland and Ability Shetland to take
part in the Disability Summer Games
in Stirling. In addition, EnQuest also
sponsored the Shetland Food and
Drink Festival as well as the Shetland
Junior Golf Open and Shetland Table
Tennis Association
•
Seven educational awards for the
academic year 2024-2025 were
made by the Trustees of the Sullom
Voe Terminal Participants’ Tenth
Anniversary Fund. Now in its 37th year,
the Trust was established to promote
and encourage the education of
Shetland residents who will be
studying a discipline likely to
contribute to the social or economic
development of Shetland. This year,
students are engaged in disciplines
as wide-ranging as English language
and linguistics, energy transitions and
sustainability, mathematics and
structural engineering. As SVT
operator, EnQuest also offers a
scholarship opportunity to a student
studying in a technical or commercial
discipline that is relevant to SVT,
where they take part in a work
placement at the terminal during the
summer break
•
In Aberdeen, EnQuest was able to
donate to a range of charities
including its two core charities; CLAN
Cancer Support and the Archie
Foundation. EnQuest also donated to
AberNecessities, a local charity that
works to support children living in
poverty by providing disadvantaged
families with everyday essentials
•
EnQuest also offered ten summer
internship placements to a diverse
group of postgraduates and
undergraduates, working across the
business divisions from Upstream,
and Midstream to HSE, HR and Supply
Chain. Since September 2023,
EnQuest has committed to sponsor a
Mechanical Engineering student from
Aberdeen University for the duration
of their five-year degree course. This
student will be invited to participate
in EnQuest’s intern programme
during their studies. Throughout 2025,
EnQuest also supported a second
Foundation Apprenticeship student. A
Foundation Apprenticeship is a
qualification for school pupils which
combines college-based learning
and work-based learning. EnQuest
will continue to expand its
commitment to develop new talent in
the industry and has already
committed to a further graduate and
intern programme for 2026
•
EnQuest colleagues delivered a
maths masterclass as part of the
annual TechFest, a nationwide
programme supported by The
Royal Institution
Malaysia
In Malaysia, EnQuest continued to
support an active programme of local
community initiatives, charitable
donations, and educational
sponsorship, including:
•
continued support to the Orang Asli
primary school, Sekolah Kebangsaan
Sungai Pergam in Terengganu, by
funding 43 student bursaries through
the MyKasih ‘Love My School’
programme. These bursaries enabled
students to purchase daily canteen
meals and essential classroom items.
EnQuest Malaysia has supported the
school since 2019, previously funding
the refurbishment of the school
canteen, classrooms and roof, and
contributing to the redevelopment of
the school’s science laboratory;
•
in 2025, 14 local university students
were selected for internship
placements in a variety of disciplines,
including HSEA, Finance, Supply Chain
Management, Wells Delivery, Human
Resources, IT, Subsurface, Logistics
and Hydrocarbon Accounting;
•
working with the Amjad and Suha
Bseisu Foundation since 2019, EnQuest
has collaborated on a joint
sponsorship initiative to support
underprivileged students pursuing
undergraduate studies. Through this
partnership, six students have
graduated in disciplines including
geology and chemical, mechanical
and petroleum engineering at
Universiti Malaya, Universiti Teknologi
Malaysia and Universiti Teknologi
Petronas. The programme currently
supports four active scholarship
recipients, and efforts are underway
to identify additional candidates; and
•
collaboration with the Global Peace
Foundation to enhance living
circumstances for two indigenous
communities in Pahang, helping
around 80 families.
Vietnam
EnQuest’s team in Vietnam has focused
on several community and social
impact initiatives during 2025,
including:
•
providing 48 scholarships for school
and university students through the
Saigon Children Charity and the ‘Light
your hope’ scholarship foundation;
•
construction of classrooms at the Ba
Chuc kindergarten school, via the
Saigon Children’s Charity;
•
sponsorship of training courses in
newborn life support for healthcare
workers in Hue Central Hospital;
•
tuition for disadvantaged and
disabled children at the Huong
Duong Center in Binh Tho; and
•
construction of a bridge to shorten
the commute of students in the
Mekong Delta.
Brunei
Following the award of the Block C PSC
in Brunei Darusallam in July, EnQuest
completed two community projects:
•
The donation of teaching aids and a
filtered water dispenser to Kompleks
Rumah Kebajikan welfare home
in Subok
•
The donation of filtered water
dispensers to the Women and
Children Centre at RIPAS Hospital
Our people
At EnQuest, we recognise people are
critical to our success and we are
committed to ensuring the Company
remains a great place to work. We have
a strong set of Values that underpin our
way of working and provide a rewarding
work environment, with opportunities for
growth and learning while contributing
to the delivery of our strategy.
An inclusive workforce
We remain committed to providing an
inclusive culture that recognises and
celebrates difference and sees a
diverse culture as an enabler of
creativity and performance. Established
in 2021, the Group-wide diversity and
inclusion (‘D&I’) strategy, was updated
in 2024 to become a Diversity, Equity
and Inclusion (‘DE&I’) strategy. EnQuest
continues to focus on embedding the
DE&I values into Company culture and
making continuous efforts to foster an
environment that supports employee
engagement and demonstrates our
values across the Company. The DE&I
policy and plan can be found on the
Group’s website (www.enquest.com),
outlining our eight key commitments to:
•
understand the diversity of our
workforce;
•
challenge personal bias,
microaggressions and discrimination;
•
engage and educate our workforce
on DE&I;
•
recruit on merit and consider
diverse talent;
•
ensure that diverse talent is well
represented;
•
reinforce meritocracy in performance
evaluation and career advancement;
•
be influential and make real impact
on society; and
•
learn and continuously improve.
“We are committed to achieving SAFE
Results through comprehensive HSE
processes and resources,
empowering personal responsibility,
and the right to stop the job.”
Ian McKimmie
Interim General Manager, North Sea
Charitable donations
in 2025 ($000)
c.390
“At EnQuest, our
people will always
be our most
important asset.”
Amjad Bseisu
Chief Executive
58–59
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
The UK’s EnQlusion workforce group
promoted several initiatives during
2025, including continued support for
the Association for Black and Minority
Ethnic Engineers and running specialist
training to educate employees on
Neurodiversity in the Workplace.
EnQuest continues to be a member of
the OEUK D&I Special Interest Group.
Recruitment
Our people and organisational strategy
is to ensure that we have the right
people, in the right roles, driving
performance and delivering
efficiencies as we pursue our strategy.
We ensure that our processes are open
and transparent, providing equal
opportunities for all. We will continue
with this approach, recruiting
individuals based on merit and their
suitability for the role.
We remain committed to fair treatment
of people with disabilities in relation to
job applications. Full and fair
consideration is given to applications
from disabled persons where the
candidate’s particular aptitudes and
abilities are consistent with adequately
meeting the requirements of the job.
EnQuest has maintained our status as a
Disability Confident Committed
employer, formally recognising our
commitment to increase our
understanding of disabilities in the
workplace and supporting disabled
people to fulfil their potential.
During January 2025, EnQuest was an
exhibitor at a SmartSTEM event at the
University of Aberdeen. The event
welcomed over 280 pupils from schools
across Aberdeen City and Shire from
socio-economically challenged areas,
with the aim to inspire young students
to study and pursue careers in science,
technology, engineering and
mathematics (‘STEM’) disciplines.
In addition, EnQuest employees have
run initiatives alongside DYW
(Developing the Young Workforce)
where they presented at the
Engineering the Future event and
shared key information to help educate
secondary school students on
engineering and shared hands-on
practical work experience for them to
review. Our employees also supported
a variety of STEM initiatives at local
Aberdeen primary schools in
collaboration with AFBE (Association of
Black and Ethnic Minority Engineers.)
These examples reflect our
commitment to growth and learning
and exemplify our commitment to
community engagement and inspiring
future talent.
Ways of working and engagement
We have a strong set of Values and
high standards of business conduct,
which we expect our employees and
everyone we work with to demonstrate
and adhere to. Throughout 2025, we
continued to celebrate and recognise
those who had demonstrably lived our
Values through Values awards
presented at our Global Town
Hall events.
Rosalind Kainyah, Non-Executive
Director, was the Company’s formally
designated Non-Executive Director for
workforce engagement for 2025, having
taken over the role from EnQuest’s
Chairman, Gareth Penny, in October
2024. The Forum functions as a useful
interface between employees and
management for constructive two-way
dialogue. Areas discussed and
reviewed during the year included:
•
HSE Focus / LTIs;
•
Veri Energy and sustainability
activities;
•
employee matters and well-being;
•
fiscal challenges and political
landscape; and
•
acquisitions and opportunities for
EnQuest growth.
Our commitment to well-being
The mental and physical welfare of all
employees continues to be a major
focus across the business. During 2023,
a Mental Health and Well-being policy
was developed and launched with the
aim of protecting and maintaining the
health, safety and welfare of employees
by promoting positive health and
well-being in the workplace. In 2025 we
have continued this focus and in
conjunction with our occupational
health providers have delivered mental
health training for all employees.
We have a well-established Well-being
Committee, consisting of an active
membership from across the business.
The Committee is pivotal in developing
initiatives covering all aspects of
individual well-being such as Mental
Health Awareness week and
introducing dignity baskets in female
bathrooms, as well as social events
such as our annual children’s Christmas
party. In 2025, EnQuest once again
participated in the Aberdeen Corporate
Games and saw excellent involvement
from colleagues across the
organisation in a variety of sporting
events, even taking medals home in a
number of events. A number of
colleagues also took part in the
gruelling Banchory Beast Race in
conjunction with our charity partner,
CLAN. We frequently use our internal
social media channel to promote these
initiatives and others, such as those
targeted at physical health, including
pilates, nutrition, along with the annual
‘rig-run’ and ‘step count’ challenges
throughout the year.
Continued growth and learning
In line with UK legislation, EnQuest
continues to contribute to the UK
Apprenticeship Levy each year.
Contributions to the levy can be
reclaimed for specific training initiatives
and EnQuest has partnered with
SDC-Learn since 2023 to provide a
Vocational Leadership Programme. For
2025-26, EnQuest has specifically
targeted employees who aspire to and
demonstrate a high potential to grow
into a leadership or more senior
leadership role in the future. With
three cohorts commencing at different
levels during this period, the
programme will deliver a Vocational
Qualification in Management and a
Modern Apprenticeship Certificate
upon completion.
In Malaysia, the development of
offshore competencies has remained a
key focus during 2024 with a multi-
phase training programme
implemented with partner Institut
Teknologi Petroleum PETRONAS (INSTEP).
Office-based employees are provided
with the opportunity to undertake an
assignment at EnQuest’s London and
Aberdeen offices. In doing so they gain
an understanding of global business
expectations and enhance their
technical and professional skills. There
are currently two individuals from
Malaysia on secondment in the UK.
E-Learning remains a key tool in
delivering training to employees in
Malaysia with greater flexibility to meet
their individual training needs.
Succession planning for our business-
critical roles continued throughout 2025
to ensure we retain and develop
high-potential employees. We conduct
regular reviews to ensure the direction,
focus and development of employees
remain relevant and on track. We
continue to build our talent pipeline
through a blended approach which
supports top talent employees
becoming leadership ready. We have
developed targeted coaching and
mentorship alongside, secondments
and formal leadership workshops to
support this development.
In addition, a key part of the learning
and development agenda for 2025 has
been the creation of the organisation-
wide career progression framework.
The aim of this project has been to
establish a mapping of the career
paths available across all departments
of EnQuest and provide greater
transparency with our job descriptions.
This in turn will provide greater visibility
to employees on the potential career
journey that could be available to them
and thus better enable and support
their development discussions and
career planning. To date we have
completed career path frameworks for
both technical and support functions
across the business, including
Upstream, Supply Chain and Legal and
Commercial. We aim to complete the
Midstream framework during 2026.
Gender pay gap
When EnQuest published its first report
on the gender pay gap in 2017, this
highlighted a noticeable gap between
what the Group’s male and female
employees were being paid. Since then,
the Company has worked hard to
address and reduce the gap, from a
mean difference of men being paid
38.7% more in 2017 to 20.5% in 2025.
Compared to 2024, our mean gender
pay gap has decreased from 22.8% to
20.5% in 2025. Analysis of the pay
quartiles indicates that this
improvement is linked to shifts in the
gender distribution across the pay
structure during the year. In particular,
the upper pay quartile has seen a
notable increase in female
representation. The proportion of
women in this highest-paid quartile
rose from 5.2% in 2024 to 9.7% in 2025,
almost doubling compared with the
previous year. Although the numbers
remain relatively small, increased
female participation at the most senior
and highly paid levels has had a
meaningful, positive impact on
narrowing the overall gender pay gap.
Environmental, Social and Governance
Social
continued
Looking forward, we are committed to
improving our gender pay gap in 2026
and beyond. We will do this through
continued focus on diversity and
inclusion in all aspects of our business,
fair and balanced recruitment and
promotion processes and regular
assessment of skills and capability to
ensure we have the right people in the
right roles, regardless of gender,
ethnicity or socio-economic
background. For a breakdown of our
Director and workforce gender, please
see page 102.
Note:
1
Breakdown of percentages: Directors (three female, four male); senior managers (12 female, 45 male);
employees (157 female, 498 male). Senior management and total employee figures include EnQuest’s
employees in Bahrain, Malaysia, Vietnam, Brunei, Indonesia and the UK
2
Per Code Provision 23 – this is the gender balance of those in the senior management and their direct
reports
The chart below illustrates gender breakdown of EnQuest’s Directors and
workforce as at 31 December 2025:
100
80
60
40
20
0
Directors
Senior
managers
Employees
Direct reports of
senior managers
57.14%
42.86%
78.95%
21.05%
76.03%
23.97%
71.31%
28.69%
Female
Male
60–61
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Environmental, Social and Governance
Governance
The Board confirms that the Group
complies with the Financial
Reporting Council’s Guidance
on Risk Management, Internal
Control and Related Financial
and Business Reporting.
Governance
Robust Risk Management Framework
Risks and uncertainties
Management of risks and
uncertainties
Consistent with the Group’s purpose,
the Board has articulated EnQuest’s
strategic vision as: 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 seeks to balance its risk
position between investing in activities
that can achieve its near-term targets,
including those associated with
reducing emissions, and those which
can drive future growth with
appropriate returns, including
capitalising on any opportunities
that may present themselves, and
the continuing need to remain
financially disciplined.
In pursuit of its strategy, EnQuest has to
manage a variety of risks. Accordingly,
the Board has established a Risk
Management Framework (‘RMF’) to
enhance effective risk management
within the following Board-approved
overarching statements of risk appetite:
•
The Group makes investments and
manages the asset portfolio against
agreed key performance indicators
consistent with the strategic
objectives of driving top quartile
operational performance,
maintaining a strong balance sheet,
targeting transformational growth
and diversification of its asset base,
and pursuing new energy and
decarbonisation opportunities
•
The Group seeks to embed a culture
of risk management within the
organisation corresponding to the
risk appetite which is articulated for
each of its principal risks
•
The Group seeks to avoid reputational
risk by ensuring that its operational
and HSEA processes, policies and
practices reduce the potential for
error and harm to the greatest extent
practicable by means of a variety of
controls to prevent or mitigate
occurrence
•
The Group sets clear tolerances for all
material operational risks to minimise
overall operational losses, with zero
tolerance for criminal conduct
The Board reviews the Group’s risk
appetite annually in light of changing
market conditions and the Group’s
performance and strategic focus.
Senior management periodically
reviews and updates the Group Risk
Register based on the individual risk
registers of the business.
The Board also periodically reviews
(with senior management) the Group
Risk Register, an assurance map and
controls review, a Risk Report (focused
on identifying and mitigating the most
critical and emerging risks through a
systematic analysis of the Group’s
business, its industry and the global risk
environment), and a Continuous
Improvement Plan (‘CIP’) to ensure that
key issues are being adequately
identified and actively managed. In
addition, the Group’s Sustainability and
Risk Committee oversees the
effectiveness of the RMF and provides a
forum for the Board to review selected
individual risk areas in greater depth,
while the Audit Committee monitors
internal financial and IT-related controls
(for further information, please see the
Sustainability and Risk Committee
report on pages 120 to 121 and the Audit
Committee report on pages 102 to 109).
As part of its strategic, business
planning and risk processes, the Group
considers how a number of
macroeconomic themes may influence
its principal risks. These are factors
which the Group should be cognisant
of when developing its strategy. They
include, for example, long-term supply
and demand trends for oil and gas and
renewable energy, the evolution of the
fiscal regime, developments in
technology, demographics, the
financial, physical and transition risks
associated with climate change and
other ESG trends, and how markets and
the regulatory environment may
respond, and the decommissioning of
infrastructure in the UK North Sea and
other mature basins. These themes are
relevant to the Group’s assessments
across a number of its principal risks.
The Group will continue to monitor
these themes and the relevant
developing policy environment at an
international and national level,
adapting its strategy accordingly.
During 2025, and in preparation for
reporting against the updated Provision
29 of the UK Corporate Governance
Code (the ‘Code’) issued in January
2024, an in-depth review of the
principal risks facing the Company has
been undertaken. During this review, the
Directors have concluded several of the
principal risks are unchanged from
those described in the 2024 Annual
Report and Accounts. However, certain
risks have been refined to more
accurately capture the underlying risk
while others are no longer considered
principal in nature but remain part of
the Group’s wider risk universe and will
continue to be monitored. To reach this
conclusion, the Directors considered
the changes in the external
environment during the recent period
that could threaten the Company’s
business model, future performance,
liquidity, and reputation.
The risks that are no longer considered
principal in nature are: Competition;
Portfolio Concentration; International
Business; JV Partners; Reputation; and
Human Resources.
The Directors also considered
management’s view of the current risks
facing the Company. Subsequently,
reviews of the Group’s ‘Risk Library’,
which captures all risk areas faced by
the Group into several overarching risks
was undertaken. This review led to a
refined risk library of 11 overarching risks
(from 19 previously) which the Directors
and Management believe affords
appropriate focus to the key risks
impacting the Group, whilst avoiding
duplication. The associated ‘Risk
Bowties’, which are used to identify risk
causes and impacts, with these
mapped against preventative and
containment controls used to manage
the risks to acceptable levels (see
diagram on following page), have also
been refined. These Risk Bowties remain
a key element in assuring the
effectiveness of the Group’s material
risk controls and the 11 risks are to be
reviewed over a two-year period,
prioritising those risks that require a
new bowtie as well as retained risks
that are coming up for a two-yearly
review to ensure they remain fit
for purpose.
The Board, supported by the Audit
Committee and the Sustainability and
Risk Committee, has reviewed the
Group’s system of risk management
and internal control for the period from
1 January 2025 to the date of this report
and carried out a robust assessment of
the Group’s emerging and principal
risks and the procedures in place to
identify and mitigate these risks. An RMF
Performance report is produced and
reviewed at each Sustainability and Risk
Committee meeting in support of
this review.
Key Performance Indicators (‘KPIs’)
A
HSEA (LTI)
B
Production (Boepd)
C
Unit opex ($/Boe)
D
Cash generated by operations
($ million)
E
Cash capital and
abandonment expense
($ million)
F
EnQuest net debt ($ million)
G
Net 2P reserves (MMboe)
H
Emissions (tCO
2
e)
Read more in Our Strategy
Page 5
Our strategic focus
1
Managing assets to optimise and
grow production while exercising cost
control and capital discipline
2
Repurposing existing infrastructure
to deliver new energy and
decarbonisation opportunities at scale
3
Safely and efficiently executing
decommissioning activities
4
Managing our Balance Sheet while
pursuing selective, capability-led and
value-accretive acquisitions
See more in Our Strategy
Page 2
“As part of its strategic,
business planning
and risk processes,
the Group considers
how a number of
macroeconomic
themes may influence
its principal risks.“
62–63
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
EnQuest Risk Management Framework
What we monitor
Enterprise risk register
A summary of the Group’s key risks; prepared by
combining key risks identified from the asset and
functional risk registers with Group-level risks.
Risk landscape inputs/considerations
Comprises:
(a) long-term macro factors such as political risk; supply
and demand trends; climate change-related
financial, physical and transition risks; and the
decommissioning of infrastructure; and
(b) near-term, emerging and principal risks. These are
considered holistically on a backward and forward-
looking basis, alongside outputs from relevant
strategic reviews, and summarised in an annual Risk
Report presented to the Sustainability and Risk
Committee.
Asset and functional risk registers
A compilation of risks (including threats and
opportunities) and mitigating controls being managed
at an operational/functional level on a day-to-day basis.
Assessment
Risk causes; likelihood and impact; gross impact;
mitigating controls (preventative and containment);
net impact; risk appetite; improvement actions; and
risk owner.
Quarterly RMF performance report
Reviewed by leadership teams before being presented to
the Sustainability and Risk Committee and uploaded to
the Board portal.
Identified risks
Eight principal risks mapped from a ‘Risk Library’ of 11
overarching risks.
Continuous Improvement Plan
A summary of the key actions planned for continual
improvement of the RMF.
How we monitor
Board of Directors (pages 92 to 93)
Responsible for providing oversight of the Group’s control and risk management systems, reviewing key risks and
mitigating controls periodically. Approves the Group’s risk appetite annually and approves the Group’s going concern
and viability statements.
Audit Committee (pages 102 to 109)
•
reviews the effectiveness of the Group’s internal
financial and IT-related controls;
•
reviews the internal audit assurance programme; and
•
reviews and recommends for approval by the Board
the Group’s going concern and viability statements.
Supported by the Group’s Internal Audit function.
Sustainability and Risk Committee (pages 120 to 121)
•
supports the implementation and progression of the
Group’s RMF;
•
monitors the adequacy of containment and mitigating
controls, and progression of mitigation of risks;
•
undertakes in-depth analysis of specific risks and
considers existing and potential new controls;
•
conducts detailed reviews of key non-financial risks not
reviewed within the Audit Committee; and
• reviews HSE, technical and reserves matters.
Business leadership teams
• regularly review operating
performance against stretching
targets and agreed KPIs; and
• regularly review asset risk
registers and consider the results
of assurance audits over
operational controls.
Executive Committee
• frequently reviews Group
performance, including financial,
operating and HSE performance;
and
• periodically reviews the Enterprise
Risk Register and RMF
performance report.
HSEA Directorate
• regularly reviews the Group’s HSE
performance against stretching
targets, agreed KPIs and industry
benchmarks; and
• regularly reviews the HSE risk
register and considers the results
of assurance audits over
HSE controls.
Environmental, Social and Governance
Governance
continued
Near-term and emerging risks
The Group’s integrated approach to risk management
enables the Group to identify quickly, escalate and
appropriately manage emerging risks, and how these
ultimately impact on the enterprise-level risk and their
associated ‘Risk Bowties’. In turn, this ensures that the
preventative and containment controls in place for a given
risk are reviewed and remain robust based upon the
identified risk profile. It also drives the required prioritisation of
in-depth reviews to be undertaken by the Sustainability and
Risk Committee, which are now integrated into the Group’s
internal audit programme. During the year, eight Risk Bowties
were reviewed.
ONGOING GEOPOLITICAL SITUATION
The Group is monitoring the current situation in the Middle
East, focusing on personal safety for its people located in the
region. At the date of this report, EnQuest’s people are safe
and there has been no material disruption to our day-to-day
activities. The Group has also continued to assess its
commercial and IT security arrangements and does not
consider it has a material adverse exposure to the
geopolitical situation with respect to the conflicts in Western
Europe or the Middle East, although recognises that the
situations have caused oil price volatility. The Group continues
to monitor its position to ensure it remains compliant with any
sanctions in place.
GEOGRAPHICAL DIVERSIFICATION
The Group has successfully expanded its operational footprint
in Malaysia and the wider South East Asia region following the
acquisition of operations in Vietnam and the award of PSCs in
Indonesia and Brunei. The Board is cognisant that this
expansion creates a wider risk universe for the organisation,
although such risks are mitigated by extensive due diligence
(using in-house and external personnel) and actively
involving executive management and the Board in reviewing
commercial, technical and other business risks together with
mitigation measures. At an operational level and as part of
the integration processes, management reviews the control
environment in place to ensure compliance and
completeness, updating and/or replicating EnQuest’s existing
controls as necessary.
Climate change risks
While not considered an emerging risk or discrete risk in its
own right, given the focus on climate-related risks for energy
companies, EnQuest has provided further detail below on its
assessment of this risk within the Group’s Risk Library.
Additional information can be found in the Group’s Task Force
on Climate-related Financial Disclosures, starting on page 76.
CLIMATE CHANGE
RISK
The Group recognises that climate change concerns and
related regulatory developments could impact a number of
the Group’s principal risks, such as Price and Foreign
Exchange, Health, Safety and Environment, Access to Capital
and Liquidity and Political, Regulatory and Fiscal Risk, which
are disclosed later in this report.
APPETITE
EnQuest recognises that the oil and gas industry, alongside
other key stakeholders such as governments, regulators and
consumers, must all play a part in reducing the impact of
carbon-related emissions on climate change, and is
committed to contributing positively towards the drive to net
zero through the energy transition through reducing Scope 1
and Scope 2 emissions from existing operations. A
decarbonisation strategy is being pursued through EnQuest’s
wholly owned subsidiary, Veri Energy.
The Group’s risk appetite for climate change risk is reported
against the Group’s impacted principal risks, while a discrete
disclosure against the Task Force on Climate-related
Financial Disclosures can be found on pages 76 to 85.
MITIGATION
Mitigations against the Group’s principal risks potentially
impacted by climate change are reported later in this report.
The Group has an emissions management strategy and is
committed to a 10% continual reduction in Scope 1 and 2
emissions over three years against a rolling year-end
baseline. These targets are directly linked to organisation-
wide remuneration via the Group Performance Share Plan (for
further information, see the Directors’ Remuneration Report
starting on page 110).
Looking ahead, EnQuest is progressing significant
decarbonisation workstreams across its existing portfolio,
including a Flare Gas Recovery Project at Magnus, the New
Stabilisation Facility and long-term power solution at the
Sullom Voe Terminal (‘SVT’), and the potential for Kraken
flaring and emission reductions through a Bressay gas line to
power Kraken operations.
EnQuest has reported on all of the greenhouse gas emission
sources within its operational control required under the
Companies Act 2006 (see Strategic Report and Directors’
Report) Regulations 2013 and The Companies (Directors’
Report) and Limited Liability Partnerships (Energy and
Carbon Report) Regulations 2018 (see pages 124 to 126 for
more information).
Key business risks
The Group’s principal risks (identified from the ‘Risk Library’)
are those which could prevent the business from executing its
strategy and creating value for shareholders or lead to a
significant loss of reputation. The Board has carried out a
robust assessment of the principal and emerging risks facing
the Group at its February meeting, including those that would
threaten its business model, future performance, solvency
or liquidity.
Cognisant of the Group’s purpose and strategy, the Board is
satisfied that the Group’s risk management system works
effectively in assessing and managing the Group’s risk
appetite and has supported a robust assessment by the
Directors of the principal risks facing the Group.
Set out on the following pages are:
•
the principal risks and mitigations;
•
an estimate of the potential impact and likelihood of
occurrence after the mitigation actions, along with how
these have changed in the past year and which of the
Group’s KPIs could be impacted by this risk (see page 5 for
an explanation of the KPI symbols); and
•
an articulation of the Group’s risk appetite for each of these
principal risks.
Among these, the key risks the Group currently faces are
materially lower oil prices for an extended period (see ‘Price
and Foreign Exchange’ risk on page 70), and/or a materially
lower than expected production performance for a prolonged
period (see ‘Production’ risk on page 67 and ‘Reserves
Estimation and Replacement’ on page 69), which could
reduce the Group’s cash generation, which may in turn
impact the Company’s ability to comply with the
requirements of its debt facilities and/or execute
growth opportunities.
64–65
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
RISK
Oil and gas development, production and exploration
activities are by their very nature complex, with HSE risks
covering many areas, including major accident hazards,
personal health and safety, compliance with regulatory
requirements, asset integrity issues and potential
environmental impacts, including those associated with
climate change.
APPETITE
The Group’s principal aim is SAFE Results with no harm to
people and respect for the environment. Should operational
results and safety ever come into conflict, employees have
a responsibility to choose safety over operational results.
Every employee is empowered to stop operations for
safety-related reasons.
The Group’s desire is to maintain upper quartile HSE
performance measured against suitable industry metrics.
In 2025, EnQuest’s Lost Time Incident frequency rate (‘LTIF’) of
0.69, reported on page 56, represented a significant year-on-
year improvement (2024: 1.55). However, the Group never finds
it acceptable to incur LTIs and is working closely with the
contractors involved to ensure that everyone is aligned with
EnQuest’s safety culture, trained on equipment and
procedures and empowered to stop a task should a safer
method be identified. All safety events were subject to
thorough investigation and no systemic failure was identified
within EnQuest systems.
MITIGATION
The Group’s HSE Policy is fully integrated across its operated
sites and this enables a consistent focus on HSE. There is
a strong assurance programme in place to ensure that
the Group complies with its policy and principles and
regulatory commitments.
The Group maintains, in conjunction with its core contractors,
a comprehensive programme of assurance activities and has
undertaken a series of in-depth reviews into the Risk Bowties
that have demonstrated the robustness of the management
process and identified opportunities for improvement which
are implemented on a prioritised risk basis. The Group-
aligned HSE Continuous Improvement Plan promotes a
culture of accountability and performance in relation to HSE
matters. The purpose of this plan is to ensure that everyone
understands what is expected of them by having realistic
standards, governance, and capabilities to add value and
support the business. HSE performance is discussed at each
Board meeting and the mitigation of HSE risk continues to be
a core responsibility of the Sustainability and Risk Committee.
During 2025, the Group continued to focus on the control of
major accident hazards and SAFE Behaviours.
In addition, the Group has positive and transparent
relationships with the UK Health and Safety Executive and
Department for Energy Security and Net Zero, and the
Malaysian regulator, PETRONAS Malaysia Petroleum
Management.
Health, Safety and Environment (‘HSE’)
Potential impact
Medium (2024: Medium)
Likelihood
Medium (2024: Medium)
Change from last year
EnQuest respects the hazards associated with oil and
gas development and production in harsh
environments and has applied continued focus to the
safety and well-being of its people and assets. As a
result, the potential impact and likelihood remains in
line with 2024. Through our HSE processes, there is
continuous focus on the management of the barriers
that prevent hazards occurring. The Group has a
strong, open and transparent reporting culture and
monitors both leading and lagging indicators and
incurs substantial costs in complying with HSE
requirements. The Group’s overall record on HSE has
been good and is achieved by working closely and
openly with contractors, verifiers and regulators to
identify potential improvements through an active
assurance process and implement plans to close any
gaps in a timely manner.
Risk appetite
Low (2024: Low)
Link to strategy
1
2
3
4
Read more in Our Strategy
see Page 2
Related KPIs
A
B
C
D
E
F
G
H
Read more in Highlights
see Page 5
Environmental, Social and Governance
Governance
continued
RISK
The Group’s production is critical to its success and is subject
to a variety of risks, including: subsurface uncertainties; the
complexities of operating in a mature field environment;
potential for significant unexpected shutdowns; and
unplanned expenditure (particularly where remediation may
be dependent on suitable weather conditions offshore).
Lower than expected reservoir performance or insufficient
addition of new resources may have a material impact on the
Group’s future growth. Longer-term production is threatened
if low oil prices or prolonged field shutdowns and/or
underperformance requiring high-cost remediation bring
forward decommissioning timelines.
APPETITE
Since production efficiency and meeting production targets
are core to EnQuest’s business, the Group seeks to maintain
a high degree of operational control over producing assets
in its portfolio. EnQuest has a very low tolerance for
operational risks to its production (or the support systems
that underpin production).
MITIGATION
The Group’s programme of asset integrity and assurance
activities provide leading indicators of significant potential
issues, which may result in unplanned shutdowns, or which
may in other respects have the potential to undermine asset
availability and uptime. The Group continually assesses the
condition of its assets and operates extensive maintenance
and inspection programmes designed to minimise the risk of
unplanned shutdowns and expenditure.
The Group monitors both leading and lagging KPIs in relation
to its maintenance activities and liaises closely with its
downstream operators to minimise pipeline and terminal
production impacts.
Production efficiency is continually monitored, with losses
being identified and remedial and improvement
opportunities undertaken as required. A continual, rigorous
cost focus is also maintained. Life of asset production profiles
are audited by independent reserves auditors. The Group
also undertakes regular internal reviews. The Group’s
forecasts of production are risked to reflect appropriate
production uncertainties.
The Sullom Voe Terminal has a good safety record, and its
safety and operational performance levels are regularly
monitored and challenged by the Group and other terminal
owners and users to ensure that operational integrity is
maintained. Further, EnQuest is transforming the Sullom Voe
Terminal to ensure it remains competitive and well placed to
maximise its useful economic life and support the future of
the North Sea.
The Group is developing plans for installing the Ninian bypass
which will secure the export route for Magnus and continues
to explore the potential of alternative transport options and
developing hubs that may provide both risk mitigation and
cost savings.
The Group added diversified growth to its production base
through the accelerated delivery of gas from the Seligi 1b gas
project and the acquisition of the Block 12W production assets
in Vietnam and continues to consider new opportunities for
expanding production having been awarded PSCs in
Indonesia and Brunei during 2025.
Production
Potential impact
High (2024: High)
Likelihood
Medium (2024: Medium)
Change from last year
There has been no material change in the potential
impact or likelihood.
Risk appetite
Low (2024: Low)
Link to strategy
1
2
3
4
Read more in Our Strategy
see Page 2
Related KPIs
B
C
D
E
F
G
H
Read more in Highlights
see Page 5
66–67
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
RISK
The Group’s success will be partially dependent upon
the successful execution and delivery of potential future
projects that are undertaken, including development,
decommissioning, decarbonisation and new energy
opportunities in the UK.
APPETITE
The efficient delivery of projects has been a key feature of the
Group’s long-term strategy. The Group’s appetite is to identify
and implement short-cycle development projects such as
infill drilling, near-field tie-backs and facility modifications to
enable optimised performance and emission reduction
initiatives in its Upstream business, industrialise
decommissioning projects to ensure cost efficiency and
unlock new energy and decarbonisation opportunities
through innovative commercial structures and
redevelopment of SVT. While the Group necessarily assumes
significant risk when it sanctions a new project (for example,
by incurring costs against oil price or cost of emission
allowances assumptions), or a decommissioning programme,
it requires that risks to efficient project delivery are minimised.
MITIGATION
The Group has teams which are responsible for the planning
and execution of new projects with a dedicated team for
each project. The Group has detailed controls, systems and
monitoring processes in place, notably the Capital Projects
Delivery Process and the Decommissioning Projects Delivery
Process, to ensure that deadlines are met, costs are
controlled and that design concepts and Field Development/
Decommissioning Plans are adhered to and implemented.
These are modified when circumstances require and only
through a controlled management of change process and
with the necessary internal and external authorisation
and communication.
Within Veri Energy, the Group is working with experienced
third-party organisations and aims to utilise innovative
commercial structures to develop new energy and
decarbonisation opportunities.
The Group also engages third-party assurance experts to
review, challenge and, where appropriate, make
recommendations to improve the processes for project
management, cost control and governance of major projects.
EnQuest ensures that responsibility for delivering time-critical
supplier obligations and lead times are fully understood,
acknowledged and proactively managed by the most senior
levels within supplier organisations.
Project Execution and Delivery
Potential impact
Medium (2024: Medium)
Likelihood
Medium (2024: Medium)
Change from last year
The potential impact and likelihood remains
unchanged, reflecting the successful accelerated
delivery of the Seligi phase 1b gas project and strong
progress on Heather and Broom decommissioning
activities, the Ninian bypass and Bressay gas
development projects going through internal stage
gate reviews, and decommissioning programmes
and right-sizing projects at SVT remaining in the
execution phase.
Risk appetite
Medium (2024: Medium)
Link to strategy
1
2
3
4
Read more in Our Strategy
see Page 2
Related KPIs
A
B
C
D
E
F
G
H
Read more in Highlights
see Page 5
Environmental, Social and Governance
Governance
continued
RISK
Failure to develop contingent and prospective resources or
secure new licences and/or asset acquisitions and realise
their expected value.
APPETITE
Reserves replacement is an element of the sustainability of
the Group and its ability to grow. The Group has some
tolerance for the assumption of risk in relation to the key
activities required to deliver reserves growth, such as drilling
and acquisitions.
MITIGATION
The Group puts a strong emphasis on subsurface analysis
and employs industry-leading professionals.
All analysis is subject to internal peer-review process and,
where appropriate, external review and relevant stage gate
processes. All reserves are currently externally reviewed by a
Competent Person.
The Group has material reserves and resources at Magnus,
Kraken and PM8/Seligi. Some of the resources volumes can be
accessed through low-cost workovers, drilling and tie-backs
to existing infrastructure.
During 2025, the Group concluded the acquisition of Block 12W
in Vietnam and was awarded PSCs in Indonesia and Brunei.
The Vietnam acquisition added c. 7.5 MMboe of net working
interest 2P reserves and c. 4.9 MMboe of net working interest
2C resources. The Block 12W PSC being extended to 2034
provides the opportunity to access upside across Block 12W.
Estimated net working interest 2C resources across the DEWA
(Malaysia), Indonesia and Brunei PSCs is over 100 MMboe. The
Group continues actively to consider potential opportunities
to acquire new production resources and development
projects that meet its investment criteria.
Reserves Estimation and Replacement
Potential impact
High (2024: High)
Likelihood
Medium (2024: Medium)
Change from last year
There is no change to the potential impact or
likelihood of this risk. The accelerated delivery of the
Seligi Phase 1b project and completion of the
acquisition of Block 12W in Vietnam in 2025 are
balanced by other aspects, such as possible low oil
prices and higher development cost and declining
asset performance which accelerate cessation of
production and can potentially affect development
of contingent and prospective resources and/or
reserves certifications.
Risk appetite
Medium (2024: Medium)
Link to strategy
1
2
3
4
Read more in Our Strategy
see Page 2
Related KPIs
A
B
D
E
F
G
H
Read more in Highlights
see Page 5
68–69
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
RISK
A material decline in oil and gas prices adversely affects the
Group’s operations and financial condition as the Group’s
revenue depends substantially on oil prices. This risk also
includes the potential impacts of climate change on oil and
gas supply and demand and recognises that other
macroeconomic factors, such as foreign exchange and
carbon pricing, could present a material risk to the business.
APPETITE
The Group recognises that considerable exposure to this risk
is inherent to its business but is committed to protecting cash
flows in line with the terms of its reserve based lending
(‘RBL’) facility.
MITIGATION
This risk is being mitigated by a number of measures.
As operator of mature and underinvested producing assets,
the Group prioritises associated investments which deliver
near-term returns and is in a position to adapt and calibrate
its exposure to new investments according to developments
in relevant markets. The Group monitors oil price and foreign
exchange sensitivity relative to its commitments and its
assessment of the funds required to support investment in
the development of its resources. The Group will therefore
regularly review and implement suitable programmes to
hedge against the possible negative impact of changes in oil
prices and GBP:USD foreign exchange rates within the terms
of its established policy (see page 177). The Group’s RBL facility
also requires hedging of EnQuest’s entitlement sales volumes
(see page 177). To mitigate oil price volatility, the Directors
have hedged a total of 5.1 MMbbls from 1 April 2026 for the
next 12 months with an average floor price of $71.3/bbl and a
further 3.5 MMbbls in the subsequent 12-month period with an
average floor price of $64.4/bbl, in each case predominantly
utilising swaps. The Group has also entered into forward
contracts from 1 April 2026 covering £119 million at an average
GBP:USD rate of 1.328. The Directors, in line with Group policy
and the terms of its RBL facility, will continue to pursue
hedging at the appropriate time and price.
The Group has an established in-house trading and
marketing function to enable it to enhance its ability to
mitigate the exposure to volatility in oil prices and the cost of
emissions trading allowances, with the Treasury function
supporting management of foreign exchange exposure.
Further, the Group’s focus on production efficiency supports
mitigation against a low oil price environment.
The Group’s expansion into South East Asia has targeted
commodity diversification. The gas weighting of these
opportunities aligns with the Group’s strategic aim to reduce
its overall carbon intensity.
Price and Foreign Exchange
Potential impact
High (2024: High)
Likelihood
High (2024: High)
Change from last year
The potential impact and likelihood remain high,
reflecting the uncertain economic outlook, including
possible impacts from forecast surplus near-term
supply increases, geopolitical tensions and
associated sanctions, and the potential acceleration
of ‘peak oil’ demand.
The Group recognises that climate change concerns
and related regulatory developments are likely to
reduce demand for hydrocarbons over time. This may
be mitigated by correlated constraints on the
development of further new supply. Further, oil and
gas will remain an important part of the energy mix,
especially in developing regions.
Risk appetite
Medium (2024: Medium)
Link to strategy
1
2
3
4
Read more in Our Strategy
see Page 2
Related KPIs
B
C
D
E
F
G
Read more in Highlights
see Page 5
RISK
Inability to fund financial commitments or maintain adequate
cash flow and liquidity and/or reduce costs.
Significant reductions in the oil price, production and/or the
funds available under the Group’s RBL facility would likely
have a material impact on the Group’s ability to repay or
refinance its existing credit facilities and invest in its asset
base. Prolonged low oil prices, cost increases, including those
related to an environmental incident, and production delays
or outages, could threaten the Group’s liquidity and/or ability
to comply with relevant covenants. Further information is
contained in the Financial review, particularly within the going
concern and viability disclosures on pages 40 to 41.
APPETITE
The Group remains focused on maintaining a strong balance
sheet and liquidity, controlling costs and complying with
its obligations to finance providers while delivering
shareholder value.
MITIGATION
EnQuest has continued to focus on optimisation of its capital
structure and the maximisation of its available transactional
capacity. In November 2025, EnQuest signed a six-year senior
secured RBL facility totalling $800.0 million, comprising a
$400.0 million secured multi-currency revolving loan facility
and a $400.0 million secured multi-currency revolving letter of
credit (‘LoC’) facility. This facility, which replaces the previous
RBL, provides the Group with an enhanced capital structure
that is simple, flexible and aligned with its growth ambitions.
Further, during 2025, EnQuest expanded its Surety Bond
provider consortium.
Ongoing compliance with the financial covenants under the
Group’s reserve based lending facility is actively monitored
and reviewed. EnQuest generates operating cash inflow from
the Group’s producing assets and reviews its cash flow
requirements on an ongoing basis to ensure it has adequate
resources for its needs.
Where costs are incurred by external service providers, the
Group actively challenges operating costs. The Group also
maintains a framework of internal controls.
These steps, together with other mitigating actions available
to management, are expected to provide the Group with
sufficient liquidity to meet its obligations as they fall due.
Access to Capital and Liquidity
Potential impact
High (2024: High)
Likelihood
Medium (2024: Medium)
Change from last year
There is no change to the potential impact or
likelihood. The Group’s successful refinancing of its RBL,
expanded Letter of Credit facility, continued strong
relations with its Surety Bond provider consortium and
improved fiscal certainty in the UK, are balanced
against a volatile oil price environment, potential
increases in the cost of emissions trading allowances
and other factors such as climate change, other ESG
concerns and geopolitical risks, which could impact
investors’ and insurers’ acceptable levels of oil and
gas sector exposure.
Risk appetite
Medium (2024: Medium)
Link to strategy
1
2
3
4
Read more in Our Strategy
see Page 2
Related KPIs
B
C
D
E
F
G
H
Read more in Highlights
see Page 5
Environmental, Social and Governance
Governance
continued
70–71
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
RISK
Unanticipated changes in the political, regulatory or fiscal
environment, including those associated with climate
change, can affect the Group’s ability to deliver its strategy/
business plan and potentially impact revenue and
future developments.
APPETITE
Given the Group’s strategy to grow in the UK and
internationally, including in its nascent new energy business,
it must be tolerant of certain inherent exposure.
MITIGATION
It is difficult for the Group to predict the timing or severity of
such changes. However, through Offshore Energies UK and
other industry associations, the Group engages with
government and other appropriate organisations in order to
keep abreast of expected and potential changes. The Group
also takes an active role in making appropriate
representations as it has done throughout the
implementation period of the EPL.
The Group’s exposure to country-specific risks is reduced
through the Group’s strategy of diversifying into new
geographies, although it is recognised this does add
exposure to new political, regulatory or fiscal risks.
All business development or investment activities recognise
potential tax implications and the Group maintains
relevant internal tax expertise, seeking external advice
when appropriate.
At an operational level, the Group has procedures to identify
impending changes in relevant regulations to ensure
legislative compliance.
Political, Regulatory and Fiscal Environment,
including Climate Change risk
Potential impact
Medium (2024: High)
Likelihood
Medium (2024: Medium)
Change from last year
There has been no material change in the potential
likelihood, but the potential impact has reduced given
the successor UK “windfall tax” regime to the EPL has
been announced, with threshold implementation
prices above many external forecasts, and no
impending material regulatory changes, including
those associated with climate change, known
or anticipated.
EnQuest has entered into several new geographies
during 2025, although many of these remain at the
early stages of development which reduces the level
of risk to EnQuest.
Risk appetite
Medium (2024: Medium)
Link to strategy
1
2
3
4
Read more in Our Strategy
see Page 2
Related KPIs
A
B
C
D
E
F
G
H
Read more in Highlights
see Page 5
RISK
The Group is exposed to risks arising from interruption to, or
failure of, IT infrastructure. The risks of disruption to normal
operations range from loss in functionality of generic systems
(such as email and internet access) to the compromising of
more sophisticated systems that support the Group’s
operational activities. These risks could result from malicious
interventions such as cyber-attacks or phishing exercises.
APPETITE
The Group endeavours to provide a secure IT environment
that is able to resist and withstand any attacks or
unintentional disruption that may compromise sensitive data,
impact operations, or destabilise financial systems; it has a
very low appetite for this risk.
MITIGATION
The Group has established IT capabilities and endeavours to
be in a position to defend its systems against disruption
or attack.
A number of tools to strengthen employee awareness
continue to be utilised, including videos, presentations,
internal communications posts and poster campaigns.
The Audit Committee has reviewed the Group’s cyber-security
measures and its IT resourcing model, noting the Group has a
dedicated cyber-security manager. Work on assessing the
cyber-security environment and implementing improvements
as necessary has continued during 2025, with internal audit
reviews planned for 2026. A number of actions were
undertaken to further strengthen the Group’s controls,
including the following:
•
Enhanced governance of IT controls across EnQuest to
ensure standardised operations
•
Vietnam and Malaysia cyber security assessments against
EnQuest security policies conducted, with remediation for
identified gaps underway
•
Deployed a new security vulnerability management system
which identifies technical weaknesses enabling
management to assess the level of security risk and
systematically reduce it
•
Security strengthened through actions to improve system
access rights (including relevant user groups and
password updates)
IT Security and Resilience
Potential impact
Medium (2024: Medium)
Likelihood
High (2024: High)
Change from last year
There is no change to the impact or likelihood of this
risk, although with both the threat-actor landscape
and detective, preventative and containment controls
continuing to evolve.
Risk appetite
Low (2024: Low)
Link to strategy
1
2
3
4
Read more in Our Strategy
see Page 2
Related KPIs
A
B
Read more in Highlights
see Page 5
Environmental, Social and Governance
Governance
continued
72–73
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
EnQuest has a Code of Conduct which it requires all
personnel to be familiar with. The EnQuest Code of Conduct
sets out the behaviour which the organisation expects of its
Directors, managers and employees and of its suppliers,
contractors, agents and partners. We are committed to
conducting ourselves ethically, with integrity and to
complying with all applicable legal requirements; we routinely
remind those who work with or for us of our obligations in
this respect.
Our employees and everyone we work with help to create and
support our reputation, which in turn underpins our ability to
succeed. This Code of Conduct addresses our requirements
in a number of areas, including the importance of health and
safety, compliance with applicable law, anti-corruption,
anti-facilitation of tax evasion, anti-slavery, anti-competition,
sanctions, export and import controls, addressing conflicts of
interest, ensuring equal opportunities, combatting bullying
and harassment and the protection of privacy.
The Group’s induction procedures cover the Code of Conduct,
and the Group runs both ad hoc and scheduled periodic
training for personnel to refresh their familiarity with relevant
aspects of the Code of Conduct and specific policies and
procedures which support it such as the Group’s anti-
corruption programme. As part of its continual improvement
planning in the space of business conduct, in 2024 we
launched a ‘Handrails’ website which enhances accessibility
to materials and training on a broad range of ethics and
compliance topics relevant to personnel including on fraud,
money laundering, competition law and sanctions. The
website is also complemented by external training on the
subject matter.
As part of the Group’s Risk Management Framework, the
Board is supplied annually with an ‘assurance map’ that
provides an insight into the status of the main sources of
controls and assurance in respect of the Group’s key risk
areas (see pages 62 to 74 for further information on how the
Group manages its key risk areas). While this provides some
formal assurance as to how the Group reinforces its
requirements in respect of business conduct, the Board also
recognises the importance of promoting the right culture
within the Group and this remains an area of focus for
the Group.
The Code of Conduct also includes details of the independent
reporting line through which any concerns related to the
Group’s practices, or any suspected breaches of the Group’s
policies and procedures, can be raised anonymously and
encourages personnel to report any concerns to the legal
department. Where concerns are raised (whether through the
reporting line or otherwise), the legal representative, reporting
for this purpose to the Chair of the Audit Committee, is
required to look into the relevant concern, investigate and
take appropriate action. Concerns raised in relation to
potential conflicts of interest and safety practices, as well as
more routine interfaces with regulatory authorities, are also
reported to the Board and addressed appropriately.
The Code of Conduct includes a confirmation of EnQuest’s
commitments to adhere to applicable laws. The Group has
zero tolerance for practices that breach applicable laws and
expects the same of all with whom it has business dealings;
for example, in relation to procurement, by requiring suppliers
to confirm their commitment to various laws (including
anti-slavery, tax and employment) before being qualified to
supply the Group.
The Group has also supplemented its procedures to
provide further assurance that it is able to identify and
manage human rights risks in its supply chain. EnQuest
publishes its modern slavery statement on its website at
www.enquest.com, under the Environmental, Social and
Governance section, where further detail on EnQuest’s
corporate responsibility policies and activities, including the
area of business conduct, is also available.
Business conduct
We remain committed to
our Values, a non-negotiable
standard of ethics, acting with
integrity in all endeavours, and
compliance with the laws and
regulations in every jurisdiction
we operate.
Financial Statements
Corporate Governance
Strategic Report
EnQuest PLC Annual Report and Accounts 2025
74–75
Environmental, Social and Governance
Task Force on Climate-related Financial Disclosures
The Group supports good governance and transparency in general, and specifically in relation to climate change. The Board
recognises the societal and investor focus on climate change, and the desire to understand potential impacts on the oil and
gas industry through meaningful disclosures, such as those recommended by the Task Force on Climate-related Financial
Disclosures (‘TCFD’) and those required by the Companies Act via Climate-related Financial Disclosures (‘CFD’). Listing Rule 6.6.6R
(8) requires companies to include climate-related financial disclosures consistent with the TCFD recommendations. EnQuest
has complied fully with these requirements.
In 2025, EnQuest strengthened its alignment with the Task Force on Climate-related Financial Disclosures (‘TCFD’)
recommendations by reporting material Scope 3 value chain emissions, integrating the findings of the materiality assessment
undertaken in 2024, to support the identification of climate-related risks and opportunities under Strategy (b), and disclosing
quantified outcomes from the use of the IEA’s transition scenario analysis to assess corporate resilience.
The Group continues to demonstrate good practices and high standards of transparency consistent with TCFD
recommendations. EnQuest has completed all recommended TCFD disclosures in line with sector-specific guidance, as well as
the supplemental guidance for non-financial entities, including those applicable to the energy sector.
EnQuest recognises the rapidly evolving regulatory and ESG reporting landscape and will transition its climate-related
disclosures to align with IFRS S1 and IFRS S2 requirements ahead of the 2027 reporting period.
EnQuest disclosure
Additional/related
information
Governance
Disclose the
organisation’s
governance around
climate‑related risks
and opportunities
EnQuest’s purpose is to provide creative solutions through the energy transition.
As such, climate-related risks and opportunities are embedded across the
organisation, from governance structures at Board level through to asset-level
planning and operational delivery. These considerations directly influence
executive and workforce incentives, with emission reductions an important part
of both management’s and the wider organisation’s variable remuneration.
The Board provides strategic oversight of climate-related risks, opportunities, and
transition planning. It reviews progress against emissions-reduction objectives,
approves climate-aligned capital investments, and ensures alignment between
the Group’s long-term strategy and evolving regulatory and market expectations
across the UK and international jurisdictions.
The Executive Committee is responsible for implementing the Board’s climate
strategy, ensuring integration across functions, including operations, commercial,
technical, financial planning, and risk management. Operational teams identify
and mitigate climate-related risks through asset-level controls, engineering
studies, and emissions-reduction initiatives.
In 2023, EnQuest established Veri Energy, a wholly owned subsidiary of EnQuest
dedicated to the development and delivery of the Group’s renewable energy and
decarbonisation projects. Veri Energy provides specialist leadership in areas such
as carbon capture and storage (CCS), electrification, and e-fuels, supporting the
Group’s transition strategy and enhancing its resilience to long-term climate risk.
An organogram outlining the Group’s Risk Management Framework can be found
on page 64.
See pages
48 to 55
(Environmental), 62
to 74 (Risks), 86 to
89 (s172), 102 to 109
(Audit Committee
report), 110 to 119
(Directors’
Remuneration
Report), 120 to 121
(Sustainability and
Risk Committee
report) and 122 to
125 (Directors’
report)
(a) Describe the Board’s oversight of climate-related risks and opportunities.
The Board has ultimate responsibility for climate-related risks and opportunities, which form a standing agenda item. Climate
issues are reviewed at each of the five scheduled Board meetings through strategic discussions, budgeting, performance
monitoring and approval of climate-aligned investments.
The Sustainability and Risk Committee, a dedicated sub-Committee of the Board, has specific climate-related responsibilities
incorporated into its terms of reference, including oversight of climate risks, decarbonisation activities, and associated targets
and milestones. The Committee generally meets four times per year and reviews performance against emissions reduction
targets, the RMF performance report and the Group’s climate-related disclosures. A designated Committee member sponsors
any approvals that require Board review.
The Board receives regular operational and financial updates that include progress on renewable-energy and decarbonisation
projects and monitors performance against emissions-reduction targets. Management executes climate strategy, with
oversight maintained through reporting from the Executive Committee and functional leads. Climate objectives are reflected in
remuneration via the Company Performance Contract and the Performance Share Plan.
The Board and management remain informed on emerging climate-related risks and opportunities through engagement with
advisers, investors and industry bodies such as Brindex and Offshore Energies UK.
In 2024, EnQuest completed a materiality assessment with support from Wood Mackenzie, aligned with GRI and IOGP. This
enabled the Group to prioritise material sustainability topics and strengthen its disclosure and risk-mitigation approach.
(b) Describe management’s role in assessing and managing climate-related risks and opportunities.
The CEO holds ultimate responsibility for assessing and managing climate-related risks and opportunities across the Group,
supported by the CEO of Veri Energy, the CRO, the Director of HSE & Wells, and the Executive Committee.
Management oversight is delivered through established governance forums, including the Executive Committee, Operations
Committee, Director of HSE & Wells, and the Sustainability & Risk Committee, which routinely review risk registers, emissions
performance and progress on decarbonisation initiatives.
The CRO oversees climate-related risks within the Group’s Risk Management Framework (‘RMF’), with support from the Director of
HSE & Wells. Climate risks and opportunities are embedded alongside other principal risks and assessed through consistent
Group-wide processes and controls.
The Board and Audit Committee review the RMF annually, challenging the completeness and effectiveness of identified
climate-related risks, opportunities and controls, and ensuring alignment with evolving regulation and stakeholder expectations.
The Executive Committee, Operations Committee and Director of HSE & Wells regularly review performance against the Group’s
risk register, including emissions and decarbonisation progress. The CFO ensures climate-related impacts are appropriately
reflected in the financial statements, including assumptions relating to future oil prices, emissions-certificate prices and
emissions-reduction project economics.
Emission reduction is embedded in departmental and corporate KPIs, ensuring climate-related mitigation is integrated into
day-to-day decision-making. Climate considerations also inform business-development screening, including resilience testing
and carbon-cost exposure.
The Group’s energy management system governance framework sets out the approach to emissions measurement, reporting
and opportunity identification. A dedicated working group evaluates and implements economically viable emissions-reduction
initiatives, reporting to the Executive Committee and updating the Sustainability & Risk Committee at each scheduled meeting.
Regulatory, legal, capital-markets and competitive developments are monitored by the legal, commercial, company secretariat,
investor relations and communications teams, with updates provided to management and the Board as required. The
sustainability function prepares TCFD-aligned disclosures and conducts climate-scenario analysis to test portfolio resilience.
Operating, technical and environmental teams support asset-level decarbonisation delivery. Initiatives implemented during
2025 are recorded within Emission Reduction Action Plans (‘ERAPs’), with near-term opportunities tracked through an opportunity
hopper to support prioritisation and delivery.
76–77
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Environmental, Social and Governance
Task Force on Climate-related Financial Disclosures
continued
EnQuest disclosure
Additional/related
information
Strategy
Disclose the actual
and potential
impacts of climate‑
related risks and
opportunities on the
organisation’s
businesses, strategy,
and financial
planning where such
information is
material
EnQuest’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 energy transition. The Group’s integrated business model spans
the full energy transition landscape and shapes how climate-related risks and
opportunities may affect its businesses, strategy, and financial planning.
•
Upstream
activities focus on responsibly optimising production to meet current
energy demand while managing emissions and operating within an evolving
regulatory and carbon-pricing environment. Climate-related transition risks
may impact operating costs and investment economics through emissions
regulation and carbon pricing mechanisms, which are mitigated through
operational efficiency initiatives and emissions reduction programmes
•
Midstream
activities involve the right-sizing and decarbonisation of existing
infrastructure, creating optionality for Veri Energy to repurpose assets for
renewable energy and decarbonisation opportunities. This provides potential
strategic upside over the medium to long term as energy systems transition
•
Decommissioning
activities manage end-of-field life and post-cessation
operations, with climate-related considerations influencing the timing, cost and
execution of decommissioning programmes. EnQuest’s experience in late-life
asset management provides resilience against transition-related risks in
this phase
This integrated business model incorporates the Group’s plans for transitioning to
a lower-carbon economy and provides mitigation against the climate-related
transition risks identified below. Unless stated as ‘not material’, these risks have
the potential to result in substantive financial or strategic impacts if not
appropriately managed.
Investment decisions are reviewed by the Group’s Investment Committee, with the
Sustainability and Risk Committee providing additional challenge where
climate-related risks or opportunities are relevant. This ensures climate factors are
embedded in capital allocation and strategic decision-making.
Climate impacts are assessed primarily through potential NPV effects, evaluated
during the annual planning and budgeting cycle and on an ad hoc basis for
specific risks or opportunities. Climate considerations are integrated alongside
assumptions on commodity prices, carbon costs and project economics.
While all climate-related risks are assessed, the Group recognises that exposure
to oil, gas and carbon price volatility remains the fundamental business risk.
Climate risks and opportunities are therefore managed proportionately within
this broader commercial context to maintain disciplined value creation and
financial resilience.
See pages 5 to 17
(KPIs, Chairman
and CEO
statements), 32 to
33 (Veri Energy
review), 36 to 41
(Financial review),
48 to 55
(Environmental), 62
to 74 (Risks) and
140 (Financial
statements)
(a) Describe the climate-related risks and opportunities the organisation has identified over the short-, medium-, and
long-term.
EnQuest has offshore oil and gas assets located in the UK and South East Asia. Climate-related risks and opportunities have
been assessed jointly across both geographies and for the oil and gas sector, reflecting the similarity in asset characteristics,
regulatory exposure and transition dynamics. Where specific risks or opportunities differ by geography or asset, these are
identified in the table on the following page.
For the purposes of assessing climate-related risks and opportunities, EnQuest applies the following time horizons:
•
Short term:
within one year, aligned with the Group’s budgeting cycle and assessment of going concern
•
Medium term:
one to three years, aligned with the Group’s viability assessment period and detailed business planning horizon
•
Long term:
beyond three years, aligned with life-of-field assessments and long-term price and scenario analysis
In the long term, EnQuest tests asset resilience against its internal price assumptions as well as the Stated Policies Scenario
(‘STEPS’) and Net Zero Emissions by 2050 (‘NZE’) scenarios.
Across these time horizons, the Group has identified a range of climate-related transition risks, including those associated with
carbon pricing, emissions regulation, changing investor and lender expectations, and potential shifts in energy demand.
Climate-related opportunities have also been identified, particularly in relation to emissions reduction initiatives, operational
efficiency improvements, and the repurposing of existing infrastructure to support renewable energy and wider decarbonisation
opportunities through Veri Energy.
EnQuest assesses the potential impact and likelihood of identified climate-related risks and opportunities using a combination
of quantitative and qualitative measures. This approach is in line with established enterprise risk management practices and is
embedded within the Group’s Risk Management Framework. Given that neither the Group’s business, nor over-arching climate
science has changed materially over the past year, the climate-related risks and opportunities presented in the table on the
following page are consistent with the Group’s 2024 TCFD disclosure.
Material Risk type
Climate-related risk description
EnQuest risk management
Market
(all geographies and timeframes unless otherwise stated)
•
Changes in global demand for oil and gas, driven by the
energy transition and associated policy measures, may
affect the Group’s operations, revenues and financial
condition. As the Group’s revenue is substantially
dependent on oil prices, the long-term impact of climate
change on oil demand and the corresponding effect on
commodity prices is considered by EnQuest to be the most
material climate-related business risk
• Emissions trading allowances may increase operating
costs, particularly in the UK, where regulatory requirements
differ from those in Malaysia
•
Access to capital may be affected by market and investor
sentiment, interest rate movements, and evolving
ESG-related expectations, which could influence the
Group’s ability to raise capital on acceptable terms (see
Access to Capital and Liquidity risk on page 71)
• Supply-side constraints, arising from increased
competition for equipment and services as supply chains
adapt to support alternative energy sectors, could increase
costs and/or delay work programmes, potentially
impacting revenue generation over the long term
• The Group’s planning and investment decision-making
processes are designed to remain resilient under low oil-price
scenarios and incorporate an explicit carbon cost associated
with forecast emissions, reflecting transition risks and carbon
pricing considerations (see metrics and targets (a) –
Transition risks and carbon prices)
•
The Group actively monitors current and forward oil prices
(see Price and Foreign Exchange risk on page 70) through its
Marketing and Trading function, which is also responsible for
the procurement of emissions trading allowances, ensuring
active management of transition-related market exposures
(see metrics and targets (a) – Transition risks and
carbon prices)
•
EnQuest closely monitors and manages its funding position
and liquidity throughout the year, (see Access to Capital and
Liquidity risk on page 71). The Group’s renewable energy and
decarbonisation opportunities, including those pursued
through Veri Energy, have been a relevant consideration
in attracting new investors, as well as within the Group’s
recent refinancing activities and broader capital
market engagement
•
The Group maintains active relationships with key
stakeholders, including governments, regulators, financial
institutions, advisers, industry participants and supply
chain counterparties, to monitor market developments
and respond to emerging transition-related risks
and opportunities
Policy and legal (all geographies)
• Regulatory or legislative changes, including emissions
trading schemes and flaring allowances, may require
facility modifications and could expose the Group to
regulatory sanctions, fines or litigation risk (medium
and long term)
•
Country-level policies, including net zero targets, may
increase capital investment requirements to comply with
evolving regulatory standards (medium to long term)
•
Increased direct and/or indirect taxation may impact
operating costs and project economics (long term)
•
Each of the above could require additional capital
investment and may result in lower returns compared with
traditional projects or increased operating costs
• Targeted emission reductions and assessing opportunities
to reduce flaring and other emission sources (see page 126)
(see metrics and targets (a) – Scope 1, 2 and 3 absolute
emissions and emissions intensity)
•
In the UK, the Energy Profits Levy includes incentives for
decarbonisation investments, which the Group seeks to utilise
where economically viable (see Metrics and Targets (a) –
climate-related opportunities)
•
The Group maintains active relationships with government
and regulatory bodies across its operating jurisdictions
•
EnQuest engages with a range of external advisers and
appropriate third-party institutions to support regulatory
awareness, advance planning and integration of
requirements, ensuring ongoing compliance
78–79
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Environmental, Social and Governance
Task Force on Climate-related Financial Disclosures
continued
Material Risk type
Climate-related risk description
EnQuest risk management
Reputation
(all geographies and timeframes, unless otherwise noted)
•
Negative perception of the oil and gas industry
• Lack of credible transition plan
•
Failure to adhere to regulatory or legislative requirements
(medium and long term)
•
The perception of the oil industry has already impacted
access to, and the cost of capital. In the longer term, the
above risks could impact the willingness of counterparties
to transact with EnQuest, increasing costs and the
availability of a skilled workforce, leading to higher costs
and/or lower revenues, or regulatory or legal action
•
Development of Veri Energy linked to reward (see metrics
and targets (a) – Scope 1, 2 and 3 absolute emissions and
emissions intensity, Climate-related opportunities, Capital
deployment and Remuneration)
•
Clear and credible emission reduction targets linked to
reward (see metrics and targets (a) – Scope 1, 2 and 3
absolute emissions and emissions intensity,
and Remuneration)
• Continued engagement with all stakeholders, including
participation in credible climate initiatives, such as the CDP
survey and submission of Emission Reduction Action Plans
(‘ERAP’) to the North Sea Transition Authority
•
Emissions Management Team that develops and drives
continual improvement on Scope 1 and 2 emission reduction
opportunities in line with the Group’s overall targets (see
metrics and targets (a) – Scope 1, 2 and 3 absolute emissions
and emissions intensity)
•
Sustainability team is responsible for development of Group
reporting on Scope 3, including verified reporting on
Categories 5, 6, 7 and 11 during 2025 (see metrics and
targets (a) – Scope 1, 2 and 3 absolute emissions and
emissions intensity)
• Regular asset-level emissions measurement, monitoring and
reporting with timely corrective action taken if necessary (see
metrics and targets (a) – Scope 1, 2 and 3 absolute emissions
and emissions intensity, Transition risks and carbon prices
and Capital deployment)
•
High standards of business conduct (see page 75)
Technology (all geographies, medium to long term)
• Alternative, lower-emission products and services could
accelerate the transition away from oil and gas,
impacting demand
•
Costs of new technologies could limit the timing
and economics of existing oil and gas and
decarbonisation projects
•
Carbon capture and storage studies have identified the
potential to store up to 10mtpa of CO
2
from stranded emitters
in depleted North Sea reservoirs, while EnQuest’s
electrification and hydrogen ambitions could harness
renewable energy to help decarbonise offshore
developments and other industries, respectively (see metrics
and targets (a) – Climate-related opportunities and
Capital deployment)
•
Continued engagement with relevant new energy and
decarbonisation stakeholders, including potential strategic
and financial partners (see metrics and targets (a) –
Climate-related opportunities and Capital deployment)
• Continued engagement with suppliers, requiring provision
of services with a lower emissions footprint (see metrics and
targets (a) – Climate-related opportunities and
Capital deployment)
Physical
Acute (all geographies, short and medium term)
• Adverse and/or severe weather (storms, cyclones,
extreme heat or cold) resulting in asset downtime and
impacting revenue, or increasing health and safety risk
to staff
•
Action and response plans, including effective supply change
management, to manage risks and extent of downtime to as
low as reasonably possible (see metrics and targets (a) –
Physical risks)
Chronic (all geographies long term)
•
Rising sea levels, tidal impacts and other extreme
weather causes extensive/irreparable damage to
assets impacting capital and/or operating costs or
early decommissioning of assets
•
EnQuest considers these risks to be not material given
the Group’s focus on asset integrity and the expected
remaining life of its assets see metrics and targets (a) –
Physical risks)
With EnQuest’s business model spanning the entire energy transition spectrum, the Group is well positioned to assess and
pursue several climate-related opportunities.
Opportunity type
Climate-related opportunities
EnQuest action
Energy source
(long term and
UK‑only at
present)
• Use of lower emission sources
of energy
• Shift towards decentralised energy
generation
• Use of supportive policy incentives
• Use of new technologies
•
Progressing the potential to facilitate the electrification
of nearby offshore oil and gas assets and
planned developments
• Assessing onshore wind potential on Shetland
•
Commencement of project to deliver new grid-connected
power solution for Sullom Voe Terminal (‘SVT’)
•
Pre Feed collaboration with EnQuest and the NZTC, to develop a
private wind to liquid e-fuel system which effectively managed
renewable power intermittency
•
Progressing gas tie-back from Bressay to Kraken to displace
diesel as Kraken FPSO primary fuel
•
Completion of modifications to the Heather asset power
generation equipment to minimise emissions during
decommissioning
Resilience (all
geographies
and timeframes,
unless otherwise
stated)
•
Resource substitutes/diversification
(UK-only at present)
• Participation in renewable energy
programmes and adoption of
energy efficiency measures
• Access to M&A opportunities: Noting
other industry participants need to
dispose of assets to meet their own
ESG targets
• Strengthened climate change oversight through the
introduction of an Energy (Emission) Management System –
Structure & Governance procedure. The procedure itself is
structured to align with the internationally recognised structure
for an energy management system in relation to ISO 50001
•
Pursuing carbon capture and storage, electrification and green
hydrogen production opportunities at scale at SVT (long term)
•
New development opportunities to be assessed in terms of low
emission power generation (medium term)
•
The Group maintains relationships with key stakeholders,
including regulators, financial institutions, advisers and
industry participants
Products and
services (all
geographies
and timeframes,
unless otherwise
stated)
• Development and/or expansion of
low emission goods and services
(long term, except for supplier
engagement which is all
timeframes)
• Ability to diversify business activities
(long term)
•
Pursuing carbon capture and storage which will store
up to 10mtpa of CO
2
from stranded emitters in depleted North
Sea reservoirs
•
Assessing the potential to facilitate the electrification of nearby
offshore oil and gas assets and planned developments
•
Exploring the potential for harnessing the advantaged natural
wind resource around Shetland to produce e-fuels and
derivatives to deliver levelised cost of e-fuel competitive with
imports to support the decarbonisation of a number
of industries
•
Continued engagement with suppliers, requiring provision of
services with a lower emissions footprint to ultimately improve
efficiencies and reduce costs
Market
(long term and
UK‑only)
• Access to new markets
• Use of supportive policy incentives
•
Pursuing carbon capture and storage, electrification and green
hydrogen production opportunities at scale at SVT
Resource
efficiency
(all geographies
and timeframes)
•
Use of more efficient production
and distribution processes
• Use of recycling
•
Focused on absolute emission reductions in all operations (see
metrics and targets section)
•
Measurement of waste generated in operations, with 2024
reporting in line with Category 5 Scope 3 emissions (see metrics
and targets section)
•
Assessment of options to repurpose existing infrastructure prior
to any decision to cease production and begin asset
decommissioning
• Decommissioning business seeks to maximise reuse
and/or recycling
80–81
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
200%
150%
100%
50%
-50%
-100%
-150%
Base Case
Stated Pledges
IEA Net Zero
Net asset value
Voluntary Carbon Costs
0%
Asset Value relative to EnQuest Base Case NAV
Environmental, Social and Governance
Task Force on Climate-related Financial Disclosures
continued
(b) Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and
financial planning.
EnQuest incorporates macroeconomic and climate-related themes into its strategic planning and risk management. Oil, gas
and carbon price sensitivity is assessed as the Group’s most financially material climate-related risk, recognising climate
change as a key long-term price driver. Resilience is tested against IEA, STEPS, and NZE price assumptions, with short- and
medium-term sensitivities reviewed in going concern and viability assessments.
The Marketing and Trading function optimises production sales, hedging, and purchasing of UK ETS allowances. UK ETS
allowances are forecast to represent c.5% of 2025 operating costs. Potential oil price impacts on asset carrying values are
detailed in Note 2 of the financial statements.
The Group closely monitors cash, liquidity and covenant headroom, using scenario variance analysis to identify potential
pressures. Climate-related financial risks considered include reduced access to, or higher cost of, capital, insurance and
decommissioning surety as investor and insurer appetite for oil and gas declines. As financing outcomes are influenced by
multiple external factors, isolating the climate-related component is challenging. Discount-rate sensitivities (reflecting cost of
capital) are provided in Note 2.
EnQuest continues to execute value-accretive acquisitions as majors rebalance portfolios. This includes expanding operating
presence in South East Asia through the 2025 acquisition of an office and operational base in Vietnam. For new operated assets,
EnQuest integrates clear emissions-reduction plans and applies an internal carbon price to acquisition economics, including in
markets without formal carbon pricing.
Recent emissions-reduction progress includes sanctioning the Magnus Flare Gas Recovery project and advancing regulatory
approval for a Bressay gas-well tieback expected to materially cut Kraken FPSO emissions. Broader decarbonisation is centred
on Sullom Voe Terminal (‘SVT’), where EnQuest is progressing major emissions-reduction projects, including the New Stabilisation
Facility and a grid connection, expected to reduce site emissions by more than 90%. These enable longer-term CCS,
electrification (via onshore wind) and e-fuels opportunities through Veri Energy, positioning SVT as a transition-focused hub.
The Group is committed to net-zero Scope 1 and 2 emissions by 2040 and has established rolling three-year targets to reduce
emissions by 10%, linked to reward. Against a 2022 baseline, which was adjusted to include pro rata Vietnam emissions, 2025
Group emissions were 4.7% lower.
EnQuest also tracks progress against UK NSTD milestone reductions of 10% by 2025, 25% by 2027 and 50% by 2030; by the end of
2025, UK Scope 1 and Scope 2 emissions were 46% below the 2018 baseline, placing the Group well ahead of the interim NSTD
targets. All milestones sit within the medium-to-long-term planning horizon.
(c) Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios,
including a 2°C or lower scenario.
As part of the 2025 full-year results process, the Group reassessed the resilience of its portfolio using updated climate-related
scenario analysis. This included commodity price and emissions-cost assumptions under two IEA scenarios: the Stated Policies
Scenario (‘STEPS’), and Net Zero Emissions (‘NZE’). Oil prices remain the most material driver of financial outcomes.
The NZE scenario reflects an accelerated global transition to achieve net zero CO
2
emissions by 2050, consistent with limiting
warming to 1.5°C.
Under NZE, the Group’s projections show negative free cash flow, driven by sharper demand decline, lower prices, and higher
emissions-related costs.
STEPS reflects today’s enacted and developing energy and climate policies, including existing policy intentions supported by
markets and infrastructure. Under STEPS, the Group continues to generate positive free cash flow and delivers 160% asset value
uplift relative to the base case.
As outlined in the Group’s Viability Statement (see page 40), even under a Plausible Downside Case, the Group is able to operate
as a going concern and meet its financial and operational obligations. Regardless, the Group’s business model supports
adaptability to a changing external environment. Short cycle investment opportunities reduce the risk of stranded assets in the
upstream portfolio, while the Group continues to expand into renewable energy and decarbonisation solutions through the
activities of Veri Energy.
The Group’s strategy remains resilient under the STEPS scenario which is aligned with <2°C, while NZE highlights the pressures
associated with an accelerated 1.5°C transition. Given the likelihood of each scenario assessed, the Board is satisfied that the
Group’s strategy is resilient in the medium and long term.
Risk management
EnQuest disclosure
Additional/related
information
Disclose how the
organisation
identifies, assesses,
and manages
climate‑related risks
The Group has robust risk management and business planning processes that
are overseen by the Board, the Sustainability and Risk Committee and the
Executive Committee to identify, assess and manage climate-related risks,
while the Audit Committee oversees the effectiveness of the Risk Management
Framework. The risk landscape inputs and considerations are outlined on page
62 and cover long-term macro factors and near-term and emerging risks.
See pages 62 to 73
(Risks) and 120 to
121 (Sustainability
and Risk
Committee report)
(a) Describe the organisation’s processes for identifying and assessing climate-related risks.
The Group’s RMF is embedded in all levels of the organisation with asset, regional and functional risk registers aggregating to an
enterprise risk register, as outlined below, identifying relevant threats and how they are mitigated, while the adequacy and
efficacy of controls in place are themselves also monitored. This integration enables the Group to quickly identify, escalate and
appropriately manage emerging risks, with a quarterly RMF report reviewed by leadership teams and presented to the
Sustainability and Risk Committee. All risks are assessed based on their estimated potential impact and likelihood with respect
to people, environment, asset/business and reputation (‘PEAR’) on a pre- and post-mitigation basis, with judgements reviewed
by peers and/or management as appropriate.
The Group is targeting net zero in respect of Scope 1 and Scope 2 emissions by 2040 and seeks to ensure that suitable and
sufficient controls are in place to deliver against its environmental, social, governance (‘ESG’) strategy. In 2024, EnQuest
undertook a materiality assessment with reference to GRI and IOGP material sustainability topics for the oil and gas industry. The
materiality assessment has enabled EnQuest to refresh its ability to articulate and disclose climate-related risks and
opportunities, in keeping with the evolving sustainability disclosure landscape.
EnQuest uses Hurdle Risk as the risk management tool for identification, measurement and mitigation of risks and requires an
assessment of value associated with a given risk. The Risk Management Process takes place across four key areas: Group,
Region, Asset and Functional:
Group level
– An Enterprise Risk Register and Risk Report provide the Board and executive management with a single view of risk
across the Group to aid strategic decision making. This reflects the overall Risk Management Strategy and responses to
individual risks, including climate-related risks, with a focus on reporting risks that are critical from a decision-making
perspective. Critical risks are those that are assessed as having the greatest potential impact and likelihood with respect to PEAR
on a pre- and post-mitigation basis.
Region level
– Risk registers are available for the North Sea and Malaysia. These registers include details of all relevant
operational, execution, HSE, organisational, financial, legal and contractual risks facing each of the business units.
Asset level
– Risk registers are developed for all operated assets. These registers include details of all relevant operational,
executional, HSEA, organisational, financial, legal and contractual risks facing each asset.
Functional level
– A risk register is developed for any improvement opportunities and deficiencies in the risk controls for the
legal, commercial, HSEA, organisational, financial and business services risk categories. The functional assessments review the
effectiveness of policy and management systems in place and identify critical gaps and/or areas of non-compliance within
the Group.
Climate-related risks are classified in alignment with TCFD’s description of transition and physical risks:
Transition risks
– risks related to the transition to a lower-carbon economy, including policy and legal, technology, markets
and reputation.
Physical risks
– risks related to the physical impacts of climate change, including event-driven risks such changing severity
and/or frequency of extreme weather events.
EnQuest identifies and manages environmental aspects and risks through its Environmental Management System, using the
Environmental Aspects and Impacts Identification Procedure and associated registers. Asset- and project-specific registers are
82–83
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Environmental, Social and Governance
Task Force on Climate-related Financial Disclosures
continued
developed through systematic reviews of operational activities, defining controls and improvement actions across the full
lifecycle from inception to decommissioning. Reviews are undertaken by competent personnel using workshops, meetings,
audits and other structured assessments, covering both planned and unplanned aspects.
The Group maintains awareness of legal obligations through its ISO 14001:2015-aligned Identification and Evaluation of
Compliance Obligations Procedure. Climate change oversight is further strengthened by the Energy (Emissions) Management
System – Structure & Governance procedure. The HSEA team monitors compliance through professional updates, regulatory
engagement, training, and industry forums. Compliance requirements from policies, licences, permits and standards are
recorded and evaluated, with outcomes reported in monthly KPIs and routinely reviewed to address non-conformances and
new legal requirements.
(b) Describe the organisation’s processes for managing climate-related risks.
The Sustainability and Risk Committee also provides a forum for the Board to review selected individual risk areas in greater
depth. Climate-related risks and opportunities, and associated mitigation measures and action plans, are maintained in a
series of risk registers at Enterprise (Group), region, function and asset levels.
Climate change is categorised as a standalone risk area within the Group’s ‘Risk Library’, allowing the application of EnQuest’s
RMF to underpin its approach in this important area. For each risk area, the Sustainability and Risk Committee reviews ‘Risk
Bowties’ that identify risk causes and impacts and maps these to preventative and containment controls used to manage the
risks to acceptable levels. EnQuest’s Climate Change ‘Risk Bowtie’ covers both physical and transition risks in accordance with
the TCFD framework (as outlined in the Strategy section (a)). They are also considered within the context and review of several
other risk areas, such as oil price, (see the Strategy and Risk management sections for the Group’s assessment of financial
materiality and potential impact and likelihood with respect to PEAR, respectively).
The outcomes from the Group’s materiality assessment have been incorporated within the Climate Change ‘Risk Bowtie’,
identifying and mapping risk causes and impacts against preventative and containment controls used to manage the risks to
an acceptable level.
A Continuous Improvement Plan (‘CIP’) describes EnQuest’s improvement initiatives, what the Company will do to achieve them
and how it will measure success. Specific objectives, targets and actions are developed and cascaded to all levels within the
organisation, including a number related to the management of climate-related risks. In addition to the CIP, EnQuest has defined
Key Performance Indicators (‘KPIs’), which are used to monitor performance. They consider the significant environmental aspects
and the Company’s compliance obligations.
(c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the
organisation’s overall risk management.
See the Risk management disclosure (a) for a description of how climate-related risks are integrated into EnQuest’s overall RMF.
Risks are uploaded to the Group’s risk software tools which assign ownership for the risks with associated systemised monitoring
of mitigations being closed out. These systems require the risk owner to assess the materiality of each given risk before and
after mitigations in accordance with the Group’s materiality thresholds (outlined in the metrics and targets section below).
EnQuest disclosure
Additional/related
information
Metrics and targets
Disclose the metrics
and targets used to
assess and manage
relevant climate‑
related risks
and opportunities
where such
information
is material
Absolute emissions and their reduction are a key area of focus for EnQuest given
the Group’s net zero commitment in respect of Scope 1 and Scope 2 emissions by
2040 and its desire to play its part in the UK’s drive towards net zero by 2050 (2045
in Scotland).
EnQuest currently operates offshore in the UK, Malaysia and Vietnam , which are
highly regulated mature hydrocarbon provinces. The Group has a well-
established HSEA Policy outlining its commitment to integrating environmental
management into its operations, with its Environmental Management System
ensuring the Group manages and mitigates its impact on the environment and
complies with the regulatory requirements in the areas in which it operates.
Through this process, the Group has not identified any financially material risks
associated with water, energy, land use, or waste management, while operational
risks continue to be managed under the EMS.
EnQuest has considered the climate-related metric categories in Table A2.1 within
the TCFD implementation guidance but has not set any other metrics or targets
beyond those listed below.
See pages 5 (KPIs),
30 to 33
(Midstream and
Veri Energy review),
48 (Environmental),
86 (s172), 114 and
115 (CPC and PSP
disclosures within
the Directors’
Remuneration
Report) and 124
(GHG emissions
disclosures in the
Directors’ report)
EnQuest disclosures
(a) Disclose the
metrics used by the
organisation to
assess climate‑
related risks and
opportunities in line
with its strategy and
risk management
process.
Absolute emissions reduction remains central to EnQuest’s strategy, underpinning its commitment to
achieve net-zero Scope 1 and 2 emissions by 2040 and supporting UK and Scottish net-zero targets for
2050 and 2045 respectively. Operating offshore in the UK and South East Asia, both mature and highly
regulated basins, the Group applies a robust HSEA Policy and Environmental Management System to
manage environmental impacts and ensure regulatory compliance. Through these processes,
EnQuest has not identified any financially material risks related to water, energy, land use or waste. The
Group has reviewed the climate-related metric categories in Table A2.1 of the TCFD guidance and has
not adopted additional metrics beyond those disclosed, but will comply with emerging requirements
as they apply, including the World Bank’s Net Zero Routine Flaring initiative, UK North Sea
carbon-intensity expectations and OSPAR’s NEAS 2030.
EnQuest disclosure
(b) Disclose Scope 1,
Scope 2, and, if
appropriate, Scope 3
greenhouse gas
(‘GHG’) emissions,
and the related risks.
As outlined in the Directors’ report, EnQuest discloses Scope 1 and 2 emissions and associated intensity
outcomes on an operational control basis. The Group discloses Scope 3 emissions, with data reported
on Category 5 ‘waste generated in operations’, Category 6 ‘business travel’, Category 7 ‘employee
commuting’ and, most materially, Category 11 ‘use of sold product’.
• Scope 1 – 1,032,517 tCO
2
e
•
Scope 2 (location based) – 35,846 tCO
2
e
• Scope 3 – 5,831,999 tCO
2
e
The Group’s GHG emissions data disclosed in the Directors’ report and throughout the ARA is verified by
Lucideon. The Group is cognisant of the risks of access to capital and people, rising emission costs
and reputational and regulatory risks associated with failure to adhere to policies and guidelines or
missing targets.
EnQuest disclosure
(c) Describe the
targets used by the
organisation to
manage climate‑
related risks and
opportunities, and
performance against
targets.
The Board aims to adopt the most ambitious decarbonisation targets that are feasible within the
economic realities of operating a late-life asset portfolio. In 2021, the Board approved a rolling
three-year target to reduce absolute Scope 1 and Scope 2 emissions from the existing portfolio by 10%,
measured against a year-end 2020 baseline. As at 31 December 2025, Group emissions had decreased
by approximately 26% relative to the 2020 baseline, and by around 5% over the three-year period
beginning 1 January 2022. Additional three-year reduction targets are embedded within the Group’s
Performance Share Plan measures (see page 115 of the Directors’ Remuneration Report).
The Group also set discrete emissions reduction targets from a 2021 baseline focused on diesel
consumption and flaring. Performance against these operational targets was assessed as between
target and stretch, as reported in the Directors’ Remuneration Report within the 2022 Annual Report
and Accounts.
Progress has also been evaluated against the UK North Sea Transition Deal (‘NSTD’) decarbonisation
pathway. As at 31 December 2025, the Group had reduced UK Scope 1 and 2 emissions by
approximately 46% against the 2018 baseline, materially outperforming the NSTD’s interim requirement
of a 10% reduction by 2025 and approaching the 50% reduction target set for 2030.
In 2023, the Board further strengthened its climate ambition by committing to reach net zero Scope 1
and Scope 2 emissions by 2040.
During 2024, the Group continued to advance its renewable energy and decarbonisation opportunities.
In carbon capture and storage (‘CCS’), EnQuest completed technical and commercial assessments of
the four storage licences awarded by the NSTA in 2023. Two of these licences were relinquished in
early 2025, while the remaining licences at the Magnus and Thistle reservoirs are being progressed
with the intention of enabling up to 10 Mtpa of CO
2
storage for stranded emitters in depleted North
Sea reservoirs.
The Group is pursuing advantaged natural wind resources in Shetland, including e–fuel opportunities
for offshore assets. These initiatives have the potential to leverage renewable energy to support the
decarbonisation of offshore oil and gas operations and other industrial sectors. However, both
opportunities remain at formative stages and require further regulatory clarity and fiscal support
before specific financial, or emissions reduction targets can be established.
84–85
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Environmental, Social and Governance
Stakeholder engagement
Section 172
statement
Section 172 matters (a) – (c) are
covered in the accompanying
stakeholder engagement disclosures
on the following pages. The Board’s
consideration with respect to section
172 matter (d) can be found on pages
44 to 64, matter (e) on pages 42, 75, 96
to 97 and 112, and matter (f) within
the principal decisions outlined on
page 88.
The Board has acted in a way that it
considers to be most likely to promote
the success of the Company for the
benefit of its members as a whole and,
in so doing, has regard for the potential
impact of the Group’s activities on its
various stakeholders. In the majority of
cases, information and feedback are
provided throughout the year to the
Directors by the Group’s Executive
Directors, senior and functional
management and external advisers
through a variety of Board reports,
presentations and ad hoc
correspondence. These reports cover
the Group’s financial, operational and
environmental performance, while
EnQuest’s advisers provide the Board
with relevant insight from their
interactions with their respective
stakeholders.
When appropriate, the Directors seek
further understanding of the concerns
of relevant stakeholders, which could
include direct engagement by the
relevant Director and/or requesting
additional information to ensure they
have a full appreciation of a given
matter prior to making any decisions.
As such, the Directors are able to assess
the impact of business decisions on
stakeholders and fulfil their duty to
promote the long-term success of
the Group.
The Directors consider principal
decisions (outlined on page 88) on the
basis of materiality of the incremental
impact they are anticipated to have on
the Company’s stakeholders and/or the
Company itself. Throughout the year,
the Board and management team
considered various M&A opportunities.
For several of these, it was decided that
their pursuit would not be in the
interests of the Group’s stakeholders,
reflecting EnQuest’s in-depth review
processes (including those by the
Technical and Reserves Committee)
and focus on capital discipline.
Stakeholder groups
Direct Board-level engagement in 2025
Other engagement activities in 2025
A
People
Our employee and contractor workforce is critical
to the delivery of SAFE Results and EnQuest’s
success. As such, we are committed to ensuring
EnQuest remains a great place to work. We have a
strong set of Values that underpin our way of
working and provide a rewarding work
environment, with opportunities for growth and
learning while contributing to the delivery of
our strategy.
Three Global Employee Forum meetings per year with
designated Non-Executive Directors were organised; video
messages; subject matter expert virtual and physical
attendance at scheduled Board and Board Committee
meetings; physical and virtual safety leadership
engagement visits; and three interactive virtual Town
Hall Meetings.
See the accompanying principal decisions on page 88 and
pages 59 to 61 of the ESG section which detail the various
people-related initiatives implemented during the year,
including the employee surveys and those related to our
people’s safety and well-being.
B
Investors
Our investors support management in the
execution of EnQuest’s business strategy,
including the provision of capital for management
to develop the business in order to deliver returns
in a responsible manner.
Virtual and physical meetings (including the Annual General
Meeting, post-results roadshows and multiple investor
conferences and ad hoc meetings), calls and direct
correspondence with a wide range of equity and debt
investors in relation to the Group’s refinancing plans and
delivery against its strategic objectives.
See the accompanying principal decisions on page 88 and
the Strategic report on pages 02 to 88, which explains the
Group’s performance and investment decisions during
the year.
Page 97 of the Corporate governance statement outlines in
more detail how the Group engages with its investors. Access
to Capital and Liquidity is identified as one of the Group’s
Principal risks and uncertainties on page 71.
C
Partners
We collaborate with our existing joint venture
partners, securing their support to deliver our
asset plans. We value their contribution to
the effective operational and financial
management of our assets as we deliver on our
business strategy.
In pursuit of the Group’s new energy and
decarbonisation ambitions, we also engage with
potential strategic and financial partners.
Virtual and physical meetings and calls.
The Group has regular engagement with its joint venture
partners on day-to-day asset management and the
execution of the longer-term asset strategy. This occurs
through a combination of formal interactions, governed by
joint operating agreements, and via informal engagement.
See pages 22 to 33 of the Strategic report for further details
on operational and financial activities and decisions
undertaken across our assets.
D
Host governments
and regulators
We work closely with the host governments and
regulators in the jurisdictions in which we operate.
The Group complies with the necessary regulatory
requirements, including those related to
environmental matters such as reducing
emissions, to ensure it maintains a positive
reputation and licence to operate, enabling the
effective delivery of the Group’s strategy.
Virtual and physical meetings and calls with the North Sea
Transition Authority (‘NSTA’) in the UK, Malaysian Petroleum
Management (‘MPM’) in Malaysia and PetroVietnam in
Vietnam. A number of meetings have been held with the
Shetland Islands Council (‘SIC’) in relation to the Group’s
Infrastructure and New Energy business, while several
meetings and other correspondence have been undertaken
with UK Treasury officials on the UK’s Energy Profits Levy (‘EPL’).
See the Strategic report on pages 02 to 88 and the Group’s
Principal risks and uncertainties on pages 62 to 74, which
outline EnQuest’s strong relationships with governments and
regulators. Pages 48 to 55 of the ESG section and pages 122
to 126 of the Directors’ report outline further details on the
Group’s regulatory compliance activities.
E
Suppliers
EnQuest relies on its suppliers to provide specialist
equipment and services, including skilled
personnel, to assist in the delivery of SAFE Results.
None
The Group has continued its active and positive engagement
with its suppliers through various supplier forums,
performance reviews, ad hoc virtual meetings and industry
events. The Group continues to monitor and report its
supplier payment performance.
Please also see the Group’s Principal risks and uncertainties
on pages 62 to 74, a number of which are impacted by the
Group’s supplier relationships.
F
Communities
Making a positive contribution, and appropriately
managing our environmental impact in the
communities in which we live and work around the
world, remains a key part of our activities. Our
communities provide a potential source of
employees, contractors and support services,
and are important in supporting EnQuest’s
social licence to operate and maintaining a
positive reputation.
None
See pages 56 to 61 of the ESG section which outline the
Group’s community engagement activities and
environmental considerations.
G
Customers
Our customers help facilitate the provision of
hydrocarbon-related products to meet a variety of
consumer demands and, as such, require a reliable
supply of hydrocarbons to meet their needs.
We have also begun engaging with potential
customers in relation to our carbon capture and
storage and electrification opportunities as part of
our Infrastructure and New Energy business.
None
We have maintained strong relationships with existing
customers, including fuel oil blenders to whom the Group
supplies Kraken oil as an unrefined constituent of IMO 2020
compliant low-sulphur bunker fuel.
86–87
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Stakeholder groups
A
People
B
Investors
C
Partners
D
Host governments and regulators
E
Suppliers
F
Communities
G
Customers
Principal decision and
impacted stakeholders
Stakeholder considerations and impact on the
long-term sustainable success of the Company
Shareholder
distributions
Impacted stakeholders:
A
B
Following significant and disciplined deleveraging of the Group’s balance sheet over recent years,
EnQuest executed its maiden shareholder return in 2024 in the form of a share buy-back programme.
In all, c.56 million shares were purchased for a total consideration of c.£7 million (c.$9 million) in 2024.
To provide increased certainty on the quantum of the return, following the signing of the 2024
Financial Statements, the Board decided to propose the Group’s first dividend, in the form of a
$15 million final 2024 dividend.
Accordingly, the dividend was paid in June 2025, following shareholder approval at the Company’s
Annual General Meeting.
For further information, see pages 14 to 41 of this Strategic report and note 8 to the
financial statements.
Reserve Based
Lending refinancing
Impacted stakeholders:
A
B
C
D
The Group’s improved balance sheet, strong liquidity position and significantly advantaged UK tax
position mean EnQuest is well placed to pursue growth opportunities.
To maximise available financial capacity to pursue value-accretive growth, the Board considered
several options to enhance the Group’s liquidity position. This process centred on repaying and
refinancing the Group’s senior secured Reserve Based Lending (‘RBL’) facility.
During November 2025, the Board sanctioned a new six-year RBL totalling $800.0 million, comprising:
1. a $400.0 million secured revolving loan facility;
2. a $400.0 million secured revolving letter of credit (‘LoC’) facility; and
3. an accordion of up to $800.0 million, which provides the potential to extend the secured revolving
loan facility and the revolving letter of credit facility by up to $400.0 million each.
The new RBL was used to refinance the Group’s existing $500.0 million RBL facility, which included a
$75.0 million LoC sublimit, and was due to mature in April 2027.
The new loan facilities enhance EnQuest’s liquidity profile, and the expanded LoC tranche provides
committed long-term coverage for the Group’s decommissioning security obligations.
Accordingly, the Board concluded that this positioned the Group to be transaction-ready for
future opportunities.
For further information, see pages 4 to 41 of this Strategic report and note 17 to the
financial statements.
South East Asian
expansion
Impacted stakeholders:
A
B
C
D
E
F
G
Building on the Group’s strong and expanding operating footprint in Malaysia, as well as its recent
entry into Vietnam, the Board and Executive team have been clear that South East Asia is a region in
which EnQuest is targeting enhanced geographic and commodity diversification. The gas weighting
of these opportunities aligns with the Group’s strategic aim to reduce its overall carbon intensity.
Accordingly, the Board has made two significant decisions relating to South East Asian expansion
during 2025: the Gaea and Gaea II Production Sharing Contract (‘PSC’) awards in Indonesia, and the
Block C Production Sharing Agreement (‘PSA’) in Brunei.
In Brunei, EnQuest was awarded sole operatorship of the Block C PSA, ahead of forming a 50/50 joint
venture company with the Brunei Energy Exploration Sdn Bhd. Block C is located offshore Brunei
Darussalam and hosts the condensate-rich gas discovered fields of Merpati, Meragi and Juragan.
EnQuest intends to develop these fields in stages, beginning with Merpati Field. The produced gas
and liquids from the fields are targeted for use in the domestic market and the Brunei LNG plant,
which supplies the international LNG markets.
The Brunei development, when aggregated with the Group’s established South East Asia portfolio, is
an important component of EnQuest’s stated target to deliver 35,000 Boepd of net production in the
region by 2030.
Further to this, EnQuest has taken operatorship and a 40.0% equity share of the Gaea and Gaea II
exploration blocks, located in Papua Barat, Indonesia. The blocks present significant resource
potential for EnQuest and its joint venture partners, estimated to be in excess of 100 Tscf by the
Indonesian Ministry of Energy and Mineral Resources and are located in proximity to the bp-operated
Tangguh LNG facility.
These mid- and long-term development opportunities have the ability to benefit the Company, the
host countries and the communities in which we operate.
For more information on these transactions, please see pages 26 and 27.
The Strategic report was approved by the Board and signed on its behalf by the Company Secretary on 24 March 2026.
Kate Christ
Company Secretary
Environmental, Social and Governance
Stakeholder engagement
continued
88–89
Financial Statements
Corporate Governance
Strategic Report
EnQuest PLC Annual Report and Accounts 2025
Executive Committee
Executive
Committee
Radzif joined EnQuest at the early
stages of the Company’s entry
into Malaysia and has played a
key role in ten years of successful
operations.
Radzif started his career as a
marine civil engineer, working on
marine and shore protection.
He later worked for ExxonMobil
and Nippon Oil in various project
roles, before joining Bechtel to
work on the development of
petrochemical plants.
Radzif moved back to upstream
with Murphy Oil, working to bring
their first oilfield onstream in 2003,
and then in support of a new
billion-dollar gas development.
Radzif has built extensive
experience in commercial and
business development, both in
Malaysia and across the South
East Asia region.
Radzif Ahmed
General Manager,
South East Asia
Key strengths and experience
• Over 30 years of experience in
the oil and gas industry, having
had organisational lead roles,
overseeing projects, field
development, commercial and
business development
• Degree in Civil Engineering
from Liverpool University and a
Post-graduate Diploma in
Business Administration from
Strathclyde Business School
Kate joined EnQuest PLC in 2016
and became Company Secretary
in 2024.
She is a Fellow of the Chartered
Governance Institute and over the
past 17 years has worked in
governance roles in a variety
of industries.
She started her career in the
charitable sector, has worked
within government departments
and, prior to joining EnQuest,
worked for FTSE 100 and FTSE 250
financial service companies.
Kate Christ
Company Secretary
Key strengths and experience
• MSc in Corporate
Governance
• Chartered Secretary
Paul joined EnQuest in 2011 from
law firm Dundas & Wilson, where
he worked in the energy and
infrastructure team, advising a
variety of public and private
sector clients, utilities and lenders
on complex major commercial
projects. In his time at EnQuest,
Paul has undertaken several key
roles, including North Sea Legal
Manager, Director of Corporate
Development and New Energy
and, most recently, playing an
integral role in establishing the
Group’s new energy subsidiary,
Veri Energy. Paul has played a key
role in a number of EnQuest’s
business development projects
and was instrumental in
structuring the Group’s
acquisition of the Magnus asset
from bp. Paul has overall
responsibility for the commercial
and legal affairs of the Company.
Paul is a member of the law
society of Scotland and has an
LLB (First Class) in Law (with
options in accountancy) degree
from the University of Aberdeen.
Paul Massie
Legal and Commercial
Director
Key strengths and experience
• Extensive legal and
commercial expertise
• Wealth of experience in
structuring and delivering
business development
projects and acquisitions
• Joint venture management
Claire began her career in the
retail industry and, after
progressing through various
managerial positions, she joined
Michael Page Recruitment in 2008
as a Managing Consultant,
supporting the set-up of a newly
created Aberdeen office focusing
on oil and gas recruitment. Claire
joined EnQuest as a Senior
Recruitment Advisor in 2012
before becoming HR Business
Partner in 2013. She has a track
record of consistent performance,
delivering results and effective
leadership for the company.
Claire took on the role of Human
Resources Director for North Sea
in June 2024.
Claire Scrimgeour
Human Resources Director
Key strengths and experience
• MA in International Business
and Languages
• Member of the Chartered
Institute of Personnel
Development
Ian joined EnQuest in 2012 as a
Senior Completion Engineer,
bringing technical expertise and a
commitment to safe, efficient well
delivery. Ian progressed through
senior operational roles,
culminating in his appointment as
Well Delivery Manager in 2018.
In 2023, Ian was appointed
Corporate Head of Health, Safety
and Environment (‘HSE’), where he
led the development and
implementation of Group-wide
HSE strategy and performance
improvement initiatives. Building
on this success, he assumed the
role of Director of HSE and Wells in
2024, overseeing critical risk
management, operational
integrity, and well activity across
the portfolio.
Ian now serves as Interim General
Manager for EnQuest’s North Sea
Business, where he is responsible
for asset performance,
operational delivery, and
organisational leadership.
He holds a First-Class Honours
degree in Mechanical Engineering
and is a Chartered Member of the
Institution of Mechanical
Engineers.
Ian McKimmie
Interim General Manager,
North Sea
Key strengths and experience
• Extensive leadership
experience across multiple
disciplines
• Commitment to SAFE Results
across all North Sea
operations
• Track record of top quartile
drilling performance delivery
90–91
Financial Statements
Corporate Governance
Strategic Report
EnQuest PLC Annual Report and Accounts 2025
G
G
R
R
A
R
S
G
A
S
A
S
G
Gareth, having chaired a number
of public and private boards,
joined EnQuest in December
2022. He is currently the
chairman of Ninety One Plc and
Ltd and was previously chairman
of Norilsk Nickel, Russia’s largest
diversified mining and metals
company. Gareth also served on
the board of Julius Baer Group for
12 years. He has extensive
experience in extractive
industries, having spent 22 years
with De Beers and Anglo
American, the last five of which
he was group chief executive
officer of De Beers.
Principal external
appointments
Chairman of Ninety-One Plc
and Ltd.
Gareth
Penny
Independent
Non-Executive Chairman
Appointed 6 December 2022
Key strengths and experience
A wealth of board-level and
extractive industry experience
Amjad worked for the Atlantic
Richfield Company (‘ARCO’) from
1984 to 1998, eventually
becoming president of ARCO
Petroleum Ventures. In 1998, he
founded and was the chief
executive of Petrofac Resources
International Limited which
merged into Petrofac PLC in 2003.
In 2010, Amjad formed EnQuest
PLC, having previously been a
founding non-executive
chairman of Serica Energy PLC
and a founding partner of Stratic
Energy Corporation. Amjad was
chairman of Enviromena Power
Systems Ltd, the largest solar
power engineering company in
the MENA region, until its sale in
2017 and was British Business
Ambassador for Energy from 2013
to 2015. Chair of the independent
energy community for the
World Economic Forum from
2016 – 2025.
Principal external
appointments
Director and Trustee of The
Amjad and Suha Bseisu
Foundation since 2011.
Amjad
Bseisu
Chief Executive
Appointed 22 February 2010
Key strengths and experience
Extensive energy industry and
leadership experience
Jonathan joined EnQuest in
December 2023 as CFO
Designate, becoming EnQuest
CFO on 1 February 2024. Jonathan
has a strong technical
background in geology and
geoscience alongside ten years’
capital markets experience. In his
time in the City, Jonathan was
the number one ranked energy
analyst and co-authored a
well-respected industry
handbook, ‘Oil and Gas for
Beginners’. Jonathan spent four
years as CFO of Salamander
Energy PLC, a production and
development business focused
in South East Asia. While there,
Jonathan more than doubled the
post-tax margin against a flat oil
price. For the last seven years,
Jonathan was CEO of Getech
Group PLC, where he repositioned
and recapitalised the business
as a data and analytics
specialist, while also
decarbonising more than
one-third of revenues.
Principal external
appointments
None.
Jonathan
Copus
Chief Financial Officer
Appointed 30 May 2024
Key strengths and experience
Extensive energy, natural
resource and capital
market experience
Board of Directors
Board of Directors
Committees key
Audit
Governance and Nomination
Remuneration and Social Responsibility
Sustainability and Risk
Denotes Committee Chair
A
G
R
S
Michael is an experienced
operator of large-scale
exploration and production
assets, having worked for over
35 years with TotalEnergies,
including managing the
integration of the Maersk
Oil business.
His international career with
TotalEnergies has spanned
Europe, Asia, North and South
America, culminating in his
appointment as senior vice
president North Sea and Russia,
and as Denmark country chair in
2018. Michael was a non-
executive director of Novatek
OAO, which was listed on the
London Stock Exchange and
Moscow Stock Exchange,
between 2015 and 2021.
Principal external
appointments
None.
Michael
Borrell
Independent
Non-Executive Director
Appointed 5 September 2023
Key strengths and experience
Significant global exploration
and production experience
Marianne is a seasoned capital
markets adviser with a focus on
oil and gas, first at Total, then as
Head of Natural Resources at BNP
Paribas and as co-head of the
Energy and Natural Resources
M&A practice at Natixis. With a
strong experience in corporate
transactions, capital markets
and structured finance, Marianne
has advised multiple oil and gas
companies. She was appointed
CFO of Lithium de France in 2021.
She led the €44M Series B for the
company, then the listing of
Arverne Group on Euronext
through its merger with
Transition SPAC.
Principal external
appointments
Head of Financing, Capital
Markets and M&A of the Arverne
Group and is a non-executive
director of Gulf Keystone
Petroleum Limited.
Marianne
Daryabegui
Independent
Non-Executive Director
Appointed 30 May 2024
Key strengths and experience
Significant capital markets and
mergers and acquisitions
experience
Rosalind has over 30 years of
international, legal, operational,
executive and board experience
in a variety of sectors, including
energy, oil and gas, mining,
infrastructure, private equity,
financial services and
manufacturing. She has worked
across Africa, Europe, the
Americas, Asia and the South
Pacific for companies and
organisations, including
Linklaters, Anglo American, De
Beers, Tullow Oil plc, the United
Nations Environment Programme,
University of Oxford’s
Environmental Change Unit
and ERM.
Principal external
appointments
Founder and director of Kina
Advisory Limited, and also a
non-executive director of
discoverIE plc and Gem
Diamonds Limited. Director of
private companies – WE Soda
and Flamingo Group
International.
Rosalind
Kainyah
Independent
Non-Executive Director
Appointed 30 May 2024
Key strengths and experience
Substantial international,
multi-sector experience
Farina is a Fellow of the Institute
of Chartered Accountants
Australia and New Zealand with
over 30 years’ experience
primarily in the oil and gas sector.
She began her career with
Coopers & Lybrand, Australia,
before joining PETRONAS in
Malaysia, where she held senior
roles including as CFO of an
upstream subsidiary, PETRONAS
Carigali Sdn. Bhd, CFO at
PETRONAS Exploration and
Production and CFO of PETRONAS
Chemical Group Berhad. Since
2016, Farina has taken on NED
roles including as Chairman,
Ambank Islamic Bhd and
non-executive director of AMMB
Holdings Bhd.
Principal external
appointments
Member of the boards of the
following Malaysian listed
companies: PETRONAS Gas Bhd,
KLCC Property Holdings and
Lianson Fleet Group Bhd.
Farina
Khan
Senior Independent
Director
Appointed 1 November 2020
Key strengths and experience
Strong energy industry and
financial experience, as well as
deep insights into Malaysia
92–93
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Chairman’s letter
Strong corporate
governance forms
a vital part of our
overall structure,
underpinning
effective risk
management and
reflecting the
Group’s key Values.
Chairman
Gareth Penny
Dear shareholder,
On behalf of the Board of Directors (the ‘Board’) I am pleased
to introduce EnQuest’s Corporate Governance Report for 2025.
Throughout the year the Board has played its part in setting
the purpose, tone and culture of the organisation and has
remained focused on operational integrity, safety
performance, and capital discipline.
As announced in my Chairman’s letter last year, 2025 saw the
Company’s entry into Vietnam. In July 2025, the Company
completed the transaction, confirming EnQuest as operator
and representing a key step in delivering the Group’s
diversified growth across South East Asia. Continuing the
Group’s development and expansion in South East Asia,
EnQuest was awarded a Production Sharing Agreement for
Block C in Brunei by the Petroleum Authority of Brunei
Darussalam and also together with its joint venture partners
and the Government of Indonesia, signed Production Sharing
Contracts (‘PSCs’) for the Gaea and Gaea II exploration blocks,
located in Papua Barat, Indonesia. The Board has been
extremely impressed by the efforts taken in securing such
opportunities and has engaged closely with our Malaysia
team and members of the wider organisation, via Board
presentations and deep dives. Details on the new country
entries can be found on pages 26 and 27.
In November the Group announced it had secured new
six-year, senior secured Reserve Based Lending facilities (the
‘New RBL’) totalling $800.0 million. The New RBL will be used to
refinance the Group’s existing $500.0 million facility, which
includes a $75.0 million Letter of Credit sublimit, that was due
to mature in April 2027. For more detail see page 37 of the
financial review.
During the year, the Board approved the Company’s
inaugural dividend, reflecting the progress made in
strengthening the financial position and the Board’s
confidence in the Group’s long-term outlook. In reaching this
decision, the Board considered capital allocation priorities,
financial resilience and the sustainability of future
distributions, ensuring that the initiation of a dividend aligns
with the Company’s strategic objectives and commitment to
disciplined governance.
The Board continues to review and enhance its governance
framework to ensure it remains fit for purpose in a changing
energy landscape. This includes ongoing assessment of
Board composition, succession planning, and engagement
with shareholders and other stakeholders. Having undertaken
an internal Board evaluation for 2025, it was concluded that
the Board’s composition, processes and dynamics remain
robust and support the long-term success of the Company.
Further information relating to the evaluation and operation
of the Board and its Committees can be found in the following
governance pages of this Annual Report and Accounts.
The Board would like to acknowledge the dedication and
professionalism of all our employees and contractors, who
continue to perform in challenging operating environments.
Their expertise, commitment to safety, and focus on
operational discipline are critical to the Company’s success.
I would also like to thank my fellow Board members for their
diligence, independence, and depth of experience, as well as
the management team for their leadership and execution.
While uncertainty remains a defining feature of the external
environment, the Board is confident that the Company is well
positioned to navigate the challenges ahead.
Gareth Penny
Chairman
24 March 2026
Key corporate governance activities during the year
Activity
Purpose
Result
Succession
planning and
Board
composition
Creating a balanced
Board, continuous
refreshing of talent,
and development of
internal talent
•
Farina Khan appointed as an additional member of the Governance and
Nomination Committee
Company
distribution
Shareholder returns
• Inaugural dividend of $15.3 million
Refinancing
Strengthening the
balance sheet
•
New $800.0 million senior secured Reserve Based Lending facilities
Business
development
Ensure funding of
opportunities to support
the strategy
• Acquisition of Vietnam assets
•
Production Sharing Agreement for Block C in Brunei Darussalam
•
Product Sharing Contracts for Gaea and Gaea II exploration blocks, located
in Indonesia
•
Magnus contingent consideration settlement agreement, 2026 execution
Governance
To align the culture with
strategy and enable
effective delivery
•
Code of Conduct and associated policies refresh
• Annual compliance training
Further details of the Board’s activities and how they support compliance with the Corporate Governance Code are
shown in the table on page 96.
1
Committee Chair
EnQuest Structure
EnQuest PLC
Board of Directors
Chief Executive
Remuneration
and Social
Responsibility
Committee
Sustainability
and Risk
Committee
Audit
Committee
Governance and
Nomination
Committee
Country Leadership
Teams
Executive
Committee
Investment
Committee
HSEA
Directorate
Michael Borrell
1
Marianne Daryabegui
Rosalind Kainyah
Farina Khan
1
Michael Borrell
Marianne Daryabegui
Rosalind Kainyah
1
Farina Khan
Gareth Penny
Gareth Penny
1
Amjad Bseisu
Farina Khan
Michael Borrell
94–95
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Corporate governance statement
Statement of compliance
The Board believes that the manner in which it conducts its business is important and it is committed to delivering the highest
standards of corporate governance for the benefit of all of its stakeholders. The Directors understand and respect their duties to
stakeholders under Section 172 of the Companies Act 2006 and considerations related to stakeholders are reflected throughout
this Annual Report and Accounts (‘2025 ARA’). The Section 172 Statement can be found on page 86. The Company applies the
principles and complies with the provisions of the Financial Reporting Council‘s UK Corporate Governance Code 2024 (the
‘Code’) which was effective for accounting periods beginning on or after 1 January 2025 except in respect of Provision 41, as
explained on page 99. EnQuest further notes that Provision 29 of the 2024 Code applies to financial years beginning on or after
1 January 2026 and intends to report on it in the 2026 Annual Report. Activities undertaken so far in preparation for Provision 29
can be found on page 106 and 119. The Code can be found on the Financial Reporting Council’s website at www.frc.org.uk.
Detailed below is EnQuest’s application of, and compliance with, the Code. To avoid duplication, cross-references to appropriate
sections within the 2025 ARA are provided.
The manner in which the Company has applied the principles of the Code can be found in the following sections:
Board leadership and Company purpose
• Corporate governance statement (page 96)
• Strategic report (page 02)
• Stakeholder Engagement (page 86)
•
Purpose, Values and Culture (pages 02, 88)
• Workforce policies and practices (page 59)
•
Key activities of the Board in 2025 (page 99)
Division of responsibilities
•
Board biographies incl. external appointments (page 92)
• Corporate governance statement (page 96)
Composition, succession and evaluation
•
Governance and Nomination Committee report (page 100)
• Board and committee composition (page 95)
• Succession planning (page 101)
• Board diversity (page 101)
• Board training and evaluation (page 101)
Audit, risk and internal control
• Strategic report (page 02)
• Audit Committee report (page 103)
•
Sustainability and Risk Committee report (page 120)
• Financial Reporting (page 140)
•
Internal financial controls (page 108)
• Internal and external audit (page 108)
• Risk management (page 120)
Remuneration
• Directors’ Remuneration Report (page 110)
•
Alignment with strategy and performance (page 110)
• Shareholder engagement (n/a for 2025)
• Executive Directors’ policy (page 112)
Board leadership and Company purpose
The Board takes seriously its roles in promoting the long-term
success of the Company, generating value for shareholders,
having regard to the interests of other stakeholders and
contributing to wider society. How the Company manages
these areas can be found in the Strategic report, in particular
within the ‘Who we are and what we do’ section on and
page 02.
The Board is responsible for:
•
the Group’s overall purpose and strategy;
•
health, safety and environmental performance;
•
review of business plans and trading performance;
•
approval of major capital investment projects;
•
acquisition and divestment opportunities;
•
review of significant financial and operational issues;
•
review and approval of the Group’s financial statements;
•
oversight and review of control and risk management
systems;
•
succession planning and appointments; and
•
oversight of employee culture.
Culture
The Board ensures that the culture of the Group is aligned
with its purpose, Values and strategy. EnQuest’s Values (which
are detailed at www.enquest.com/about-us/our-values)
embody the ethos of the Group, and the Board carefully
monitors and promotes a positive, inclusive and SAFE culture.
The Board believes that engaged and committed employees
are integral to the delivery of the Group’s business strategy.
Rosalind Kainyah has been the Company’s designated
Director for Employee Engagement since October 2024 and
meets with the Forum on a regular basis. These meetings are
reported to the Board to ensure that they are aware of
employee concerns and that the Group continues to foster an
inclusive and supportive culture aligned with its Values and
ESG priorities. More detail on the activities on the Forum can
be found on page 60.
EnQuest’s Code of Conduct underpins the governance and
culture of the Group. All personnel are required to be familiar
with the Code of Conduct, which sets out the behaviours that
the organisation expects of those who work at and with the
Group. The Code of Conduct is regularly reviewed and
updated to ensure it supports ethics and compliance best
practice. The Group’s Values complement the behaviours
contained within the Code of Conduct and are a key part of
the Group’s identity. They guide the workforce as they pursue
EnQuest’s strategy and delivery of SAFE Results. The Group
also has a ‘Handrails’ website, which is a standalone site
containing all internal policies and external training
programmes. All staff are required to enrol onto the course
programme on the website with courses such as anti-bribery
and corruption training and data protection training being
mandatory for all staff.
Workforce concerns
Through the Forum, regular briefings that allow for the
workforce to engage directly with management, the
promotion of its Code of Conduct and Values, and various
communication media, the Group seeks to set positive,
appropriate standards of conduct for its people within an
open, dynamic and inclusive culture. As part of the Group’s
whistleblowing procedures, the workforce is encouraged to
escalate any concerns anonymously to an external,
independent ‘Speak Up’ reporting line. Where concerns are
raised, they are reported to the Legal and Commercial
Director and Chair of the Audit Committee and investigated,
with follow-up action taken, as soon as practicable.
Stakeholder engagement
EnQuest continued to have an active and constructive
dialogue with its shareholders throughout the year to
understand their views on governance and performance
against strategy.
The Company’s engagement activities were conducted
through a planned programme of investor relations activities,
including meetings with:
•
credit and equity investors and research analysts with
regard to the Group’s performance against guidance
strategic aims and overall debt management strategy;
•
a selection of the Group’s larger shareholders directly with
Board Chairman, Gareth Penny, to discuss Group strategy
and governance; and
•
retail investors at the Company’s AGM.
The Group also delivered presentations alongside its half-
year and full-year results, including separate sessions
designed to give retail investors an opportunity to engage on
the Group’s results, copies of which are available on the
Group’s website, under ‘Investors’ at www.enquest.com, as
well as ad hoc presentations at investor conferences. The
Group’s results meetings are followed by investor roadshows
with existing and potential new investors. These meetings,
which take place throughout the year, other than during
closed periods, are organised directly by the Company, via
brokers and in response to direct investor requests.
EnQuest’s Investor Relations team and Company Secretarial
department respond to queries from shareholders, debt
holders, analysts and other stakeholders, all of whom can
register on the website to receive email alerts of relevant
Group news. EnQuest’s registrars, MUFG Corporate Markets
also has a team available to answer shareholder queries in
relation to technical and administrative aspects of their
holdings. The Board is routinely kept informed of investor
feedback, broker and analyst views and industry news in a
paper submitted at each Board meeting by the Group’s Head
of Investor Relations and Corporate Affairs and as required on
an ad hoc basis.
The Board is also kept informed of relevant developments
relating to other stakeholder groups such as suppliers,
regulators, partners and governments, as required by the
Executive Directors and/or the appropriate functional
management and considers potential impacts on these
groups of principal decisions made during the course of the
year (see page 86 for more details).
Board agenda and key activities throughout 2025
During 2025, Board meetings have been held both virtually
and in person, taking advantage of technology to ensure that
decision making can be carried out efficiently and in a
cost-effective manner. However, being cognisant of the
importance of personal connections and the need to build
relationships, three face-to-face meetings were held during
the year. These meetings were aligned with Committee
meetings to maximise the benefit of travel. Along with the
Board meetings, three Board dinners took place, where
Directors were able to explore issues and exchange ideas
informally. The Executive Committee attended one of the
dinners, along with other selected senior members of staff.
Directors’ attendance at Board meetings in 2025
Meetings
attended
Scheduled meetings 2025
Executive Directors
Amjad Bseisu
Jonathan Copus
6/6
6/6
Non‑Executive Directors
Gareth Penny
Michael Borrell
Marianne Daryabegui
Rosalind Kainyah
Farina Khan
6/6
6/6
6/6
6/6
6/6
The table below sets out matters that the Board discuss at each meeting and the key activities that have taken place
throughout this period.
Key activities for the Board throughout 2025
Strategy
Operation
Governance
Stakeholders
• Key projects, their status and
progress made
• Strategy update
• Key transactions
• Financial reports and
statements
•
Liquidity and financing
• HSEA
• Production
• Operational issues and
highlights
• HR matters
• Key legal updates
• Emission reductions
• Succession planning
• Assurance and risk
management
• Key governance
developments
• Investor relations and
capital market updates
• Employee engagement
• Government and regulator
engagement
96–97
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Corporate governance statement
continued
Conflicts of interest and compliance
The Group has procedures in place which identify and, where
appropriate, manage conflicts or potential conflicts of interest
with the Group’s interests. In accordance with the provisions
relating to Directors’ interests in the Companies Act 2006, all
Directors are required to submit details to the Company
Secretary of any situations which may give rise to a conflict or
potential conflict. The Board is satisfied that formal
procedures are in place to ensure that authorisation for
potential and actual conflicts of interest are dealt with
efficiently. Directors are required to obtain Board approval
before accepting any further external appointments.
The Group is committed to behaving fairly and ethically in all
of its endeavours and has policies which cover anti-bribery,
anti-corruption, data protection and anti-facilitation of tax
evasion. The anti-bribery and corruption programme is
reviewed annually by the Board and a compulsory online
anti-corruption training course, alongside data protection
training, is required to be completed by all staff. Additional
information can be found on page 43 and in the Code of
Conduct, which is available on the Group’s website.
Board education
All Directors receive an induction pack and meet with
management on joining the Company. They are also offered
Director training and memberships of organisations which
deliver knowledge and training to Non-Executive Directors.
Education is provided from time to time by the Company
Secretary or external advisers. For example, a training session
was held in August 2025 with external counsel to discuss
governance updates which included an overview of the
Economic Crime and Corporate Transparency Act and
other trends in audit, corporate governance and
sustainability reporting.
2025 Annual Report and Accounts (‘ARA’)
The Directors are responsible for preparing the 2025 ARA and
consider that, taken as a whole, the 2025 ARA is fair, balanced
and understandable, and provides the necessary information
for shareholders to assess the Company and Group’s position
and performance, business model and strategy.
Annual General Meeting (‘AGM’)
The Company’s AGM is ordinarily attended by the Directors
and executive and senior management and is open to all
EnQuest shareholders to attend. The 2026 AGM will be held
on 22 May 2026 at Ashurst LLP, London Fruit & Wool Exchange, 1
Duval Square, London, E1 6PW, United Kingdom.
Division of responsibilities
There is a clear division of responsibilities between the Board
and the executive leadership of EnQuest. The roles of the
Chairman and Chief Executive are not exercised by the
same individual.
Chairman
The Chairman is responsible for the leadership of the Board,
setting the Board agenda and ensuring the overall effective
working of the Board. The Chairman holds regular one-to-one
and group meetings with the Non-Executive Directors without
the Executive Directors present.
Chief Executive
The Chief Executive is accountable and reports to the Board.
His role is to develop strategy in consultation with the Board,
to execute that strategy following presentation to, and
consideration and approval by, the Board and to oversee the
general and operational management of the business.
Senior Independent Director
The Senior Independent Director (‘SID’) is available to
shareholders if they have concerns where contact through
the normal channels of the Chairman or the Executive
Directors has failed to resolve an issue, or where such contact
is inappropriate. The SID acts as a sounding board for the
Chairman and also conducts the Chairman’s evaluation on
an annual basis. Farina Khan is currently the SID for EnQuest.
Non-Executive Directors
The Non-Executive Directors combine broad business and
commercial experience from oil and gas, finance and other
industry sectors. They bring independence, external skills and
objective judgement, and constructively challenge the
actions of executive and senior management. This is critical
for providing assurance that the Executive Directors are
exercising good judgement in delivery of strategy, risk
management and decision making. They receive a monthly
report on Group performance and updates on major projects,
irrespective of a meeting taking place, which allows them to
monitor performance regularly. In addition, they hold to
account the performance of management and individual
Directors against agreed objectives and assess and monitor
the culture of the Company. All Directors of EnQuest have
been determined to have sufficient time to meet their
responsibilities and this is monitored on a regular basis. At the
date of this report there are seven Directors, consisting of two
Executive Directors and five independent Non-Executive
Directors (including the Chairman).
Company Secretary
The Company Secretary is responsible for advising the Board,
through the Chairman, on all Board procedures and
governance matters. In addition, each Director has access to
the advice and services of the Company Secretary. The
Company Secretary assists with the ongoing training and
development of the Board and is instrumental in facilitating
the induction of new Directors. The appointment and removal
of the Company Secretary is a Board matter. The Company
Secretary supports the Chairman in the provision of accurate
and timely information. Board agendas are drawn up by the
Company Secretary in conjunction with the Chairman and
with agreement from the Chief Executive. All Board papers are
published via an online Board portal system which offers a
fast, secure and reliable method of distribution.
Independence
The Chairman was independent on appointment. The Board
considers that all the Non-Executive Directors continue to
remain independent and free from any relationship that
could affect, or appear to affect, their independent
judgement. Information on the skills and experience of the
Non-Executive Directors can be found in the Board
biographies on pages 92 and 93.
Committees
The Board has four Committees which meet on a regular
basis and report back to the Directors at each Board meeting.
This allows for the Board to be informed of important
Committee business and, if necessary, to discuss issues
should they need to be escalated to Board level. There are
formal terms of reference for each Committee which set out
the scope of authority of the Committee, satisfy the
requirements of the Code and are reviewed and approved on
an ongoing basis by the Board. Copies of the terms of
reference are available on the Group’s website,
www.enquest.com. Membership and attendance of each
Committee can be found on the dedicated Committee
pages, details of which are found below.
Audit Committee
The Audit Committee responsibilities include reviewing the
effectiveness of the Group’s internal controls and risk
management systems, including the adequacy of the
Company’s arrangements for whistleblowing and procedures
for detecting fraud. The Committee is also in charge of
approving statements to be included in the Annual Report
concerning risk management as well as monitoring and
reviewing the effectiveness of the Group’s internal audit
capability, and oversight of external auditors, in the context of
the Group’s overall risk management system. The work of the
Audit Committee is on pages 103 to 109.
Remuneration and Social Responsibility Committee
The Remuneration and Social Responsibility Committee is
responsible for assessing the Group’s performance and for
determining appropriate performance-related compensation
in alignment with the Group’s Remuneration Policy and the
Code. It reviews and takes note of institutional shareholder
guidelines. As noted on page 96, in relation to Provision 41,
there was no engagement with the workforce explaining how
executive remuneration aligns with the wider company pay
policy due to no changes being made to the Policy. In
addition to remuneration, the Committee also monitors the
social responsibility activities of the Company, see page 56.
The work of the Remuneration and Social Responsibility
Committee is set out on pages 110 to 119.
Sustainability and Risk Committee
The Sustainability and Risk continues to progress its
comprehensive Risk Management Framework and has
conducted a robust assessment of the principal risks facing
the Group, which are outlined on pages 64 to 73 of the
Strategic report. The work of the Committee, which includes
monitoring HSEA issues and oversight of decarbonisation
matters, is on pages 120 to 121. This Committee is responsible
for providing the Board with additional technical insight when
making Board decisions. The Committee also reviews
material controls and held joint discussions with the Audit
Committee in 2025 to review compliance with Provision 29 of
the Code. See pages 103 and 121 for more information.
Governance and Nomination Committee
The Governance and Nomination Committee leads the
process for appointments and regularly reviews the structure,
size and composition of the Board. It also considers
succession planning for the Executive Committee and has
expanded its remit to cover all aspects of the Code. The work
of the Governance and Nomination Committee, including
information regarding the Board’s diversity and the
Company’s associated policy, recruitment and the Board
annual evaluation process, is on pages 100 to 102.
Board discussions and outcomes
Code expectations
Key Board discussions
Outcome
• Ensuring an effective and
entrepreneurial Board to promote
long-term sustainable success
• Macroeconomic environment
• Growth opportunities
• Board evaluation results
• Training and knowledge refresh
• The Board discusses growth
opportunities at every Board meeting,
including at the opportunity costs of
pursuing ventures
• Training on corporate governance and
compliance; anti-corruption and bribery;
and on Directors’ responsibilities
• Board member engagement with the
Employee Forum, which drives staff
culture
• Establishing and aligning purpose,
Values and strategy with culture
•
Culture, Values and ESG are included in
Company Performance Indicators
• Regular in-depth reviews of risks and
their mitigants through its Committees
• Ensuring necessary resourcing is in
place and establishing a framework of
controls to enable risk to be assessed
• Rigorous assessment of the Group’s
liquidity requirements
• Reviewed principal risks and
uncertainties and emerging risks
• UK and South East Asia regulatory
environment
•
Refinancing the Group’s debt facilities
• Evolution of the Risk Management
Framework
• Discussion and alignment on
compliance with regulatory
requirements
• Effective engagement with shareholders
and stakeholders
• Updates provided at each Board
meeting
• Debt investor engagement
• Annual General Meeting
• Ensuring workforce policies and
practices are consistent with the
Company’s Values
• Ethics and compliance
• Company Code of Conduct and
associated policies updated
• Handrails website
98–99
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Governance and Nomination Committee report
The Board
recognises that
strong governance
is central to
accountability,
effective risk
management,
and the long-term
success of the
Group.
Chair of the Governance and
Nomination Committee
Gareth Penny
Dear shareholder,
In 2025 the Governance and Nomination Committee focused
on maintaining oversight of the Group’s governance
framework. The year was characterised by operational and
governance stability, with no significant issues or compliance
matters requiring Committee action. Following my
appointment to the Company in December 2022, I led a
refresh of the Board’s composition and, by 2025, EnQuest had
a full complement of Directors with the appropriate skills,
experience and capability to support the Company’s long-
term strategy. As a result, Committee activity during the year
was limited. However, the Committee did convene to agree
that Farina Khan, Senior Independent Director (‘SID’), should
be invited to join as a member, particularly considering her
experience in South East Asia and the Group’s expanding
operations in the region.
One matter that Farina Khan undertook on behalf of the
Committee was to confirm my reappointment as Chair of the
Company, subject to shareholder approval at the
forthcoming AGM. Having served as a Director for three years
and in accordance with the terms of my appointment I was
required to submit myself for reappointment. I therefore
recused myself from all discussions relating to the matter and
the Committee, under Farina’s leadership, met to consider the
proposal which was subsequently approved by the Board. I
was delighted to be reappointed and look forward to leading
the Group into the future.
At the end of 2025, the Board held an internal performance
evaluation. I am encouraged by the findings which concluded
that the Board operates effectively and that the skills and
experience of the members reflected the requirements of the
Company. More information on this can be found on the
following page.
Gareth Penny
Chair of the Governance and Nomination Committee
24 March 2026
Governance and Nomination Committee membership
The composition of the Governance and Nomination
Committee is set out below, along with attendance at the
scheduled meetings.
Appointment dates and attendance at the two scheduled
meetings are set out below:
Member attended
Date appointed as
Committee member
Meetings attended
Gareth Penny
Amjad Bseisu
Michael Borrell
Farina Khan
6 December 2022
22 February 2010
5 September 2023
21 May 2025
2/2
2/2
2/2
1/1
Main responsibilities
The core work of the Governance and Nomination Committee
is to ensure that the Board and its Committees support the
strategy of the Group. The Board currently comprises seven
members; five Non-Executive Directors and two Executive
Directors. The Board is characterised by a collaborative
approach which works to create strong leadership with
individual Directors who collectively bring a diverse mix of
talent and experience to the Company.
The main responsibilities of the Committee are to:
•
review the size, structure and composition (including the
skills, experience, independence, knowledge and diversity)
of the Board and its Committees;
•
ensure the orderly succession of Executive Directors,
Non-Executive Directors and executive and senior
management;
•
identify, evaluate and recommend candidates for
appointment or reappointment as Directors or Company
Secretary, having regard to all forms of diversity and
ensuring the appropriate balance of knowledge, skills and
experience required to serve on the Board;
•
review the outside directorships and commitments of
Non-Executive Directors; and
•
exercise oversight of the compliance of the Company with
the Corporate Governance Code (the ‘Code’) and ensure
the relevant practices are applied as and when the Code
is updated.
The Committee’s full terms of reference can be found on the
Group’s website, www.enquest.com, under Corporate
Governance.
Committee activities during the year
The Governance and Nomination Committee met two times
in 2025. Key activities included appointing Farina Khan as an
additional member and the reappointment of Gareth Penny
as Chair.
Committee appointments
In 2025, the Board appointed Farina Khan to the Governance
and Nomination Committee. Farina Khan’s proven ability to
provide independent, informed oversight was a key factor in
the appointment. The Board and the Committee is confident
that Farina will make a meaningful contribution to the
Committee’s mandate.
Structured Board succession planning
Succession planning is an important part of the Committee
and the Board’s deliberations and encompasses senior
management and the wider organisation, with a focus on
identifying and developing high potential individuals.
To ensure the Board remains adequately resourced, effective,
and aligned with the Company’s strategic priorities, the
Governance and Nomination Committee oversees a robust
succession planning process, spanning short-, medium-, and
long-term horizons. Emergency succession plans are also in
place. This process encompasses diversity, sector expertise,
and leadership capabilities. At the current time, the Board is
considered to be well positioned for the future.
In considering a Board composition which best serves the
strategy, Values and Company purpose into the future, the
Board has adopted diversity targets which align to the
expectations of Listing Rule 6.6.6 R(9). Its membership
represents a spread of backgrounds and experiences which
cover the oil and gas industry and other industries, including
those supporting the energy transition. See pages 92 to 93
for biographies.
Board performance review
Having carried out an external Board evaluation in 2024, by
CorpStat Governance Services, it was felt appropriate to
undertake an internal Board evaluation in 2025. This was
carried out with support from BoardClic, an online survey
platform which provides an online questionnaire, with
benchmarking against other companies. BoardClic has no
other connections with the Group or any individual Director.
The results from the review, which were discussed at the
February 2026 Board meeting, considered the Board to be
operating at a high level of effectiveness, with
well-functioning dynamics and capabilities that fully support
the Company’s long-term success. The review also confirmed
that each Director continues to make an effective and
valuable contribution, bringing the appropriate skills,
experience and level of constructive challenge required for
their role. The Board’s Committees were also reviewed and
were found to be well run and adhering to their Terms of
Reference. There were no major findings from the Board or
Committees’ review.
The Chairman’s review formed part of the evaluation, using
the results of the survey and led by the SID, and it was
concluded that he was highly rated by his fellow Directors
and led the Board well, encouraging debate and ensuring all
views are aired. It was added that both the Chairman and
CEO were respectful of Board opinions and complemented
each other’s skills.
The key areas from the 2024 review were monitored and
progressed during the year.
Re-election to the Board
Following a review of the effectiveness of the Board, the
Governance and Nomination Committee confirms that it is
satisfied with both the performance and the time
commitment of each Director throughout the year. The
Committee also remains confident that each of them is in a
position to discharge their duties to the Company in the
coming year and that together they continue to bring the
necessary skills required to the Board. Board approval is
required should a Director wish to accept a further external
role. Detailed biographies for each Director, including their
skills and external appointments, can be found on pages 92
to 93.
Priorities for the coming year
The main focus of the Committee in 2026 will be continued
oversight of Board and Committee composition.
Boardroom diversity
The Group’s Diversity, Equity and Inclusion Policy can be found
on the Group’s website at www.enquest.com. The Policy aligns
with the Company’s Values and fosters an open, safe and
inclusive culture. The Group is committed to maintaining an
effective and diverse Board recognising that diversity of skills,
experience, background and tenure supports strong
governance, sound decision making and long-term
sustainable success. The Group also seeks diversity in
its workforce, recognising that those from different
backgrounds, experience and abilities can bring fresh ideas,
perspectives and innovation to improve the business and
working practices.
The Board Diversity Policy, which applies equally to its
Committees, is aligned with the expectations of Listing Rule
6.6.6 R(9). As at 31 December 2025 (being the reference date
chosen for the purposes of the Listing Rule) at least 40% of the
individuals on the Board were women (42.86%); one of the
CEO, CFO, Chair or SID is a woman (the SID is Farina Khan); and
at least one individual is from a minority ethnic background
100–101
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Governance and Nomination Committee report
continued
Number of Board
members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
Number in
executive
management
Percentage of
executive
management
Men
4
57.14%
3
4
66.7%
Women
3
42.86%
1
2
33.3%
Not specified/prefer not to say
–
–
–
–
–
Number of Board
members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
Number in
executive
management
Percentage of
executive
management
White British or other White
(including minority-white groups)
4
57.14%
1
4
66.7%
Mixed/Multiple Ethnic Groups
–
–
–
–
–
Asian/Asian British
1
14.29%
1
2
33.3%
Black/African/Caribbean/Black
British
1
14.29%
–
–
–
Other ethnic group
1
14.29%
1
–
–
Not specified/prefer not to say
–
–
–
–
–
(three members). There have been no changes to the Board
since the reference date. All the Committees of the Board are
ethnically and gender diverse. The target for the Executive
Committee is for a 33% diverse membership. At the reference
date, excluding the CEO and CFO, it was 33.3% ethnically
diverse and 33.3% gender diverse. At the date of publication
of this report it is, excluding the CEO and CFO, 20% ethnically
diverse and 40% gender diverse.
Although not a FTSE 350, the Board and Committee is
cognisant of the FTSE Women Leaders Review target of 40%
female representation on the Board and leadership teams
and remains ahead of the Parker Review target with respect
to minority ethnic representation.
The tables below set out information, as required by Listing
Rule 6.6.6R(10), at 31 December 2025. Data was gathered by
asking each Director and member of the Executive
Committee to self-report via email their response to the
information required by the Listing Rule.
Information relating to the gender breakdown of EnQuest’s
Directors and workforce, as well as senior managers and their
direct reports, as at 31 December 2025 can be found in the
Strategic Report on page 61.
Dear fellow shareholder
I am pleased to present the Audit Committee report for the
year ended 31 December 2025, covering our activities over the
course of the year.
The Audit Committee oversees and monitors the Group’s
financial reporting (including reporting on the financial
aspects related to climate change), external and internal
audit and the effectiveness of the system of internal financial
and IT-related controls. The Committee also works closely
with the Sustainability and Risk Committee in matters of
mutual interest, including progress on reviewing and
amending, where necessary, the Company’s risk
management and internal control framework in line with the
requirements of the updates to Provision 29 of the UK
Corporate Governance Code (the ‘Code’) issued in January
2024 and any recommendations arising from internal audit
assurance in the matter of risk and risk management. The
Committee and management remain committed to
reviewing the Group’s existing risk management and control
environment and associated reporting to ensure it remains
robust and appropriate.
More information on the role and responsibilities of the
Committee and its terms of reference, which are reviewed
annually, can be found at www.enquest.com/investors/
corporate-governance.
In addition to the standing agenda items for the year, the
Committee also considered a variety of other focus areas
including: the accounting impacts from the Magnus
contingent consideration settlement agreement with bp; the
accounting and control impacts from the Company’s
acquisition of producing interests in Vietnam; the relocation
of the UK North Sea support service centre from Dubai to
Bahrain; the Group’s successful refinancing activity; EnQuest
PLC’s shareholder distribution capacity; ongoing
simplification of the Group’s legal entity structure; the Group’s
IT support model and its transition to being fully outsourced;
the evolving cyber security landscape and the Group’s
response; and investor and regulator focus areas. In March
2026, the Committee also reviewed and endorsed the Group’s
fraud prevention, detection and investigation policy for
Board approval.
It was pleasing to see that the significant progress against
the previous control and process improvements, including IT
controls, identified in conjunction with the Group’s external
auditor continued into and throughout 2025, with only limited
further improvements identified. Given the volatile global
environment, the Committee also continued to ensure that
key judgements and estimates made in the financial
statements, such as the recoverable value of the Group’s
assets, were carefully assessed.
As discussed within the Corporate governance statement, the
Committee is pleased to confirm that the actions of the
Committee were, and continue to be, in compliance with the
Code and that it is satisfied with the formal and transparent
policies and procedures in place.
Farina Khan
Chair of the Audit Committee
24 March 2026
Audit Committee report
Reviewing and
challenging the
Group’s financial
reporting and
system of internal
controls has
remained a key
focus for the
Committee.
Chair of the Audit Committee
Farina Khan
102–103
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
102–103
Committee composition
As required by the Code published in January 2024, the
Committee exclusively comprises Non-Executive Directors,
biographies of whom are set out on pages 92 and 93. The
Board is satisfied that the Chair of the Committee, Farina
Khan, previously Chief Financial officer at PETRONAS Chemical
Group Berhad, and a Fellow of the Institute of Chartered
Accountants in Australia and New Zealand, meets the
requirement for recent and relevant financial experience, with
the Committee as a whole meeting the requirement to have
competence relevant to the sector in which they operate
given Michael Borrell and Marianne Daryabegui’s respective
careers in the oil and gas sector.
Membership of the Committee, appointment dates and
attendance at the five meetings held during 2025 is provided
in the table below:
Member
Date appointed
Committee member
Attendance at
meetings during
the year
Farina Khan
Mike Borrell
Marianne Daryabegui
1 November 2020
6 December 2023
30 May 2024
5/5
5/5
5/5
Meetings are also normally attended by the Chief Executive
Officer, Chief Financial Officer, Company Secretary, the
external auditor, the internal auditor, key finance team
members and other senior business managers as required.
The Chairman of the Board also attends the meetings from
time to time. The Chair of the Committee regularly meets in
between Committee meetings with the external lead audit
partner and internal audit to discuss matters relevant to
the Company.
The Committee continues to monitor its own effectiveness
and that of the functions it supports on a regular basis. In
2025, this review of effectiveness was undertaken as part of a
wider externally facilitated Board effectiveness evaluation
assessment. Through this assessment and the review of the
terms of reference of the Committee, regular meetings with
the internal and external auditors and key management
personnel, the Committee has concluded that its core duties
in relation to financial reporting, internal controls,
whistleblowing and fraud, internal audit, external audit and
reporting responsibilities are being performed well.
Audit Committee meetings
There were five Committee meetings in 2025. A summary of the main items discussed in each meeting is set out in the
table below:
Measure
March 2025
May 2025
August
2025
September
2025
December
2025
Audit Committee self-evaluation assessment of its effectiveness
including review of actions identified in previous effectiveness review
√
Audit Committee terms of reference
√
√
Significant matters arising from completed internal audits
√
√
√
√
Internal audit and assurance plan for 2025 and 2026
√
√
√
Internal audit progress against 2025 plan, including findings since
last meeting
√
√
√
√
IIA Global Internal Audit Standards gap analysis
√
Independence and objectivity of internal audit, including the internal
audit charter
√
Joint venture audit plan for 2025, including summary findings since
last meeting
√
√
√
√
Cyber security update
√
√
√
√
IT Support model transition review
√
Capital structure and business development, including the RBL
refinancing and Magnus contingent consideration settlement
agreements
√
√
√
Annual external audit plan
√
External (Deloitte) audit fees subject to the audit plan
√
Policy for and level of non-audit service fees for Deloitte
√
√
√
√
Quality, independence and objectivity of Deloitte
√
√
√
√
Effectiveness of Deloitte as external auditors
√
Evaluate the viability assessment
√
Appropriateness of going concern assumption
√
√
Shareholder distributions
√
√
Corporate structure simplification
√
√
√
UK North Sea support services relocation
√
Review of half-year or full-year regulatory press release and
results statements
√
√
Briefings on regulatory developments including corporate
governance, FRC thematic and corporate reporting reviews and
climate-related matters
√
Key risks, judgements and uncertainties, including the consideration of
climate change, impacting the half-year or year-end financial
statements (reports from both management and external auditor)
√
√
√
Presentation on the reserves audit and evaluation of the Competent
Person’s independence and objectivity
√
Tax strategy, policy and compliance
√
Impact of UK Energy Profits levy and other tax topics
√
√
√
Management’s response to audit findings, recommendations
and control weaknesses, including potential improvements and
agreed actions
√
√
Review of process and controls relating to the development of the
Group’s internal control framework
√
√
√
√
IT controls progress against IT audit findings
√
√
√
√
Audit Committee report
continued
Fair, balanced and understandable
A key requirement of the Group’s Annual Report and Accounts
is for the report to be fair, balanced and understandable. In
addition, the Annual Report should contain sufficient
information to enable the position, performance, strategy and
business model of the Company to be clearly understood
and details of measurable key performance indicators and
explanations of how the Company has engaged with its
stakeholders (as set out in the Group’s Section 172 Statement
on page 86). The Committee and the Board are satisfied that
the Annual Report and Accounts meet these requirements,
with appropriate weight being given to both positive and
negative developments in the year.
With regard to these requirements, the Committee has
considered the robust process which operates when
compiling the Annual Report and Accounts, including:
•
clear guidance and instructions are provided to
all contributors;
•
revisions to regulatory requirements, including the Code,
are communicated and monitored;
•
a thorough process of review, evaluation and verification of
the content of the Annual Report and Accounts is
undertaken to ensure accuracy and consistency;
•
external advisers, including the external auditors, provide
advice to management and the Audit Committee on best
practice with regard to the creation of the Annual Report
and Accounts; and
•
a meeting of the Committee was held in March 2026 to
review and approve the draft 2025 Annual Report and
Accounts in advance of the final sign-off by the Board.
Financial reporting and significant financial statement
reporting issues
The primary role of the Committee in relation to financial
reporting is to assess, amongst other things:
•
the appropriateness of the accounting policies selected
and disclosures made, including whether they comply with
International Financial Reporting Standards; and
•
those judgements, estimates and key assumptions that
could have a significant impact on the Group’s financial
performance and position, or on the remuneration of
executive and senior management.
104–105
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
These items are considered by the Committee, together with reports from both management and its external auditor at each
relevant Committee meeting. The significant accounting and reporting areas considered, including those related to EnQuest’s
2025 Consolidated Financial Statements, are set out below:
Significant financial statement reporting issue
Consideration
Going concern and viability
The Group’s assessments of the going concern
assumption and viability are based on detailed cash flow,
covenant and the reserve based lending borrowing base
forecasts. These are, in turn, underpinned by forecasts and
assumptions in respect of:
•
production and costs for the next three years, based on
the Group’s approved 2026 business plan and forecasts;
and
•
the oil price assumption, based on a forward curve of
$70/bbl.
The Committee reviewed and considered the Directors’ half-year
and full-year statements with respect to the going concern basis
of accounting. The Board also regularly reviewed the liquidity
projections of the Group. The detailed going concern and longer-
term viability analysis, including sensitivity analysis and stress
testing, along with explanations and justifications for the key
assumptions made, were presented at the March 2026 meeting.
This analysis was considered and challenged by the Committee,
including, but not limited to, the appropriateness of the period
covered, planning scenarios (including production volume
expectations, capital projects, macroeconomic assumptions,
including those associated with oil prices and inflation), stress
tests and the achievability of any mitigations that may be required
in a downside case scenario to ensure that the Group would have
sufficient headroom to continue as a going concern. The
Committee supported the going concern basis of accounting. The
disclosures in the Annual Report concerning the viability
statement and going concern assumption (see pages 40 to 41)
were reviewed and approved at the March 2026 meeting for
recommendation to the Board.
Potential misstatement of oil and gas reserves
The Group has total proved and probable reserves as at
31 December 2025 of 162.5 MMboe. The estimation of these
reserves is essential to:
• the valuation of the Company;
•
the assessment of going concern and viability;
• impairment testing;
• decommissioning liability provisions; and
• the calculation of depreciation.
During the March 2026 meeting, management presented the
Group’s 2P reserves, together with the report from GaffneyCline
energy advisory, the Group’s reserves auditor (which are also
presented to the Group’s Sustainability and Risk Committee for
technical assessment).
The Committee considered the scope and adequacy of the
work performed by GaffneyCline energy advisory and their
independence and objectivity and concurred that the
estimation of reserves had been consistently applied to the
financial statements.
Impairment of tangible and intangible assets
The recoverability of asset carrying values is a significant
area of judgement. These impairment tests are
underpinned by assumptions regarding:
• 2P reserves;
•
oil price assumptions (based on an internal view of
future prices of $65.0/bbl (2026), $67.5/bbl (2027), $72.5/
bbl (2028) and $75.0/bbl real thereafter);
•
life of field production profiles and opex, capex and
abandonment expenditure; and
•
a post-tax market discount rate derived using the
weighted average cost of capital methodology.
For more details, see also note 2 critical accounting
judgements and key sources of estimation uncertainty:
recoverability of asset carrying values, and notes 9 and 11.
Impairment testing has been performed resulting in a
pre-tax non-cash impairment credit of $5.8 million.
At the March 2026 meeting, management presented the key
assumptions made in respect of impairment testing and the result
thereof to the Committee. The Committee considered and
challenged these assumptions, including the oil price and
discount rate used, and potential impacts of climate change and
energy transition, in line with the challenges performed as part of
the going concern and viability review. Sensitivity analysis and
disclosures estimating the effect of oil price reductions were
reviewed. Consideration was also given to Deloitte’s view of the
work performed by management.
Significant financial statement reporting issue
Consideration
Contingent consideration
Any contingent consideration included in the
consideration payable for a business combination or
asset acquisition is recorded at fair value at the date
of acquisition.
The Group calculates contingent consideration payable
in respect of its Magnus acquisition. See note 21 for
further details.
At the March 2026 meeting, the Committee considered the facts
and circumstances in management’s assessment that the
agreement to settle the Magnus contingent consideration for
$60.0 million in February 2026 was deemed to be a reasonable fair
value in line with IFRS 13 for recognition of the liability at 31
December 2025. The Committee noted that as substantially all the
terms of the transaction, and particularly the settlement value,
were agreed prior to 31 December 2025, management’s
assessment was appropriate. Consideration was also given to
Deloitte’s view of the work performed by management.
The Committee noted the remaining contingent consideration
liability relates to the Group’s decommissioning responsibilities for
Magnus, which were not altered by the aforementioned settlement
agreement. This is not considered a significant accounting area.
Regardless, it was noted the key underlying assumptions, other
than the discount rate which is specific to the liability, were
developed alongside the Group’s other decommissioning
provision estimates.
The Committee concluded that the judgements and estimates
made and the related liabilities recorded were appropriate.
Climate change in financial reporting
While the Group’s view of evolving climate risks continues
to develop, appropriate disclosure is an area of focus for
the Committee.
Climate change and the transition to a lower carbon
economy may have significant impacts on the currently
reported amounts of the Group’s assets and liabilities and
on similar assets and liabilities that may be recognised in
the future.
See note 2 Use of judgements, estimates and assumptions:
Climate change and energy transition.
The Committee considered financial statement disclosures,
including TCFD and CFD reporting, and how the Group’s climate
change scenarios are reflected in the Group’s key judgements and
estimates used in the preparation of the Group’s 2025 financial
statements. The Committee also reviewed the results of testing the
Group’s resilience under the International Energy Agency’s Stated
Policies Scenario and Net Zero Emissions by 2050 scenario.
The Committee, recognising the evolving nature of climate
change risks and responses, concluded that climate change has
been appropriately considered by management in key
judgements and estimates and concurred with the disclosures
proposed by management.
Appropriateness of the decommissioning provision
The Group’s decommissioning provision of $915.6 million at
31 December 2025 is based upon a discounted estimate of
the future costs and timing of decommissioning of the
Group’s oil and gas assets. Judgement exists in respect of
the estimation of the costs involved, the discount rate and
inflation rate assumed, and the timing of
decommissioning activities.
See note 2 Critical accounting judgements and key
sources of estimation uncertainty: Provisions.
The Committee reviewed the report by management summarising
the key inputs and their impact on the provision, noting the most
significant increases related to additional discounted
abandonment obligations in Vietnam of $89.1 million (which is
pre-funded and offset by the receivable balance recognised on
the Group’s balance sheet of $92.1 million (see notes 15 and 22))
following the acquisition in July and obligations arising from the
accelerated development of the Seligi Non-Associated Gas
project. The Committee and the Group’s external auditor focused
on cost assumptions, as well as, the inflation and discount rates
used, alongside sensitivity analysis and disclosure estimating the
effect of a change in discount rates given the uncertain
macroeconomic environment. Regard was also given to the
observations made by Deloitte as to the appropriateness of the
estimates made.
Taxation
At 31 December 2025, the Group carried deferred tax
balances comprising $271.4 million of tax assets (primarily
related to previous years’ tax losses) and $250.4 million of
tax liabilities (primarily related to deferred taxes
associated with the UK Energy Profits Levy).
The recoverability of the tax losses has been assessed by
reference to future profit estimates derived from the
Group’s impairment testing. Ring-fence corporation tax
losses totalling $1,851.3 million ($627.1 million tax-effected)
have been recognised.
Given the complexity of tax legislation, risk exists in respect
of some of the Group’s tax positions.
The Committee received a report from the Group’s Head of Tax,
outlining all uncertain tax positions, and discussed management’s
assumptions of future profit estimates and evaluated the amount
of deferred tax assets recognised. It was noted that the
assumptions are consistent with those used in the impairment
assessment (see above). The Committee also took into account
the views of Deloitte as to the adequacy of the Group’s
tax balances.
An evaluation of the transparency of the Group’s tax exposures
was undertaken, reviewing the adequacy and appropriateness of
tax disclosures, including those related to the EPL, presented by
management. Regard was also given to the observations made
by Deloitte as to the appropriateness of the disclosures made.
Audit Committee report
continued
106–107
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Risk management
The Code requires that the Board monitors the Company’s
risk management and, at least annually, carries out and
reports on the results of a review of their effectiveness. The
Board has oversight of risk management within EnQuest for
the Company’s emerging and principal risks. Pages 64 and
120 provide more detail on how the Board, and its
Sustainability and Risk Committee, have discharged its
responsibility in this regard.
Internal control
Responsibility in respect of financial internal control is
delegated by the Board to the Committee. The effectiveness
of the Group’s internal control framework is reviewed
continually throughout the year. Key features include:
•
clear delegations of authority to the Board and its
sub-Committees, and to each level of management;
•
setting of HSEA, operational and financial targets and
budgets which are subsequently monitored by
management and the Board;
•
a comprehensive risk management process with clear
definition of risk tolerance and appetite. This includes a
review by the Sustainability and Risk Committee of the
effectiveness of management controls and actions which
address and mitigate the most significant risks;
•
an annual risk-based internal audit programme developed
in conjunction with management. Findings are
communicated to the Audit Committee and follow-up
reviews are conducted where necessary;
•
regular reporting to the Audit Committee of managements
key financial controls self-assessment; and
•
further objective feedback provided by the external
auditors and other external specialists.
Obtaining assurance on the internal control environment
The Group’s system of internal control, which is embedded in
all key operations, provides reasonable rather than absolute
assurance that the Group’s business objectives will be
achieved within the risk tolerance levels defined by the Board.
Regular management reporting, which provides a balanced
assessment of key risks and controls, is an important
component of assurance. Throughout the year, members of
the Committee participated in several Joint Committee
meetings with members of the Sustainability and Risk
Committee and other members of the Board in reviewing
management’s progress in developing an assurance
framework that will appropriately underpin the expectations
associated with updates to Provision 29 of the UK Corporate
Governance Code (the ‘Code’) issued in January 2024, which
is effective from 1 January 2026. This workstream included
in-depth reviews of and revisions to the principal risks facing
the Company and assessments of key non-financial reporting
metrics published by the Group, alongside reviews of the
associated material controls. The Committee therefore
continues to support and monitor the development of an
assurance framework to focus attention on the level of
assurance relating to all material controls within the business.
Management has also continued its assessment of the
potential for fraud risk across the business, ensuring
mitigating controls are in place and operating as expected as
well as identifying and implementing specific actions to
ensure the Group maintains a strong control environment.
External audit
One of the Committee’s key responsibilities is to monitor the
performance, objectivity and independence of the external
auditor. Each year, the Committee ensures that the scope of
the auditor’s work is sufficient and that the auditor is
remunerated fairly.
The annual process for reviewing the performance of the
external audit process involves gathering input from key
members of the Group who are involved in the audit process
to obtain feedback on the quality, efficiency and effectiveness
of the audit. Additionally, Committee members take into
account their own view of the external auditor’s performance
and independence, including the level of professional
scepticism displayed, when determining whether or not to
recommend reappointment. The Committee also held private
meetings with the external auditor during the year.
The Committee considered the external audit plan, with the
significant audit risks addressed during the course of the 2025
audit were:
•
impairment of oil & gas assets and goodwill;
•
contingent consideration;
•
decommissioning provision;
•
revenue recognition in Vietnam;
•
deferred tax; and
•
management override of controls.
Deloitte regularly updated the Committee on the status of
their procedures during the year, including how they had
challenged the Group’s assumptions. The Committee and
Deloitte discussed how risks to audit quality were addressed,
key accounting and audit judgements, material
communications between Deloitte and management and
any issues arising from them.
Taking into account management’s review and its own
experiences with the external auditor, the Committee
concluded that the audit team was providing the required
quality in relation to the provision of audit services in its sixth
year as auditor, with the last audit tender conducted in 2020,
and has maintained its independence and objectivity. As
required under UK auditing standards, Deloitte confirmed
their independence to the Committee.
The Committee considers the reappointment of the external
auditor each year, including consideration of the advisability
and potential impact of conducting a tender process for the
appointment of a different independent public accounting
firm. The Committee is also responsible for making a
recommendation to the Board for it to put to the Company’s
shareholders for approval at the AGM, to appoint, reappoint or
remove the external auditor. At the AGM in May 2025, the
shareholders approved a resolution to reappoint Deloitte as
external auditor with the same resolution to be proposed for
the 2026 AGM. The Company has complied with the Code and
FRC Guidance in respect of audit tendering and rotation,
under which the Company will be required to tender for the
audit no later than the 2030 financial year. The Committee
regularly reviews auditor performance and may elect to carry
out the tender earlier than the 2030 financial year if
determined it would be in the interests of the Company’s
shareholders to do so.
Audit Committee report
continued
Use of external auditors for non-audit services
The Committee is responsible for EnQuest’s policy on non-
audit services and the approval of non-audit services. The
Committee and Board believe that the external auditor’s
independence and objectivity can potentially be affected by
the level of non-audit services to EnQuest. To ensure
objectivity and independence, and to reflect best practice in
this area, the Company’s policy on non-audit services clearly
outlines which services are permitted and those that are not
in line with the recommendations set out in the FRC’s
Corporate Governance Code Guidance (July 2024) and the
requirements of the FRC’s Revised Ethical Standard (2024).
As part of the Committee’s process in respect of the provision
of non-audit services, the external auditor provides the
Committee with information about its policies and processes
for maintaining independence and monitoring compliance
with current regulatory requirements.
The key features of the non-audit services policy, the full
version of which is available on the Group’s website
(www.enquest.com; under Corporate Governance within the
Investors section), are as follows:
•
a pre-defined list of prohibited services has been
established;
•
a schedule of services where the Group may engage the
external auditor has been established and agreed by
the Committee;
•
any non-audit project work which could impair the
objectivity or independence of the external auditor may not
be awarded to the external auditor; and
•
fees for permissible non-audit services provided by the
external auditor are to be capped at no more than 70% of
both the average Group audit fee and the UK audit fee for
the preceding three years.
The Committee continues to review non-audit services
and reviews the scope of work to ensure its close link to
audit services.
The Committee regularly reviews reports from management
on the audit and non-audit services reported in accordance
with the policy or for which specific prior approval from the
Committee is being sought.
The scope of the non-audit services contracted with the
external auditor in 2025 consisted mainly of the interim review
and the provision of customary comfort letters in respect
of the debt refinancing and other assurance services (see
note 4(f)).
The Committee received reports from internal audit at each
relevant scheduled Committee meeting in 2025 and meets
privately with the head internal auditor from time to time. In
order to ensure independence and objectivity, the primary
reporting line of all assurance providers, including the Group’s
internal audit function, is to the Chair of the Committee,
noting day-to-day administrative oversight of internal audit is
provided by the Chief Executive.
The purpose, scope and authority of internal audit are defined
within its charter, which is approved annually by the
Committee. The internal audit function maintains an internal
quality assurance and improvement programme covering all
aspects of internal audit’s activities and evaluates the
conformance of these activities against the Global Internal
Audit Standards issued by the Institute of Internal Auditors
(‘IIA’) (effective January 2025).
In respect of the work performed by internal audit, an internal
audit plan is approved by the Committee each year. When
setting the plan, recommendations from management and
internal audit are considered, and take into account the
particular risks impacting the Company, which are reviewed
by the Board and the Sustainability and Risk Committee.
During 2025, internal audit activities were undertaken for
various areas, including reviews of:
•
preparedness for the enactment of the “Failure to prevent
fraud” offence to ensure compliance with the requirements
of the UK Economic Crime and Corporate Transparency Act;
•
accounts payable controls, particularly those that mitigate
recent developments in fraud techniques; and
•
supplier Due Diligence and Performance Monitoring review.
Detailed results from internal audit were presented to
management and a summary of the findings was presented
to the Committee, together with copies of all internal audit
reports, noting no material control issues were identified.
Where potential control enhancements were identified as
being required, the Committee agreed appropriate actions
with management and assessed management’s response to
the findings. Throughout the year, the Committee is kept
apprised of management’s progress against the agreed
actions, with the majority of actions closed in accordance
with the agreed schedule.
108–109
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Directors’ Remuneration Report
Dear shareholder,
On behalf of the Board and the Remuneration and Social
Responsibility Committee, I am pleased to present EnQuest’s
Directors’ Remuneration Report (‘DRR’) for the financial year
ended 31 December 2025.
The DRR is split into three sections: this Annual Statement; a
summary Remuneration Policy Report and the Annual Report
on Remuneration. EnQuest’s Remuneration Policy was
submitted to shareholders at the 2024 Annual General
Meeting (‘AGM’), receiving 97.44% votes in favour. No changes
are proposed to the Policy this year, and we have again
chosen to show an abridged version of the report which
provides context to the decisions taken by the Committee.
The Annual Report on Remuneration will be subject to an
advisory shareholder vote at the 2026 AGM.
Performance and remuneration outcomes for 2025
Group production in 2025 averaged 45.6 Kboed on a pro
forma basis, 1.3% above the top end of guidance. This
outstanding result was achieved despite the five-week
third-party infrastructure outage which impacted Magnus
production. The Group also met, or beat, its 2025 guidance on
expenditure, successfully managing the impact of a
weakening US Dollar.
EnQuest also continued to deliver diversified growth, including
the acquisition of Harbour Energy’s Vietnam business, the
award of the Block C PSC in Brunei Darussalam and the
acceleration of first gas from the Seligi 1b project in Malaysia.
2025 annual bonus – payable in 2026
The Executive Directors’ annual bonus awards are based on
a combination of financial and operational results and the
achievement of key accountability objectives. The bonus
attainment for Executive Directors was based wholly on
achievement against the Company Performance
Contract (‘CPC’).
In 2025, the target and maximum bonus potential for the
Executive Directors remained unchanged at 75% and 125% of
salary, respectively. Based on performance against the CPC,
the bonus outcome was 83.4% of base salary (66.7% of the
maximum award). The Committee reviewed this formulaic
outcome in the context of factors such as individual
performance, shareholder and employee experience, and
HSE&A performance, and concluded that the final payouts
were appropriate and that no discretionary adjustment was
therefore required. Full details of how these awards were
determined are included on page 114 of this report.
Performance Share Plan (‘PSP’)
The PSP is the primary long-term incentive awarded to
Executive Directors, senior management and other key talent
in the Company. The three-year performance period for the
PSP granted in 2023 ended on 31 December 2025, with vesting
of these awards based 80% on EnQuest’s total shareholder
return (‘TSR’) performance relative to a group of sector
comparators and 20% on reduction of emissions over the
performance period. At the end of the period, both EnQuest’s
relative TSR ranking and emissions-reduction achievement
were below the threshold performance level. As a result, the
2023 PSP will lapse in full in April 2026. Further details are
included on page 115 of this report.
The Committee
remains focused on
ensuring that reward
programmes
effectively incentivise
employees to deliver
EnQuest’s strategic
priorities and
performance
objectives
.
Chair of the Remuneration and Social
Responsibility Committee
Rosalind Kainyah
During the year, PSP awards were granted to both Amjad
Bseisu and Jonathan Copus. In order to recognise EnQuest’s
lower share price compared to historic levels, and to ensure
that Executive Directors do not benefit from potential future
‘windfall gains’, the grant level was maintained at 185% of
salary (scaled back from the normal award level of 250% of
salary). As set out in last year’s report, vesting of these awards
is based on a revised scorecard comprising 40% on relative
TSR, 40% on absolute TSR and 20% on the achievement of an
emissions-reduction target, all measured over a three-year
period. Further details are included on page 115 of this report.
Implementation of the Remuneration Policy in 2026
Base salaries
The Committee approved salary increases of 4.0% for both
Amjad Bseisu and Jonathan Copus with effect from 1 January
2026, in line with the average applied across the broader
North Sea employee population.
2026 annual performance bonus
For 2026, the annual bonus for Amjad Bseisu and Jonathan
Copus will continue to be based 100% on EnQuest’s CPC
outcome, with a target level of 75% of salary and a maximum
of 125% of salary. Details of the performance measures and
weightings are set out on page 115.
2026 PSP awards
Amjad Bseisu and Jonathan Copus will each receive a 2026
PSP award of 185% of salary, lower than the normal award of
250% as was also the case in both 2024 and 2025, recognising
the current share price relative to historic levels. Vesting of the
2026 PSP will continue to be based on a blend of relative TSR,
absolute TSR and emissions-reduction targets weighted 40%,
40% and 20%, respectively. Further details, including targets for
each measure, are set out on page 115.
Conclusion
The Committee and I wish to thank all our shareholders for
their ongoing support over the years. I hope you will support
and vote for this DRR at the forthcoming AGM.
Rosalind Kainyah
Chair of the Remuneration and Social Responsibility
Committee
24 March 2026
The Directors’ Remuneration Report has been prepared in accordance with the
requirements of the Companies Act 2006 and Schedule 8 of the Large and
Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008
as amended in August 2013. It also describes the Group’s compliance with the 2024
UK Corporate Governance Code (the ‘Code’) in relation to remuneration. The
Committee has taken account of the new requirements for the disclosure of
Directors’ remuneration and guidelines issued by major shareholder bodies when
setting the remuneration strategy for the Group.
110–111
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
£2,610
Chief Executive
Below
Threshold
Target
Maximum
Maximum +
50% share
appreciation
47%
33%
20%
100%
£675
£1,432
26%
30%
21%
24%
44%
54%
£3,187
Long-term incentives
Annual bonus
Fixed pay
Remuneration (£’000s)
0
500
1,000
1,500
2,000
2,500
3,500
3,000
Chief Financial Officer
Below
Threshold
Target
Maximum
Maximum +
50% share
appreciation
48%
32%
20%
£962
£458
100%
30%
26%
44%
54%
24%
21%
£1,747
£2,132
Summary Remuneration Policy Report
The current Directors’ Remuneration Policy was approved by shareholders at the AGM held on 30 May 2024 and can be found on
pages 101 to 107 of the 2023 Annual Report and Accounts. A summary of the Policy is set out below for information purposes.
Component
Key terms
Base salary
•
Typically reviewed by the Committee in January each year
•
No prescribed maximum salary or increase. Salary increases for Executive Directors will take
into account the conditions and pay of all employees within the Company
Pension and other benefits
•
Maximum pension allowance of the lesser of 10% of salary and £50,000
•
Benefits reviewed periodically by the Committee and adjusted to meet typical market
conditions. Currently include private medical insurance, life assurance and personal
accident insurance
Annual bonus
•
Maximum bonus opportunity of 125% of salary; target 75% of salary
•
Measures, weightings and targets are set annually by the Committee
•
Any bonus earned over 100% of salary is deferred in shares for two years
•
Discretion to pay dividends on deferred shares at the time of vesting
• Malus and clawback provisions apply
Performance Share Plan (‘PSP’)
•
Normal maximum award of 250% of salary (350% in exceptional circumstances)
•
Threshold performance pays out no more than 25% of maximum
•
Vesting is subject to performance measured over three financial years
•
Vested awards are typically subject to a mandatory two-year holding period
•
Performance measures, weightings and targets are set by the Committee ahead of each
award to reinforce the Company’s strategy. Measures will include relative TSR and ESG
•
Discretion to pay dividends on vested awards at the time of vesting
• Malus and clawback provisions apply
Shareholding guidelines
•
In-post: Executive Directors must build and maintain a minimum shareholding of 200% of
salary within five years of appointment
•
Post-employment: Executive Directors must continue to hold the lower of their in-post
guideline and their actual shareholding on cessation, for at least two years
Chairman and NED fees
•
The Chairman receives an all-inclusive fee which is reviewed annually by the Committee
•
Fees for the NEDs are reviewed annually by the Chairman and Executive Directors
•
NEDs receive a base fee, with additional fees being paid to the Senior Independent Director
and Committee Chairs. Additional fees may also be paid if there is a material increase in
time commitment and the Board wishes to recognise this additional workload
•
Aggregate NED fees are limited by the Company’s Articles of Association
The charts below illustrate the proposed remuneration arrangements for 2026 and provide an indication of the proportion of
total remuneration made up of each component of the Policy and the value of each component.
Annual Report on Remuneration for 2025
The following section provides details of how EnQuest’s Remuneration Policy was implemented during the financial year ended
31 December 2025 and how it will be implemented in 2026.
Remuneration Committee membership in 2025
The Committee’s terms of reference are available either on the Group website, www.enquest.com, or by written request from the
Company Secretariat team at the Group’s London headquarters. The remit of the Committee embraces the remuneration
strategy and policy for the Executive Directors, the Executive Committee, senior management and, in certain matters, for the
whole Group.
As of 31 December 2025, the Remuneration Committee comprised three Non-Executive Directors:
Member
Date appointed Committee member
Attendance at scheduled meetings during the year
Rosalind Kainyah (Chair)
30 May 2024
4 of 4
Farina Khan
1 November 2020
4 of 4
Gareth Penny
15 February 2023
4 of 4
The Committee has four scheduled meetings per year, with five meetings held during 2025.
The Committee invites individuals to attend meetings to provide advice to ensure that the Committee’s decisions are informed
and take account of pay and conditions in the Group as a whole. Those individuals, who are not members but may attend by
invitation, include, but are not limited to (a) the Chief Executive; (b) the Chief Financial Officer; (c) the Company Secretary; (d) a
representative from the Group’s Human Resources department; and (e) representatives from the Committee’s remuneration
adviser. No Director takes part in any decision directly affecting their own remuneration.
Advisers to the Committee
Ellason was appointed as the independent remuneration advisor to the Committee effective August 2022 and retained during
the year. The Committee undertakes due diligence periodically to ensure that Ellason is independent and that the advice
provided is impartial and objective. During 2025, Ellason provided independent advice including updates on the external
remuneration environment, market benchmarks for senior executive roles and Directors’ Remuneration Report drafting support.
Ellason reports directly to the Chair of the Remuneration Committee and does not advise the Company on any other issues.
Their total fees for the provision of remuneration services to the Committee in 2025 were £43,325 (2024: £64,574) on the basis of
time and materials.
Ellason is member and signatory of the Code of Conduct for Remuneration Consultants, details of which can be found at
www.remunerationconsultantsgroup.com. None of the individual Directors have a personal connection with Ellason.
Statement of voting at the Annual General Meeting
The table below summarises the voting at the AGMs held on 27 May 2025 (in respect of the Directors’ Remuneration Report) and
on 30 May 2024 (in respect of the current Directors’ Remuneration Policy). The Group is committed to ongoing shareholder
dialogue and takes an active interest in voting outcomes. Where there are substantial votes against resolutions in relation to
Directors’ remuneration, the reasons for any such vote will be sought, and any actions in response will be detailed here.
Remuneration Report (2024)
Remuneration Policy (2023)
Number of votes cast for
912,605,369
951,492,134
Percentage of votes cast for
96.80%
97.44%
Number of votes cast against
30,168,371
25,026,131
Percentage of votes cast against
3.20%
2.56%
Total votes cast
942,773,740
976,518,265
Number of votes withheld
14,529,978
51,851
Information subject to audit
In this section of the report, payments made to the Executive and Non-Executive Directors of EnQuest for the year ended
31 December 2025, together with comparative figures for 2024 are set out.
Single total figure of remuneration – Executive Directors
Year
Salary
Taxable
benefits
Pension
2
Total fixed
Annual
bonus
3
PSP
Total
variable
Total single
figure
Amjad Bseisu
2025
600
1
50
651
500
0
500
1,152
2024
600
1
50
651
379
0
379
1,030
Jonathan Copus
1
2025
400
0
40
440
334
0
334
774
2024
233
0
23
257
147
0
147
404
Total
2025
1,000
1
90
1,091
834
0
834
1,925
2024
833
1
73
908
526
0
526
1,434
Notes:
Rounding may apply on the numbers provided.
1
Jonathan Copus was appointed as CFO on 1 February 2024 and formally appointed an Executive Director of the Group at the May 2024 AGM. The figures shown in the
table above for 2024 reflect the period between 30 May 2024 and 31 December 2024
2
Cash was provided in lieu of a company pension contribution
3
The amount stated is the full amount (including any portion deferred). Any amount that is above 100% of salary is paid in EnQuest PLC shares, deferred for
two years, and subject to continued employment
Directors’ Remuneration Report
continued
112–113
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Single total figure of remuneration – Non-Executive Directors
Year
Fees
Taxable
benefits
Total single
figure
Year
Fees
Taxable
benefits
Total single
figure
Gareth Penny
2025
200
0
200
2024
200
–
200
Farina Khan
2025
80
0
80
2024
79
–
79
Michael Borrell
4
2025
70
0
70
2024
66
–
66
Rosalind Kainyah
5
2025
70
0
70
2024
41
–
41
Marianne Daryabegui
6
2025
60
0
60
2024
35
–
35
Total
2025
480
0
480
2024
421
–
421
Notes:
Rounding may apply on the numbers provided.
4
Michael Borrell was appointed as Chair of the Sustainability and Risk Committee on 31 May 2024
5
Rosalind Kainyah was appointed to the Board and as Chair of the Remuneration and Social Responsibility Committee on 30 May 2024
6
Marianne Daryabegui was appointed to the Board on 30 May 2024
Incentive outcomes for the year ended 31 December 2025
Annual bonus 2025 – paid in 2026
The Committee’s belief is that any short-term annual bonus should be tied to the overall performance of the Group, measured
through a Company Performance Contract (‘CPC’). An Executive Director’s annual bonus may also be tied to additional
objectives that cover their own specific area of key accountabilities and responsibilities. For Amjad Bseisu and Jonathan Copus,
the 2025 bonus was based wholly on performance against the CPC. The maximum bonus entitlement for the year was 125% of
salary for both Executive Directors.
Company Performance Contract
Details of the CPC for both Amjad Bseisu and Jonathan Copus in 2025 are set out in the following table, showing the
performance conditions and respective weightings against which the bonus outcome was assessed.
In finalising the annual bonus payable, the Committee reviewed the formulaic outcome in the context of factors such as
individual performance, shareholder and employee experience, and HSE&A performance. Noting strong overall performance,
it was resolved that no adjustments should be made.
Measure
Weight
Threshold
Target
Maximum
Actual
Payout
(% max.)
Production
1
(Kboed)
20.0%
40.0
42.0
45.0
45.6
100.0%
Expenditure
Cash opex/capex/abex ($m)
1
5.0%
$766m
$696m
$661m
$673m
84.0%
Expenditure
Cost savings ($m)
5.0%
$10m
$15m
$20m
>$20m
100.0%
Regulatory, ESG and culture
Scope 3 emissions reporting
2.0%
1 Cat.
2 Cat.
3 Cat.
3 Cat.
100.0%
Regulatory, ESG and culture
8.0%
Other defined regulatory projects
2
Partial
80.0%
Liquidity management
Net debt
10.0%
500
450
400
434
72.0%
Balance sheet management
Projects that support liquidity
10.0%
Projects to support liquidity and
growth
2
Partial
78.0%
Growth
Deliver against growth and business development projects
17.5%
Based on delivery of existing projects
and work on possible future projects
2
Partial
32.1%
Growth
Deliver against M&A project
20.0%
Partial
Deliver
1
Deliver 1
Partial
30.0%
Growth
2.5%
Investor relations objectives
2
Achieved
100.0%
Total CPC outcome before Committee discretion (% of maximum)
66.7%
Committee discretion
‑
Total CPC outcome (% of maximum)
66.7%
Notes:
Rounding has been applied to percentages. In relation to the financial measures, threshold, target and stretch performance pays out at 0%, 60% and 100% of maximum
respectively and on a straight-line basis in between threshold and target performance and between target and stretch performance. For other measures, threshold
performance pays out at 30% of maximum.
1
Targets and outcomes assessed on a like-for-like pro forma basis
2
Each of these measures was based on objective targets which were assessed by the Remuneration Committee following year end. It is the Committee’s view that the
specific targets remain commercially sensitive and therefore we have chosen not to disclose these in full
2025 annual bonus outcome
Director
Salary
Max. bonus
(% salary)
Overall
outcome
(% max.)
Overall
outcome
(% salary)
2025 bonus
(£)
Paid as cash
(£)
Deferred in
shares (£)
Amjad Bseisu
£600,000
125.0%
66.7%
83.4%
£500,438
£500,438
£0
Jonathan Copus
£400,000
125.0%
66.7%
83.4%
£333,625
£333,625
£0
2023 PSP awards that vest in 2026 (based on performance to 31 December 2025)
The PSP award made to Executive Directors on 25 April 2023 was based on performance to the year ended 31 December 2025
and will vest on 25 April 2026. The performance targets for this award and actual performance against those targets over the
three-year financial period were as follows:
Measure
Weight
Threshold
(25% vesting)
Maximum
(100% vesting)
Actual
Vesting
outcome
(% max.)
Relative TSR
1
80%
50th percentile
75th percentile
20th percentile
0.0%
Emission reduction
20%
10% reduction
12% reduction
4.7% reduction
0.0%
Total PSP vesting (% of maximum)
0.0%
Notes:
Straight-line vesting between Threshold and Maximum.
1
The TSR comparators for the 2023 PSP cycle were Aker BP, BW Energy, Capricorn Energy (formerly Cairn Energy), DNO, Energean, Genel Energy, Gulf Keystone Petroleum,
Harbour Energy (formerly Premier Oil), Hibiscus Petroleum, Hurricane Energy, Ithaca, Jadestone, Jersey Oil & Gas, Kistos, Kosmos Energy, Maurel & Prom, Meren Energy,
OKEA, Pharos Energy, Serica Energy and Tullow Oil. Hurricane Energy was tracked as a comparator until its acquisition by Prax Group in June 2023 and thereafter the
median of the remaining comparator group was tracked instead
The table below shows the number of nil cost options awarded on 25 April 2023 that will vest on 25 April 2026 and their value as
at 31 December 2025. Jonathan Copus did not have a 2023 PSP award.
Director
Number of
shares held
Vesting
outcome
(% max.)
Number of
shares
vesting
Valuation
share price
(£)
Value at
31 Dec 25 (£)
Amjad Bseisu
8,102,723
0.0%
0
n/a
£0
Scheme interests awarded during the year ended 31 December 2025
April 2025 PSP award grant
After due consideration of Business performance in 2024, the Remuneration and Social Responsibility Committee awarded the
Executive Directors the following performance shares on 16 April 2025. As set out in last year’s report, in order to reflect the
volatility of the Company’s share price and ensure Executive Directors do not benefit from potential future ‘windfall gains’, the
grant level was maintained at 185% of salary (scaled back from the normal award level of 250% of salary).
Director
Face value
awarded
(% salary
1
)
Face value
at grant (£)
Number of
shares
granted
2
Amjad Bseisu
185%
£1,110,000
8,453,922
Jonathan Copus
185%
£740,000
5,635,948
Notes:
1
PSP awards are calculated with reference to the salary in effect at the end of the previous financial year, where available
2
Based on the average middle market quote for the three days preceding the date of grant on 26 April 2025 of 13.13 pence
Performance measures, weightings and targets applying to the 2025 PSP share awards are set out below. The performance
period for the award is 1 January 2025 to 31 December 2027, with any shares vesting thereafter subject to a mandatory two-year
holding period.
Measure
Weight
Threshold (25% vesting)
Maximum (100% vesting)
Relative TSR
1
40%
50th percentile
75th percentile or higher
Absolute TSR
2
40%
17.0p
22.0p or higher
Emission reduction
3
20%
25.0% reduction
41.3% reduction or more
Notes:
Straight-line vesting between Threshold and Maximum.
1
The TSR comparators for the 2025 PSP cycle are Capricorn Energy, Energean, Gulf Keystone Petroleum, Harbour Energy, Hibiscus Petroleum, Ithaca Energy, Jersey Oil &
Gas, Kistos, Serica Energy and Tullow Oil
2
Average share price over the period 1 October 2027 to 31 December 2027, plus any dividends paid FY25-FY27
3
Reduction at the end of 2027 relative to 2018 baseline
Directors’ Remuneration Report
continued
114–115
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Statement of Directors’ shareholding and share interests
The interests of the Directors in the share capital of the Company as at 31 December 2025 are shown below. The table shows for
unvested awards the maximum number of shares that could be released if awards were to vest in full. These awards first vest on
the third anniversary of the award date, subject to the achievement of performance conditions (as described elsewhere in this
or previous reports). Awards granted to Executive Directors are subject to an additional two-year holding period which, unless
the Committee determines otherwise, will apply up to the fifth anniversary of the date of grant.
Director
31 Dec 2023
Granted
Lapsed
31 Dec 2024
Vesting period
Expiry date
Amjad Bseisu
3,343,689
-
3,343,689
-
25 Apr 2022 – 24 Apr 2025
24 Apr 2032
8,102,723
-
-
8,102,723
25 Apr 2023 – 24 Apr 2026
25 Apr 2033
6,054,872
-
-
6,054,872
24 Apr 2024 – 23 Apr 2027
24 Apr 2034
-
8,453,922
-
8,453,922
17 Apr 2025 – 16 Apr 2028
17 Apr 2035
Jonathan Copus
4,718,390
-
-
4,718,390
24 Apr 2024 – 23 Apr 2027
24 Apr 2034
-
5,635,948
-
5,635,948
17 Apr 2025 – 16 Apr 2028
17 Apr 2035
Statement of Directors’ shareholdings and share interests
Executive Directors are currently required to build up and hold shares in the Company worth 200% of salary and are expected to
retain 50% of shares from vested awards under the PSP (other than sales to settle any tax or social security withholdings due)
until they hold at least 200% of salary in shares (this includes shares which are beneficially owned directly or indirectly by family
members of an Executive Director).
Director
Legally Owned
shares
Value of
Legally
Owned
shares
1,2
Unvested and
subject to PSP
perf. conditions
Vested but
not
exercised
under the
PSP
Sharesave
Executive
deferrals
Total at 31 Dec
2025
Value of
holding
1,2
Amjad Bseisu
3
234,732,857
4276%
22,611,517
6,791,760
-
72,475
264,208,609
4339%
Jonathan Copus
0
-
10,354,338
-
-
-
10,354,388
0%
Gareth Penny
4
62,500
-
-
-
-
-
62,500
-
Farina Khan
211,235
-
-
-
-
-
211,235
-
Michael Borrell
129,829
-
-
-
-
-
129,829
-
Rosalind Kainyah
0
-
-
-
-
-
0
-
Marianne Daryabegui
168,160
-
-
-
-
-
168,160
-
Notes:
1
Shares are valued by taking the average closing share price on each trading day of the period 1 October 2025 to 31 December 2025
2
The value of shareholding as a percentage of salary is calculated by combining the number of legally owned shares with the net of tax value of vested PSP awards and
executive deferrals
3
As at 31 December 2025, 201,881,058 shares were held by Double A Limited, a company beneficially owned by the extended family of Amjad Bseisu. 32,674,840 shares
were also held by The Amjad and Suha Bseisu Foundation and the remaining 176,959 shares were held by Amjad Bseisu directly
4
62,500 shares are held by Gareth Penny. As disclosed on page 120, 74,547 shares are separately held by Kate Penny, his wife
Exit payments and payments to past Directors
There have been no exit payments during the year ended 31 December 2025. Former Director, Salman Malik retained 5,253,939
shares under the 2023 PSP cycle which will lapse in full on 25 April 2026. He retains a further 2,018,422 shares in the 2024 PSP cycle.
Information not subject to audit
Total Shareholder Return and Chief Executive total remuneration
The following graph shows the Company’s performance, measured by TSR, compared with the performance of the FTSE AIM
All-Share Oil & Gas, also measured by TSR. The FTSE AIM All-Share Oil & Gas index has been selected for this comparison as it is
the index whose constituents most closely reflect the size and activities of EnQuest.
Dec 23
Dec 25
Dec 24
Dec 22
Dec 21
EnQuest PLC
FTSE AIM All-Share Oil & Gas Index
Dec 15
Dec 16
Dec 17
Dec 18
Dec 19
Dec 20
£300
£250
£200
£150
£100
£50
£0
Historical Chief Executive pay – ‘single figure’ history
The table below sets out details of the Chief Executive’s pay for 2025 and the previous nine years and the payout of incentive
awards as a proportion of the maximum opportunity for each period. The Chief Executive’s pay is calculated as per the ‘single
figure’ of remuneration shown elsewhere in this report. During this time, Amjad Bseisu’s total remuneration has been:
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
CEO ‘single figure’ (£000)
941
998
1,306
1,275
1,244
1,658
1,782
1,221
1,030
1,152
Annual bonus (% of max.)
33
57
79
81
60
65
74
67
50
67
PSP vesting (% max.)
56
11
56
50
64
44
75
20
0
0
CEO pay ratio
The CEO pay ratio has been calculated using the ‘Option A’ methodology which compares the single total figure of remuneration
of the CEO to UK employees for the 12 months ending 31 December 2025 on a full-time equivalent basis. This methodology
has been chosen as it offers the most accurate and preferred approach for companies to apply based on institutional
investor guidelines.
Financial year
1
Methodology
P25 (lower quartile)
P50 (median)
P75 (upper quartile)
2025
2
A
12:1
10:1
9:1
2024
A
11:1
9:1
8:1
2023
A
13:1
11:1
9:1
2022
A
25:1
20:1
17:1
2021
A
15:1
13:1
11:1
2020
A
14:1
12:1
10:1
2019
A
23:1
14:1
11:1
Notes:
1
For 2019-2024, the pay ratios shown are as disclosed in the relevant year’s report
2
For 2025, the single figure of total remuneration of the individuals at P25, P50 and P75 was £98,194, £119,259 and £134,668 respectively. The base salaries of the same
individuals were £82,592, £97,339 and £113,834 respectively
Total remuneration is as defined in the single total figure of remuneration for Executive Directors. EnQuest has determined the
P25, P50 and P75 individuals with reference to a ranking of total remuneration and by identifying those employees with the most
typical pay structure of a UK-based employee. All employees have been included as at 31 December 2025, with remuneration of
part-time employees and those employees on statutory leave included on a full-time equivalent basis. The increase in the CEO
pay ratio in 2025 can be attributed to a higher bonus outcome.
In setting both the CEO remuneration and the remuneration structures for the wider UK workforce, EnQuest has adopted a
remuneration structure which includes the same elements for employees at all levels (base pay, benefits, pension, cash bonus
and share awards). While all employees receive a base salary that is market competitive for their role and commensurate with
our business size, differences exist in the quantum of variable pay that is achievable by the senior executive team and by
individuals at senior management levels within the Group. At these levels, where there is a greater opportunity to influence
Group performance, there is a greater emphasis on aligning executives with shareholders. Based on this distinction, the Group
believes that the median pay ratio is consistent with the wider pay, reward and progression policies impacting UK employees.
Relative spend on pay
The table below shows the actual expenditure of the Group on total employee pay, as well as profitability and distributions to
shareholders, and the change between the current and previous years:
2024 ($m)
2025 ($m)
Change
Adjusted EBITDA
1
673
504
(25)%
EnQuest net debt
386
434
12%
Distribution to shareholders
9
15
67%
Total employee pay
91
88
(3)%
Notes:
1
Adjusted EBITDA has been chosen as an appropriate measure of return to shareholders and net debt as a measure of EnQuest’s commitment to its lenders (see Glossary
– Non-GAAP measures on page 192 for how these are calculated)
Directors’ Remuneration Report
continued
116–117
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Change in Directors’ pay relative to the workforce
These tables show the percentage change in remuneration of EnQuest Directors and employees over time. Executive Director
remuneration includes base salary, benefits (including employer pension contribution and/or allowance) and annual bonus.
Non-Executive Director remuneration includes base fee and any additional fees paid, and any other benefits. Data is shown on a
full-time equivalent basis. UK employees have been chosen as the most appropriate comparator group as the majority of the
EnQuest workforce is UK based and their pay structure is comparable to the Directors’ pay based on annualised amounts paid
in 2024 and 2025.
Director
1
Base salary/fees
Benefits
2024
to 2025
2023
to 2024
2022
to 2023
2021
to 2022
2020
to 2021
2024
to 2025
2023
to 2024
2022
to 2023
2021
to 2022
2020
to 2021
Amjad Bseisu
0
17
4
3
5
0
0
10
0
0
Jonathan Copus
0
n/a
n/a
n/a
n/a
0
n/a
n/a
n/a
n/a
Gareth Penny
0
0
0
n/a
n/a
n/a
n/a
n/m
n/a
n/a
Farina Khan
2
20
(23)
42
0
n/a
n/a
n/a
n/a
n/a
Michael Borrell
6
13
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Rosalind Kainyah
0
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Marianne Daryabegui
0
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
UK employees (avg)
0
4
4
3
0
0
0
10
0
0
Bonus
2
2024
to 2025
2023
to 2024
2022
to 2023
2021
to 2022
2020
to 2021
Amjad Bseisu
32
(12)
(7)
17
9
Jonathan Copus
32
n/a
n/a
n/a
n/a
UK employees (avg)
(34)
2
10
(7)
3
Notes:
n/a – not applicable; n/m – not meaningful
1
Changes in Directors and responsibilities during the 2024 and 2025 financial years which are relevant to the calculations above are as follows:
a. Michael Borrell was appointed as Chair of the Sustainability and Risk Committee on 31 May 2024
b. Rosalind Kainyah was appointed to the Board and as Chair of the Remuneration and Social Responsibility Committee on 30 May 2024
c. Marianne Daryabegui was appointed to the Board on 30 May 2024
2
Jonathan Copus’ percentage change in bonus is calculated on a full year proforma basis with respect to the 2024 bonus value. The vast majority of UK-based
employees directly support the North Sea business and have a proportion of their bonus based on the performance of the business unit reflected in their annual bonus
payment. The figures shown are reflective of any bonus earned during the respective financial year. Non-Executive Directors are not eligible to participate in the annual
bonus scheme and therefore no data is shown for them in the annual bonus table
Statement of implementation of the Remuneration Policy for the year ending 31 December 2026
Base salaries and 2026 pay review
As stated in the annual statement to this report, the remuneration for the Executive Directors is geared towards variable pay
linked to long-term performance targets, with base salaries currently set in relation to benchmarks for the energy industry and
comparable sized companies. In the view of the Committee, it is therefore important to ensure that the base salaries of the
Executive Directors are reviewed annually and that any increase reflects the change in scale and complexity of the role, as well
as the performance of the Executive Director. Following its latest review, the Committee approved a 4.0% increase for both Amjad
Bseisu and Jonathan Copus with effect from 1 January 2026:
Salary for 2025
Salary for 2026
Increase
Amjad Bseisu
£600,000
£624,000
4.0%
Jonathan Copus
£400,000
£416,000
4.0%
The budgeted salary uplift for Group employees was 4%, although individual uplifts varied according to individual experience
and performance.
Pension and other benefits
The Group will continue to pay a cash benefit in lieu of pension of the lesser of 10% of salary or £50,000 (the CEO receives the
pension benefit at the capped level). The Group will also continue to pay private medical insurance, life assurance and personal
accident insurance, the costs of which are determined by third-party providers.
Annual bonus
For the year ended 31 December 2026, annual bonus opportunities for the Executive Directors will remain unchanged and in line
with the Policy of 75% of salary at target and 125% of salary at maximum. Any amount of bonus earned above 100% of salary will
be deferred into EnQuest shares for two years, subject to continued employment.
As in previous years, annual bonuses will be based on a combination of financial and operational results and the achievement
of key accountability objectives. The bonus for both Executive Directors will continue to be based wholly on achievement against
the Company Performance Contract (‘CPC’).
CPC metric categories and weightings are set out in the table below. Reflecting concerns around commercial sensitivity, precise
targets have not been disclosed in advance; to the extent that the targets are no longer commercially sensitive, they will be
disclosed in next year’s report. Each specific metric will have threshold, target and stretch performance levels defined.
Metric category
Weight
Production
17.5%
Expenditure
10.0%
Regulatory, ESG and culture
6.0%
Liquidity management
7.5%
Balance sheet management
15.0%
Growth
44.0%
Performance in HSEA is central to EnQuest’s overall results and so, as in previous years, this category may be used as an overlay
on overall Group performance.
Performance share awards
Amjad Bseisu and Jonathan Copus will each receive a 2026 PSP award of 185% of salary, lower than the normal award of 250%,
recognising the current share price relative to historic levels. Consistent with last year, the 2026 PSP will be based on a blend of
relative TSR, absolute TSR and emissions reduction targets weighted 40%, 40% and 20%, respectively, as shown in the table below.
The Committee, at its 3 February 2026 meeting, determined that the Absolute TSR targets should be consistent with those set for
the 2025 award noting that EnQuest’s three-month average share price to 31 December 2025 is similar to that when the
Committee set targets last year. The Committee is aware that, at the time of finalising this report, certain global events had
impacted the oil price with some benefits to the Company’s share price; the Committee will take this into account at the time of
vest to ensure overall PSP vesting is reflective of underlying company performance. The emission reduction targets have been
increased and reflect the trajectory implied by the North Sea Transition Deal and a more stretching target of 55% emissions
reduction by 2030.
Measure
Weight
Threshold (25% vesting)
Maximum (100% vesting)
Relative TSR
1
40%
50th percentile
75th percentile or higher
Absolute TSR
2
40%
17.0p
22.0p or higher
Emission reduction
3
20%
33.3% reduction
45.8% reduction or more
Notes:
Straight-line vesting between Threshold and Maximum.
1
The TSR comparators for the 2026 PSP cycle are Capricorn Energy, Energean, Gulf Keystone Petroleum, Harbour Energy, Hibiscus Petroleum, Ithaca Energy, Jersey Oil &
Gas, Kistos, Serica Energy and Tullow Oil
2
Average share price over the period 1 October 2028 to 31 December 2028, plus any dividends paid FY26-FY28
3
Reduction at the end of 2028 relative to 2018 baseline
Non-Executive Director fees
The fees for the Non-Executive Directors with effect from 1 January 2026 are as follows:
Fee for 2025
Fee for 2026
Increase
Chairman
£200,000
£208,000
4%
Director
£60,400
£62,400
4%
Senior Independent Director additional fee
£10,000
£10,000
0%
Committee Chair additional fee
£10,000
£10,000
0%
Rosalind Kainyah
Chair of the Remuneration and Social Responsibility Committee
24 March 2026
Directors’ Remuneration Report
continued
118–119
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Sustainability and Risk Committee report
As our portfolio
expands globally,
our commitment to
safe, sustainable
and well-governed
growth remains
unchanged.
Chair of the Sustainability
and Risk Committee
Michael Borrell
Dear shareholders
On behalf of the Board and my fellow Committee members, I
am pleased to present the report for the Sustainability and
Risk Committee.
Providing rigorous oversight of risk and sustainability remains
central to the Committee’s mandate. It ensures that the
Group operates within an appropriate controls framework
and sustainability initiatives are robust, forward-thinking, and
capable of withstanding challenges. During the year, the
Committee continued to provide oversight of the Group’s risk
management framework, with focus on emerging and
strategic risks. The Committee reviewed the Group’s progress
toward its net zero pathway, including the appropriateness of
interim decarbonisation milestones, their linkage to Executive
Directors’ targets, supporting near-term action and
investment plans and the proposed material controls
framework to mitigate principal risks.
The Group also has several processes in place to provide
effective internal control, including reviews of fraud,
anti-bribery and whistleblowing policies and a risk
management framework under which controls, and their
effectiveness, are managed and evaluated.
Climate, new energy and decarbonisation
During 2025, the Committee continued to focus on climate
change and EnQuest’s alignment with current and upcoming
sustainability disclosure requirements. Key areas of attention
included development of EnQuest’s TPT roadmap to support
IFRS-aligned disclosures, approaches to comply with the
import requirements associated with EU import requirements
and ongoing discussions surrounding the evolution of
EnQuest’s wider sustainability strategy.
EnQuest continues to make strong progress in reducing
operational emissions. Under the UK Government’s North Sea
Transition Deal, the industry is required to achieve reductions
of 10% by 2025, 25% by 2027, and 50% by 2030 relative to a 2018
baseline. EnQuest has already surpassed the 2025 and 2027
milestones, with 2025 operational emissions achieving a 46%
reduction in combined Scope 1 and Scope 2 emissions
against the 2018 baseline, comfortably outperforming the
interim NSTA targets and demonstrating sustained delivery of
the Group’s emissions-reduction initiatives. To maintain
integrity and comparability in its emissions reporting
trajectory, the Group’s emissions-reduction baseline has
been adjusted to account for the Vietnam acquisition being
added to EnQuest’s operational asset base.
Over the year, the Committee also reviewed progress on
asset-level decarbonisation, assessed both short and
medium-term opportunities within the decarbonisation
pipeline, and monitored developments in evolving UK
governance and sustainability reporting requirements
to ensure the Group remains fully prepared for future
regulatory expectations.
HSE & Asset integrity (‘HSEA’)
The health and safety of our personnel remains a key priority
for the Group. Throughout 2025, the Committee continued to
undertake detailed analysis of specific risk areas to ensure
that asset integrity and the safety of our personnel are
not compromised.
The Committee believes that significant progress has been
made in relation to this risk focus area. Asset integrity
management within the Group is risk based, proportionate
and focused and relevant risks are considered as part of the
budget process. Engagement with the Health and Safety
Executive (‘HSE’) and Offshore Petroleum Regulator for
Environment and Decommissioning (‘OPRED’) remained
positive throughout 2025 with no enforcement action
following an active inspection programme. The same positive
relationship extends to the regulators in South East Asia. The
business has continued to build on its Process Safety
Leadership foundations in terms of people, process and plant.
Personal safety performance was excellent in Malaysia with
zero lost time incidents in 2025. However, performance was
challenged in the North Sea and Vietnam, particularly in
respect of lagging indicators associated with routine tasks at
site. The Committee and Board spent considerable time
reviewing the performance to understand the underlying
trends and improvement plans and the Committee considers
that the learning culture within the Group ensures that the
causes of incidents are established, shared and action plans
adequately implemented to prevent recurrence. Reflecting
the desire for improved performance, the Group’s integrated
HSEA Continuous Improvement Plan focuses on the key areas
to drive enhanced performance during 2026 and future years.
Risk Management Framework
The Group has a robust Risk Management Framework, which
the Committee reviews regularly to ensure that it reflects the
full extent of risks and controls in a rapidly evolving sector. In
2025, the Committee discussed the evolved treatment of risk
and other upcoming changes in the Financial Reporting
Council’s 2024 Corporate Governance Code, specifically
provision 29, and approved enhancements to specific risk
areas. In 2025, the Committee held several joint meetings with
the Audit Committee to prepare for the Directors’ 2026 Annual
Report declaration on the effectiveness of material controls.
Together, the Committees refined the Group’s principal risks to
ensure appropriate strategic focus and have progressed
documentation of the Controls Framework for material
controls identified. This documentation, including an updated
assurance plan aligned with the existing assurance
framework, will support the Board in making the declaration in
line with the Corporate Governance Code.
Technical and reserves
During the year, the Committee reviewed several business
development opportunities and the technical assumptions
underpinning them and was satisfied with both the process
and outcome.
It has been an exciting year in South East Asia, with the
expansion of the Seligi gas agreement in Malaysia, and three
new country entries via completion of the Vietnam acquisition
in early July 2025 to being awarded an operated production
sharing agreement for Block C in Brunei. EnQuest also signed
Production Sharing Contracts for the Gaea and Gaea II
exploration blocks, located in Papua Barat, Indonesia with
the bp-led Tangguh partnership that entrusted EnQuest with
operatorship of these important blocks. These exciting
portfolio additions provide a clear pathway for
EnQuest to grow in the region and reinforce its strong
operational delivery.
I am confident that this Committee will continue to make a
very positive impact with regard to the Group’s asset strategy,
risk management framework, investment opportunities and
net zero ambition.
Michael Borrell
Chair of the Sustainability and Risk Committee
24 March 2026
Sustainability and Risk Committee membership
The Committee having appointed new members, provides its
membership in the table below:
Member
Date appointed
Committee
member
Attendance at
meetings during
the year
Michael Borrell
Rosalind Kainyah
Marianne Daryabegui
30 August 2023
30 May 2024
30 May 2024
3/3
3/3
3/3
Committee responsibilities
The main responsibilities of the Committee are to:
•
conduct in-depth analysis of Company risks as requested
by the Board or identified by the Committee;
•
support and enhance the Group’s Risk Management
framework;
•
conduct detailed reviews of key non-financial risks not
reviewed within the Audit Committee; and
•
undertake additional actions as directed by the Board in
relation to technical, reserves, business development, HSE,
risk and sustainability issues.
The Committee’s full terms of reference can be found on the
Group’s website, www.enquest.com/investors/corporate-
governance.
Committee activities during the year
Over the year, the Sustainability and Risk Committee covered
the following matters:
•
Reviewed HSEA processes and culture and the Group’s Risk
Management Framework; including continuous
improvement planning
•
Assessed the Group Risk Register, assurance map and
Risk Report, ensuring climate-related risks were
appropriately integrated
•
Received routine updates on the Group’s HSEA
performance, emission reduction progress and targets and
contributions to the United Nations SDG 12
•
Received routine updates on the Group’s reserves, business
development efforts and business planning; and broader
market opportunities to promote the Group’s strategy
For further information on these risks, please see the Risks and
uncertainties section on pages 65 to 73.
Priorities for the coming year
In 2026, the Committee will continue to focus on core risk
areas, technical and reserves matters, business development,
HSE and sustainability. Key priorities include improving
personal safety performance of contractors, deliver a process
safety competency roadmap and progress emission
reduction commitments. The Committee will continue to
ensure alignment with the Group’s long-term value and
growth ambitions.
120–121
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
The Directors of
EnQuest
present
their Annual Report
together with the
Group and Company
audited financial
statements.
Company Secretary
Kate Christ
Directors’ report
Corporate governance statement
The Group’s corporate governance statement is set out on
pages 96 to 99 and the Audit Committee report is set out on
pages 103 to 109. Both are incorporated into the Directors’
report by reference.
Directors
The biographical details of all persons who served as
Directors of the Company during the financial year ended
31 December 2025 are set out on pages 92 to 93.
Directors’ indemnity provisions
Under the Company’s Articles, the Directors of the Company
may be indemnified out of the assets of the Company
against certain costs, charges, expenses, losses or liabilities
which may be sustained or incurred in or about the execution
of their duties. Such qualifying third-party indemnity
provisions were in force during the financial year ended
31 December 2025 and remain in force as at the date of
approving this Directors’ report. Former Directors also
received indemnities for the period for which they were
Directors of the Company. Such indemnities are in a form
consistent with the limitations imposed by law.
Substantial interests in shares
The table below shows the holdings in the Company’s issued
share capital at 31 December 2025, which had been notified
to the Company in accordance with Chapter 5 of the
Disclosure Guidance and Transparency Rules (‘DTR’). Between
31 December 2025 and the date of this report, the Company
received notification from Cobas Asset Management
disclosing an interest of 6.98%:
Name
% of issued share
capital held at
31 December 2025
2
Bseisu consolidated interests
1
12.45
Aberforth Partners LLP
11.25
Cobas Asset Management
9.12
Hargreaves Lansdown Asset
5.66
Schroders Plc
6.01
Avanza Bank AB (SE)
3.20
Notes:
1
See Directors’ interests on below for breakdown of holding
2 Rounding applies
Directors’ interests
The interests of the Directors and their connected persons in
the Ordinary shares of the Company, which are unchanged
between 31 December 2025 and 26 March 2026, are shown
below:
Name
Shares owned
outright 24
March 2026
Amjad Bseisu
1
234,732,857
Jonathan Copus
–
Gareth Penny
2
137,047
Michael Borrell
129,829
Rosalind Kainyah
–
Marianne Daryabegui
168,160
Farina Khan
211,235
Notes:
1
201,881,058 shares are held by Double A Limited, a company beneficially owned
by the extended family of Amjad Bseisu. 32,674,840 shares are also held by The
Amjad and Suha Bseisu Foundation and 176,959 shares are held directly by
Amjad Bseisu
2
62,500 shares are held directly by Gareth Penny, with a further 74,547 shares
held by his wife, Kate Penny
Share capital
The Company’s share capital during the year consisted of
Ordinary shares of £0.05 each (‘Ordinary shares’). Each
Ordinary share carries one vote. At the start of 2025, there
were 1,885,029,503 Ordinary shares in issue. The Company
confirms that there are no specific limitations on the holding
of its securities.
At the 2025 Annual General Meeting (‘AGM,’) an ordinary
resolution was passed authorising the Directors to allot new
Ordinary shares up to a nominal value of £30,997,392,
equivalent to one-third (33.33%) of the issued share capital of
the Company. This resolution also authorised the Directors to
allot up to two-thirds (66.67%) of the total issued share capital
of the Company, although only in the case of a rights issue. A
further special resolution was passed to effect a disapplication
of pre-emption rights for a maximum of 20% of the issued
share capital of the Company. These authorities are valid until
the 2026 AGM or 30 June 2026, whichever is sooner. The
Directors propose to renew each of these authorities at the
2026 AGM to be held on 22 May 2026.
The Company was also authorised by shareholders at the
2025 AGM to purchase its own Ordinary shares in the market
of up to a limit of 10% of its issued share capital, subject to
certain conditions laid out in the authorising resolution. At the
2026 AGM, shareholders will be asked to renew authorities
relating to the issue and purchase of Company shares.
Details of the resolutions are contained in the Notice of AGM,
which can be found on the Company’s website at
https://www.enquest.com/investors/shareholder-information/
annual-general-meetings.
At 31 December 2025 there were 1,885,029,503 Ordinary shares
in issue, with 20,000,000 being held in Treasury. All of the
Company’s issued Ordinary shares have been fully paid up.
Further information regarding the rights attaching to the
Company’s Ordinary shares can be found in note 19 to the
financial statements on page 168. No person has any special
rights with respect to control of the Company.
The Company’s Ordinary shares are listed on the London
Stock Exchange.
Company share schemes
Shares are held in an employee benefit trust (‘EBT’) for the
purpose of satisfying awards made under the various
employee share plans. In 2025, the EBT was allotted 5,000,000
Ordinary shares, which had been held in Treasury for the
purpose of satisfying the EBT. At year end, the EBT held 0.21% of
the issued share capital of the Company for the benefit of
employees and their dependants. 20,000,000 Ordinary shares
are being held in Treasury, to be issued to the EBT as required.
The voting rights in relation to these shares are exercised by the
Trustees, who may vote the shares they hold at their discretion.
In addition, as required to be disclosed in accordance with
Listing Rule 6.6.1 R, the Trustees of the EBT have waived its rights
to receive dividends on the shares it holds.
Employee engagement
The Board recognises the importance of maintaining an open
dialogue with employees and understands that effective
engagement supports the long-term success of the
Company. Employees are informed about noteworthy
business issues and other matters of concern via country-
level Town Hall meetings, Global Town Hall meetings (whereby
staff in all geographic locations are invited to attend), email
and other in-person and electronic communications,
particularly the Company’s intranet and internal ‘Viva Engage’
channel. During the year, employee engagement was
primarily undertaken through regular Company-wide town
hall meetings, which provided an opportunity for senior
management to communicate business performance,
strategic priorities and key developments, and for employees
to ask questions and provide feedback.
Face-to-face briefing meetings are used along with virtual
communications to ensure all employees have the opportunity
to participate. Appropriate consultations take place with
employees when business change is undertaken. Rosalind
Kainyah remained the Designated Director for Employee
Engagement in 2025 and continues to meet with global
employees via the Employee Forum. As a Designated Director,
Rosalind has the responsibility to ensure the Board gets a clear
understanding of the views of employees in accordance with
the requirement of the Corporate Governance Code.
The Board will continue to keep its approach to employee
engagement under review.
Staff have historically had access to the HMRC-approved
Save As You Earn (‘SAYE’) Scheme as part of its wider
approach to share ownership. However, no SAYE invitation was
operated during 2025. Participation in the Performance Share
Plan is limited to eligible senior employees.
Articles of Association
The Company’s Articles of Association may only be amended
by special resolution at a General Meeting of shareholders.
The Company’s Articles, found on the Company’s website at
https://www.enquest.com/investors/corporate-governance,
contain provisions on the appointment, retirement and
removal of Directors, along with their powers and duties.
Directors are submitted for re-election at every AGM and
appointments are made by a separate resolution. The
Company also reserves the right to remove a Director before
expiration of their term by special resolution.
The rights and obligations relating to the Company’s Ordinary
shares are set out in the Articles of Association. Holders of
Ordinary shares are entitled to attend, speak and vote at
general meetings. In a vote on a show of hands, every
member present in person or every proxy present, who has
been duly appointed by a member, will have one vote and on
a poll every member present in person or by proxy shall have
one vote for every ordinary share held. These rights are subject
to any special terms as to voting upon which any shares may
be issued or may at the relevant time be held and to any other
provisions of the Company’s Articles of Association. Under the
Companies Act 2006 and the Articles of Association, directors
have the power to suspend voting rights and, in certain
circumstances, the right to receive dividends in respect of
shares where the holder of those shares fails to comply with a
notice issued under section 793 of the Companies Act 2006.
Subject to the provisions of the Companies Act 2006, all or
any of the rights attaching to an existing class of shares may
be varied from time to time, either with the consent in writing
of the holders of not less than three-quarters in nominal value
of the issued shares of that class (excluding any treasury
shares) or with the sanction of a special resolution passed at
a separate general meeting of the holders of those shares.
Annual General Meeting
The Company’s AGM will be held at Ashurst LLP, London Fruit &
Wool Exchange, 1 Duval Square, London, E1 6PW, United
Kingdom on 22 May 2026. Formal notice of the AGM, including
details of special business, is set out in the Notice of AGM
which accompanies this Annual Report. It is available on the
Group’s website at https://www.enquest.com/investors/
shareholder-information/annual-general-meetings.
Registrars
The Company’s Ordinary shares are traded on the London
Stock Exchange. The Company’s share registrar is MUFG
Corporate Markets, details of which can be found in the
Company information section on the inside back cover of the
Annual Report.
122–123
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Political donations
At the 2025 AGM, a resolution was passed giving the
Company authority to make political donations and/or incur
political expenditure as defined in Sections 362 to 379 of the
Companies Act 2006. Although the Company does not make
and does not intend to make political donations or to incur
political expenditure, the legislation is very broadly drafted
and may catch such activities as funding seminars or
functions to which politicians are invited, or may extend to
bodies concerned with policy review, law reform and
representation of the business community that the Company
and its subsidiaries might wish to support.
No political donations were made in 2025 by the Company, or
any of its subsidiaries (2024: no donations).
Dividends
The Company declared a final ordinary dividend of 0.616
pence per share (equivalent to c.$15 million) in 2025. In 2026,
the Board of Directors are proposing a final ordinary dividend
of 0.801 pence per share (equivalent to c.$20 million), see note
8 on page 157.
Any future shareholder distributions will be reviewed in the
context of the Company’s expected future cash flows and the
Board’s aims of preserving a balanced programme of
value-led and growth-focused organic and inorganic
investment. Future distributions remain subject to the
earnings and financial condition of the Company meeting the
conditions for shareholder distributions which the Company
has agreed with its lenders and such other factors as the
Board of Directors of the Company consider appropriate,
including the requirements of the Companies Act.
Change of control agreements
The Company (or other members of the Group) are not party
to any significant agreements which take effect, alter or
terminate upon a change of control of the Company following
a takeover bid, except in respect of:
(a) the secured Reserve Based Lending facilities
agreement, which includes provisions that, upon a
change of control, permit each lender not to provide
certain funding under that facility and to cancel its
commitment to provide that facility and to require
repayment of the credit which may already have been
advanced to the Company and the other borrowers under
the facility;
(b) the deeds of indemnity, pursuant to which the sureties
have agreed to consider requests to issue, procure or
participate in surety bonds, each include provisions that,
upon a change of control, permit each surety to require
the indemnitors to provide cash cover in respect of the
liability assumed by the sureties (and costs and fees of
the sureties) in relation to the Company and the other
indemnitors under the deeds; and
(c) the indenture governing the Company’s high yield notes
originally due 2027, which at the date of this report have
an aggregate nominal amount of approximately $465.0
million, under which if the Company undergoes certain
events defined as constituting a change of control, each
holder of the high yield notes may require the Company to
repurchase all or a portion of its notes at 101% of their
principal amount, plus any accrued and unpaid interest.
Research and Development
The Company did not undertake any research and
development activities during the financial year (2024: nil).
Directors’ report
continued
Directors’ statement of disclosure of information
to auditor
The Directors in office at the date of the approval of this
Directors’ report have each confirmed that, so far as they are
aware, there is no relevant audit information (as defined by
Section 418 of the Companies Act 2006) of which the
Company’s auditor is unaware, and each of the Directors has
taken all the steps they ought to have taken as a Director to
make themselves aware of any relevant audit information
and to establish that the Company’s auditor is aware of that
information. This confirmation is given and should be
interpreted in accordance with the provisions of Section 418 of
the Companies Act 2006.
Responsibility statements under the DTR
The Directors who held office at the date of the approval of the
Directors’ report confirm that, to the best of their knowledge,
the financial statements, prepared in accordance with
UK-adopted IFRS, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company
and the undertakings included in the consolidation taken as a
whole; and the Directors’ report, Operating review and
Financial review, which together constitute the management
report (for the purposes of DTR 4.1.8R), include a fair review of
the development and performance of the business and the
position of the Company and the undertakings included in the
consolidation taken as a whole, together with a description of
the principal risks and uncertainties that they face.
The Annual Report and Financial Statements, taken as a whole,
are fair, balanced and understandable and provide the
information necessary for shareholders to assess the
Company’s position and performance, business model
and strategy.
Independent auditor
Having reviewed the independence and effectiveness of the
auditor, the Audit Committee has recommended to the Board
that the existing auditor, Deloitte, be reappointed. Deloitte has
expressed its willingness to continue as auditor. An ordinary
resolution to reappoint Deloitte as auditor of the Company and
authorising the Directors to set its remuneration will be proposed
at the forthcoming AGM. Information on the Company’s policy
on audit tendering and rotation is on page 109.
Going concern
The Group’s business activities, together with the factors likely
to affect its future development, performance and position, are
set out in the Strategic report on pages 02 to 88. The financial
position of the Group, its cash flow, liquidity position and
borrowing facilities are described in the financial review on
pages 36 to 41. The Board’s assessment of going concern and
viability for the Group is set out on pages 40 and 41. In addition,
note 27 to the financial statements on page 174 includes: the
Group’s objectives, policies and processes for managing its
capital; its financial risk management objectives; details of its
financial instruments and hedging activities; and its exposures
to credit risk and liquidity risk.
Greenhouse gas (‘GHG’) emissions
EnQuest has reported on all of the emission sources within its
operational control required under the Companies Act 2006
(Strategic Report and Directors’ Report) Regulations 2013 and
The Companies (Directors’ Report) and Limited Liability
Partnerships (Energy and Carbon Report) Regulations 2018.
These sources fall within the EnQuest consolidated financial
statements. EnQuest has used the principles of the GHG Protocol
Corporate Accounting and Reporting Standard (revised edition),
ISO 14064-1 and data gathered to fulfil the requirements under
the ‘Environmental Reporting Guidelines: Including streamlined
energy and carbon reporting guidance March 2019’. The
Streamlined Energy & Carbon Reporting (‘SECR’) report includes
assets which are in the operational control of EnQuest.
Emissions
2025
5
SECR
2024
5
SECR
2018
6
baseline
Total emissions tCO
2
e
2
6,900,362
6,622,087
1,704,893
Scope 1
Total emissions tCO
2
e
1,032,517
996,749
1,617,366
Scope 2
Total emissions tCO
2
e
35,846
71,603
87,526
Scope 1
Extraction emissions tCO
2
e
2
964,971
890,175
1,562,507
Scope 2
Extraction emissions tCO
2
e
2
603
419
1,515
Extraction intensity ratio kgCO
2
e/Boe
2
45.67
46.28
47.54
Scope 1
Terminal (SVT) emissions tCO
2
e
2,3
67,546
106,573
54,859
Scope 2
Terminal (SVT) emissions tCO
2
e
2,3
35,243
71,184
86,011
Terminal (SVT) intensity ratio kgCO
2
e/Boe
3
throughput
2,3,7
3.30
5.03
4.65
Scope 3
Emissions tCO
2
e (All Operations)
5
5,831,999
5,553,735
N/A
Energy Consumption
1
2025 SECR
2024 SECR
Total kWh
4,417,894,541
4,442,944,699
Scope 1
Extraction kWh
3,971,537,095
3,651,965,090
Scope 2
Extraction kWh
1,298,641
925,516
Extraction intensity ratio kWh/Boe
2
187.90
189.84
Scope 1
Terminal (SVT) kWh
2,3
244,374,246
401,045,291
Scope 2
Terminal (SVT) kWh
2,3
200,684,558
389,008,803
Terminal (SVT) intensity ratio kgCO
2
e/Boe
3
throughput
2,3,7
14.30
22.38
UK and Overseas Breakdown
2025 SECR
(operational
control) scope
2024 SECR
(operational
control) scope
Scope 1
UK onshore tCO
2
e
2
UK offshore tCO
2
e
2
Non-UK tCO
2
e
67,551
602,973
361,993
106,578
606,184
283,987
Scope 2
UK onshore tCO
2
e
2
UK offshore tCO
2
e
2
Non-UK tCO
2
e
35,355
0
490.59
71,289
0
314
Scope 3
UK onshore tCO
2
e
2,5
UK offshore tCO
2
e
2,5
Non-UK tCO
2
e
2,5
976
4,230,011
1,601,013
14,170
4,412,646
1,126,920
Scope 1
UK onshore kWh
UK offshore kWh
Non-UK kWh
244,401,405
2,408,693,829
1,562,816,107
401,066,953
2,414,152,936
1,237,790,492
Scope 2
UK onshore kWh
UK offshore kWh
Non-UK kWh
201,317,272
0
665,927
389,515,744
0
418,575
Notes:
1
When it is considered that the portfolio of assets under a company’s operational control has changed significantly, the baseline, which is based on verified scope data,
is recalculated to an appropriate comparative period for which good data is available. As such, the baseline is currently 2018
2 tCO
2
e = tonnes of CO
2
equivalent. kgCO
2
e = kilogrammes of CO
2
equivalent. Boe = barrel of oil equivalent. EnQuest is required to report the aggregate gross (100%)
emissions for those assets over which it has operational control. As such, the extraction intensity ratio is calculated by taking the aggregate gross (100%) reported Scope
1 and 2 kgCO
2
e from those assets divided by the aggregate gross (100%) hydrocarbon production from the same assets. The throughput ratio is calculated by taking the
aggregate gross (100%) reported Scope 1 and 2 kgCO
2
e from SVT divided by the aggregate total throughput at the terminal
3
Note on uncertainty: The uncertainty for total emissions within the verified scope is calculated as 1.94%. SVT emissions in isolation are not within 5% due to the steam and
electricity meters for SVT not having supportable uncertainties
4
Kilo-watt hour (kWh) data is reported on a net calorific value basis throughout
5
EnQuest’s Scope 3 emissions breakdown for 2025 includes Category 5 ‘waste generated in operations’ (467 tCO
2
e), Category 6 ‘business travel’ (6,370tCO
2
e), Category 7
‘commuting emissions’ (367 tCO
2
e) and Category 11 ‘use of sold product’ (5,824,796 tCO
2
e). This is consistent with EnQuest’s Scope 3 emissions breakdown from 2024.
6
2022 was the first year that the PM8/Seligi (Malaysian) asset was included within the verified scope due to availability of supportable metering uncertainty
documentation. The 2018 baseline figures in the tables above are quoted for all assets in the operational control of EnQuest but it is declared for transparency that the
PM8/Seligi asset contribution was not verified for the 2018 baseline
7
Intensity ratios are calculated against Scope 1 and Scope 2 emissions only and, as such, exclude Scope 3 emissions
124–125
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Energy efficiency strategy
EnQuest recognises that industry, alongside other key
stakeholders such as governments, regulators and
consumers, must contribute to reducing the impact on
climate change of carbon-related emissions. The Group is
committed to playing its part in the achievement of national
emission-reduction targets and the drive to net zero. EnQuest
aims to reduce emissions generated through its operations
by utilising a detailed project delivery process. The status of
emission-reduction opportunities and projects is discussed at
regular Emissions Reduction Workshops and reviewed at
Board level via the Sustainability and Risk Committee.
Emission-reduction projects managed through this
established process include compressor re-mapping at the
Greater Kittiwake Area, the commissioning of waste heat
recovery units on Kraken and the delivery of both a flare
purge reduction and a flare passing valve replacement
programme on Magnus. In the longer term, Veri Energy,
EnQuest’s wholly owned subsidiary, is developing cost-
effective and efficient plans to repurpose the terminal site
and connected offshore infrastructure to fulfil its ambition of
creating a new energy and decarbonisation hub at the
Sullom Voe Terminal (‘SVT’).
SECR (operational control) scope
EnQuest has a number of financial interests (for example, joint
ventures and joint investments), as covered in this Annual
Report for which it does not have operational control. In line
with SECR and ISO 14064-1 guidance, only those assets where
EnQuest has operational control greater than 50% are
captured within the SECR reporting boundary. Where EnQuest
has less than 50% operational control of an asset, it is not
included within the SECR reporting boundary. Hence, the SECR
operational control boundary is different to EnQuest’s
financial boundary. In line with SECR guidance, this is
fully disclosed.
ISO-14064 verified scope
EnQuest has voluntarily opted to have emissions reported
within the SECR scope verified to the internationally
recognised ISO 14064-1 standard by a UKAS accredited
verification body. This increases the robustness of the
reported emissions and provides the reader with more
confidence in the stated figures. This goes beyond the
minimum requirements of the SECR guidance.
Further disclosures
The Company has set out disclosures in the Strategic report in
accordance with Section 414C(11) of the Companies Act (2006)
– information required by Schedule 7 to the Accounting
Regulations to be contained in the Directors’ report. These
disclosures and any further disclosure requirements as
required by the Companies Act 2006; Schedule 7 of the Large
and Medium-sized Companies and Groups (Accounts and
Reports) Regulations 2008; The Companies (Miscellaneous
Reporting) Regulations 2018; the FCA’s Listing Rules; and DTR
are found on the following pages of the Company’s Annual
Report and are incorporated into the Directors’ report
by reference.
Disclosure number
Page
Future developments
Acquisitions and disposal
Fair treatment of disabled employees
Anti-slavery disclosure
Corporate governance statement
Gender diversity
Financial risk and financial instruments
Important events subsequent to year end
Branches outside of the UK
Stakeholder engagement
Related party transactions
Dividend waiver
10-17
24-27
60
43
96
61, 102
176
182
180
86
176
124
The Directors’ report was approved by the Board and signed
on its behalf by the Company Secretary on 24 March 2026.
Kate Christ
Company Secretary
Directors’ report
continued
EnQuest PLC Annual Report and Accounts 2025
Statement of Directors’ Responsibilities
for the Group Financial Statements
The Directors are responsible for preparing the Annual Report
and the Group financial statements in accordance with
applicable United Kingdom law and regulations. Company
law requires the Directors to prepare Group financial
statements for each financial year. Under that law,
the Directors are required to prepare Group financial
statements under United Kingdom international accounting
standards (‘IFRS’).
Under Company law, the Directors must not approve the
Group financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the Group
and of the profit or loss of the Group for that period.
In preparing the Group financial statements, International
Accounting Standard 1 (‘IAS’) requires that the Directors:
•
properly select and apply accounting policies;
•
present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
•
provide additional disclosures when compliance with the
specific requirements in IFRS is insufficient to enable users
to understand the impact of particular transactions, other
events and conditions on the Group’s financial position and
financial performance; and
•
make an assessment of the Group’s ability to continue as a
going concern.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and explain
the Group’s transactions and disclose with reasonable
accuracy at any time the financial position of the Group and
enable them to ensure that the Group financial statements
comply with the Companies Act 2006 and Article 4 of the IAS
Regulation. They are also responsible for safeguarding the
assets of the Group and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities.
The Directors are also responsible for preparing the Strategic
Report, Directors’ report, the Directors’ Remuneration Report
and the Corporate governance statement in accordance with
the Companies Act 2006 and applicable regulations,
including the requirements of the Listing Rules and the
Disclosure and Transparency Rules.
Fair, balanced and understandable
In accordance with the principles of the UK Corporate
Governance Code, the Directors are responsible for
establishing arrangements to evaluate whether the
information presented in the Annual Report, taken as a whole,
is fair, balanced and understandable and provides the
information necessary for shareholders to assess the Group’s
position and performance, business model and strategy, and
making a statement to that effect. This statement is set out on
page 104 of the Annual Report.
Financial Statements
Corporate Governance
Strategic Report
126–127
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the Directors’ assessment of the Group’s and parent company’s ability to continue to adopt the going concern
basis of accounting included:
•
assessing the reasonableness of the assumptions used in the cash flow forecasts, in particular commodity prices, production
profiles and cash costs, by comparison to those used in the Group’s impairment tests, as outlined in section 5.1, and obtaining
an understanding of any differences
•
assessing the historical accuracy of forecasts prepared by management across production, operating expenditure and
capital expenditure;
•
considering whether the going concern period considered by the Directors, being 12 months from the date of approval of the
financial statements, is appropriate and takes into consideration the maturity of the Group’s bonds in the 4th quarter of 2027;
•
assessing the financing facilities throughout the going concern period, including repayment terms and financial covenants;
•
considering the levels of cash and covenant headroom throughout the going concern period, including sensitivity analysis
and reverse stress testing;
•
assessing the mathematical accuracy of the forecasts and the going concern model; and
•
assessing the appropriateness of the Group’s and parent company’s going concern related financial statement disclosures.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Group’s and parent company’s ability to continue as a going
concern for a period of at least twelve months from when the financial statements are authorised for issue.
In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add
or draw attention to in relation to the Directors’ statement in the financial statements about whether the Directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections
of this report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due
to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy; the
allocation of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Independent auditor’s report
Report on the audit of the financial statements
1. Opinion
In our opinion :
•
the financial statements of EnQuest PLC (the ‘parent company’) and its subsidiaries (the ‘Group’) give a true and fair view of
the state of the Group’s and of the parent company’s affairs as at 31 December 2025 and of the Group’s profit for the year
then ended;
•
the Group financial statements have been properly prepared in accordance with United Kingdom adopted international
accounting standards;
•
the parent company financial statements have been properly prepared in accordance with United Kingdom Generally
Accepted Accounting Practice, including Financial Reporting Standard 101
Reduced Disclosure Framework
; and
•
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
•
the Group Income Statement;
•
the Group Balance Sheet;
•
the Group Statement of Changes in Equity;
•
the Group Statement of Cash Flows;
•
the related notes 1 to 31 to the Group financial statements;
•
the parent company Balance Sheet;
•
the parent company Statement of Changes in Equity; and
•
the related notes 1 to 13 to the parent company financial statements
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law
and United Kingdom adopted international accounting standards. The financial reporting framework that has been applied in
the preparation of the parent company financial statements is applicable law and United Kingdom Accounting Standards,
including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial
statements section of our report.
We are independent of the Group and the parent company in accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to
listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The
non-audit services provided to the Group and parent company for the year are disclosed in note 4(f) to the financial statements.
We confirm that we have not provided any non-audit services prohibited by the FRC’s Ethical Standard to the Group or the
parent company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3. Summary of our audit approach
Key audit matters
The key audit matters that we identified in the current year were:
•
Valuation of oil and gas related assets and liabilities
• Valuation of decommissioning liability
Within this report, key audit matters are identified as follows:
Newly identified
Increased level of risk
Similar level of risk
Decreased level of risk
Materiality
The materiality that we used for the Group financial statements was $16.8m which was determined on
the basis of 3.3% of adjusted EBITDA (the Group have presented a reconciliation of profit from operations
before tax and finance costs to adjusted EBITDA in the glossary to the financial statements on page 192).
Scoping
EnQuest PLC has three components, being the North Sea, Malaysia and Vietnam. They account for 100% of
the Group’s revenue, 100% of its adjusted EBITDA and 100% of its net assets, therefore account balances of
all components were scoped in.
Significant changes in
our approach
During the current year, our Group audit scope was expanded to include the newly acquired Vietnam
business as a material component, with the results of this component subject to a full scope audit by a
component team based in Vietnam.
128–129
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
5.1. Valuation of oil and gas related assets and liabilities
continued
How the scope of our
audit responded to
the key audit matter
Our procedures comprised the following:
Procedures on internal controls, valuation models and disclosures
•
obtaining an understanding of relevant controls over management’s process for identifying indicators
of impairment and for performing their impairment assessment and related valuations;
•
assessing management’s forecasting accuracy through a retrospective review of previous forecasts;
•
assessing whether forecast cash flows were consistent with board approved forecasts and budgets,
and forecasts used elsewhere, including for going concern and viability purposes;
•
assessing, with input from our tax specialists, whether the models appropriately incorporate tax cash
flows;
•
working with our modelling specialists to evaluate the arithmetical accuracy of the models;
•
challenging management’s determination of oil and gas cash generating units for impairment
purposes, in comparison to the requirements of IAS 36;
•
assessing the reasonableness of the various valuations on an aggregate basis, as part of our stand-
back procedures;
•
evaluating compliance with the relevant accounting standards, including IAS 12
Income Taxes
,
IAS 36
Impairment of Assets
and IFRS 13
Fair Value Measurements
; and
•
evaluating the adequacy of management’s disclosures in relation to impairment and related
valuations, including related sensitivity analyses and climate-related disclosures.
Procedures related to the key assumptions used for valuation purposes
Our procedures related to the key assumptions in this key audit matter are:
Forecast commodity prices
•
assessing the appropriateness of management’s forecast commodity prices, through benchmarking
against forward curves, peer information, market data and climate aligned price scenarios;
•
performing sensitivity analysis on the pricing assumptions to determine the impact on the valuation
conclusions of reasonably possible changes;
•
evaluating whether management’s pricing assumptions have adequately considered the impact of
the risk of lower oil and gas demand due to climate change; and
•
assessing future commodity price differentials applied relative to observed differentials experienced
from liftings from 2025.
Discount rate
•
evaluating, with input from our valuations specialists, the Group’s discount rates used in impairment
tests and valuations;
•
comparing to discount rates of peer UK Continental Shelf upstream companies; and
•
assessing whether country risks are appropriately reflected in the Group’s discount rates.
Reserves estimates and production profiles
•
comparing management’s reserves estimates and production profiles to those of their independent
reserves expert;
•
assessing the technical competence, capabilities and objectivity of management’s internal and
external experts;
•
evaluating, with involvement from our oil and gas reserves specialist, the reasonableness of reserves
estimates and production profiles; and
•
working with our oil and gas reserves specialist to challenge management on significant changes in
the reserves estimates and production profiles.
Magnus contingent consideration valuation
Our audit procedures to challenge management’s judgment that the year end fair value was equal to
the post-year-end settlement price included:
•
obtaining and evaluating evidence of the status of negotiations with bp plc as at 31 December 2025,
including reading the latest draft of the settlement agreement at that date and related
correspondence with bp plc;
•
understanding the extent and significance of changes made to the draft settlement agreement
subsequent to year end, based on discussions with the Directors and a comparison to the terms in the
final agreement;
•
assessing whether the significant difference between the settlement price and previous cash flow
forecasts for the Magnus oil and gas asset has any impact on the reliability of the cash flow forecasts
used in the impairment test for this asset.
Independent auditor’s report
continued
5.1. Valuation of oil and gas related assets and liabilities
Key audit matter
description
The Group is required to assess the carrying value of oil and gas related assets and liabilities, in line with
the relevant accounting standard, at each balance sheet date. In order to appropriately value these
assets and liabilities, management is required to forecast future cash flows. These forecast cash flows
are used consistently across the:
•
Impairment assessment of oil and gas assets;
• Impairment assessment of goodwill;
•
Impairment assessment of the parent company investments; and
• Valuation of the deferred tax asset.
The forecast future cash flows contain a high level of management judgement and estimation,
particularly in relation to the following significant assumptions:
• Forecast commodity prices;
• Discount rate applied; and
•
Reserve estimates and production profiles.
Commodity prices, reserve estimates and production profiles are also impacted by climate-related risks,
which increases the level of estimation uncertainty.
Given the level of management judgement and estimation applied in determining the recoverable value
of the oil and gas related assets and liabilities, including estimation uncertainty within the significant
assumptions outlined above, we consider this to be a key audit matter related to the potential risk of
fraud. Our work in this area in respect of the Group was focused on the oil and gas related assets in the
North Sea, as these represent 90% of the Group’s property, plant and equipment and goodwill.
Impairment assessment of oil and gas assets, goodwill and parent company investments
The Group has performed an impairment assessment for oil and gas assets and goodwill carrying value,
by reference to IAS 36
Impairment of Assets
. As at 31 December 2025, the net book value of property, plant
and equipment, which primarily relates to oil and gas assets, was $2,370 million (2024: $2,298 million) and
the Group has recorded a pre-tax impairment reversal of $6 million (2024: impairment charge of $71
million) against certain oil and gas assets, including related right of use assets, as disclosed in note 9.
As at 31 December 2025, the net book value of goodwill was $140 million (2024: $134 million) with the
increase in the year relating to the acquisition of Block 12W in Vietnam, as disclosed in note 10. No goodwill
impairment charge has been recorded in 2025 (2024: nil).
The Group has also performed an assessment of the carrying value of the parent company’s investment
in subsidiaries by reference to IAS 36
Impairment of Assets
and IFRS 9
Financial Instruments
. As at
31 December 2025, the net book value of investments recognised in the parent company balance sheet
was $374 million (2024: $372 million) and an impairment reversal of $2 million (2024: $71 million) has been
recorded, as disclosed in note 3 of the parent company financial statements.
In 2025, revisions were made to the key assumptions used in impairment tests for oil and gas assets.
These revisions included updated oil and gas price assumptions and a change in the Group’s post-tax
discount rate for these assets from 10% to 9% compared to the prior year. Further details of these
assumptions are set out in Note 2.
Valuation of Magnus contingent consideration
The Magnus contingent consideration was valued at $60 million as at 31 December 2025 (2024: $451
million), resulting in a pre-tax gain of $391 million being recognised. In previous years the valuation was
based on the estimated future cash flows of the Magnus oil and gas asset. In the current year the
valuation was based on the price agreed with bp plc of $60 million to settle this profit share arrangement,
in line with IFRS 13
Fair Value Measurements
. As this agreement was not finalised until February 2026,
judgement was applied by the Directors in concluding that all key terms of the settlement agreement
had been finalised with bp prior to year end and hence that the settlement price represented the fair
value of the arrangement as of 31 December 2025. Further details of this judgement are provided in note
2 and note 21.
Valuation of the deferred tax asset
As at 31 December 2025, a deferred tax asset of $271 million (2024: $506 million) was recognised, in line
with IAS 12
Income Taxes
, and based on expected utilisation of both historical tax losses, underpinned by
forecasts of future profits, and other temporary differences including that relating to the Magnus
contingent consideration arrangement outlined above. The forecast cash flows used to value the
deferred tax asset are consistent with the cash flows used for impairment purposes. Further details of the
deferred tax asset are disclosed in note 6(c).
Given the interrelated nature of the key areas noted above, management have applied consistent
assumptions across all of these valuations where appropriate.
Further details on this matter have been disclosed in the audit committee report on page 103 to 108 and
in the “critical accounting judgements and key sources of estimation uncertainty” section of note 2.
130–131
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
5.2. Valuation of decommissioning liability
continued
How the scope of our
audit responded to
the key audit matter
Our procedures comprised the following:
Procedures on internal controls, the decommissioning model and disclosures
•
obtaining an understanding of the relevant controls relating to the decommissioning provision;
•
assessing the technical competence, capabilities and objectivity of management’s internal and
external experts;
•
assessing the decommissioning provision for compliance with IAS 37
Provisions, Contingent Liabilities
and Contingent Assets
;
•
working with our modelling specialists to evaluate the arithmetical accuracy of the decommissioning
model;
•
assessing available benchmarking reports for indications of developments in industry practice and
prevailing cost trends;
•
challenging the cost reduction factors applied to the decommissioning model, through comparison
with available evidence for the factors applied including industry benchmarking reports;
•
testing a sample of actual decommissioning spend incurred during the period, by agreeing to invoices
and payments from bank statements;
•
assessing the historical forecasting accuracy of management for decommissioning expenditure, by
comparing actual spend with historical estimates;
•
re-calculating the closing decommissioning provision from the gross decommissioning cost estimate,
and agreeing this to the Group’s financial records; and
•
evaluating the adequacy of the Group’s disclosures, including the key sources of estimation
uncertainty and associated sensitivity analysis of decommissioning assumptions.
Procedures on cost estimates and related assumptions
Internal well cost estimates
•
challenging the Group’s assumptions within the cost estimate by comparing to available third-party
data and benchmarking to industry publications, peer and market rates; and
•
assessing the assumed durations for plug and abandonment of wells, by comparison to available
benchmarking data and potential contradictory evidence available from active decommissioning
projects or other operator estimates.
Estimates for non-operated oil and gas assets
•
comparing management’s estimates for non-operated assets to those of the most recent operator
estimate; and
•
to the extent management’s estimates are significantly different, understanding the basis for this
difference and the evidence available to either corroborate or contradict management’s estimate,
including comparison to industry publications, market data and evidence available from active
decommissioning projects.
Discount rate
•
evaluating the Group’s discount rates used in valuing the decommissioning liability with reference to
external risk free market rates; and
•
recalculating the discount rate by agreeing key inputs, being the year-end 5, 10- and 20-year UK
Gilt rates and expected timing profile of future decommissioning spend, to supporting evidence
and confirming the calculations are applied in accordance with the method and are
mathematically accurate.
Key observations
We are satisfied that the Group’s decommissioning provision is reasonable and prepared in accordance
with the requirements of IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
In reaching this conclusion we observed that:
•
The key assumptions within the well cost estimates for operated oil and gas assets are reasonable;
•
The estimates used for non-operated oil and gas assets are not materially misstated; and
• The decommissioning discount rate is reasonable.
We are also satisfied the disclosures in the financial statements are appropriate.
Independent auditor’s report
continued
5.1. Valuation of oil and gas related assets and liabilities
continued
Key observations
We are satisfied with the Group’s conclusions in respect of the valuation of oil and gas related assets and
liabilities, including the reversal of impairment and the fair value gain recognised in respect of the
Magnus consideration arrangement.
In reaching this conclusion, we observed that:
•
Future commodity price assumptions are within our acceptable range for all years;
•
Impairment discount rates are within the independent range calculated by our valuations specialist;
•
Reserves estimates and production profiles were concluded as reasonable, based on estimates from
management’s reserves expert;
•
The carrying value of the investment in subsidiaries, including the related impairment reversal,
is reasonable;
•
The carrying value of the Magnus contingent consideration is within a reasonable range; and
•
The deferred tax asset recognition is appropriate and the carrying value is a reasonable estimate.
We are also satisfied that the disclosures in the financial statements are appropriate.
5.2. Valuation of decommissioning liability
Key audit matter
description
The Group is required by law to decommission the oil and gas assets and associated infrastructure at the
end of their operating life. An estimate of the future cost of decommissioning is required to be provided
for in accordance with IAS 37
‘Provisions, Contingent Liabilities and Contingent Assets’
.
The decommissioning provision at 31 December 2025 is $931 million (2024: $760 million). The provision
represents the present value of decommissioning costs which are expected to be incurred during the
decommissioning period, which is assumed to run to 2050, assuming no further development of the
Group’s assets. Further details on the key sources of estimation uncertainty underpinning the valuation of
decommissioning provisions can be found in Note 2. We consider this to be a key audit matter related to
the potential risk of fraud.
Decommissioning liabilities are inherently judgemental areas, particularly in relation to cost estimates
and the related assumptions. The key management estimates containing the most estimation
uncertainty, and therefore the focus of our key audit matter, are:
•
internal well cost estimates included in the decommissioning model in respect of oil and gas assets
operated by the Group;
•
the extent to which management’s estimates for non-operated oil and gas assets should be aligned
with the latest estimates provided by the operator; and
•
discount rate applied, calculated as a risk-free rate using an average of year-end 5-, 10- and 20-year
UK Gilts, weighted to reflect the expected timing profile of future decommissioning spend.
The Group maintained the discount rate used in calculating its decommissioning provisions at 4.5% as at
31 December 2025.
In deriving its cost estimates the Group used internal and external experts, including its own in-house
engineering team as well as, for certain elements of the cost estimate, an external engineering firm.
Further details on this matter have been disclosed in the audit committee report on page 103 to 108 and
in note 22.
132–133
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
7. An overview of the scope of our audit
7.1. Identification and scoping of components
Our audit was scoped by obtaining an understanding of the Group and its environment, including Group-wide controls, and
assessing the risks of material misstatement at the Group level. In the current year, we performed an audit of one or more
account balances of the North Sea, Malaysia and Vietnam components. The Group audit team conducted audit procedures for
the North Sea component, whilst the Malaysia and Vietnam components were audited by their respective component teams
with oversight from the Group audit team.
The performance materiality applied for the Malaysia component was $5.9 million (2024: $7.1 million). The performance
materiality applied for the Vietnam component was $5.9m million (2024: not applicable). The performance materiality applied
for the North Sea component was $10.6 million (2024: $12.8 million).
The North Sea, Malaysia and Vietnam components, where we performed an audit of one or more account balances, accounted
for 100% of the Group’s revenue, 100% of the Group’s adjusted EBITDA and 100% of the Group’s net assets, consistent with the
prior year.
7.2. Our consideration of the control environment
We obtained an understanding of relevant controls in relation to a number of key business cycles, including impairment,
decommissioning, financial reporting and close, and revenue, as well as IT systems that were relevant to the audit, being the
financial reporting system. Additionally, we tested relevant controls relating to revenue cut-off. Progress continues to be made in
addressing the control weaknesses that were identified in relation to the general IT control environment in the prior year, but we
did not place reliance on these IT controls for the purposes of our audit testing. Overall, we did not plan to take a control reliance
approach in the current year, other than in respect of revenue as outlined above.
7.3. Our consideration of climate-related risks
We performed enquiries of management to understand the impact of climate-related risks and controls relevant to the Group.
We performed a review of the climate change risk assessment and related documentation prepared by management and
considered the completeness and accuracy of the climate-related risks identified and summarised in the Task Force on
Climate-related Financial Disclosures report from page 76 to 85.
As disclosed in note 2, management identified key judgements and estimates with elevated climate-related risk, relating to
property, plant and equipment and goodwill and deferred tax as well as the timing (and hence valuation) of the
decommissioning provision.
We considered whether the risks identified by management within their climate change risk assessment and related
documentation are complete and challenged assumptions impacting the financial statements. The key piece of climate-
related regulation enacted to date and impacting the Group continues to relate to carbon costs and emission allowances. The
key market-related matter which could have a material impact on the valuation of the items noted above is in respect of future
demand for, and pricing of, oil and gas as the energy mix evolves in response to climate change risk and other matters. There
continues to be a climate-related risk relating to the early cessation of production of oil and gas assets, which would impact all
of the judgements and estimates outlined above. This is disclosed in the annual report on page 65.
We performed a review of the climate disclosures within the Annual Report, including the climate-related financial disclosures
referred to in note 2, with the involvement of our climate specialists. We considered whether these were materially consistent
with the financial disclosures and consistent with our understanding of the climate-related risks, assumptions and judgements
during the year. Both of our key audit matters are considered to contain climate-related risks, being the risks to commodity
prices and cessation of production, which could have a material impact on the valuation of oil and gas related assets and
liabilities and valuation of the decommissioning provision. The procedures performed for these key audit matters are discussed
in detail in the key audit matters section above.
7.4. Working with other auditors
We engaged Deloitte Malaysia and Deloitte Vietnam as our component auditors, directed and supervised by the
Group engagement team in the UK. Detailed referral instructions were sent to the component audit team as part of
planning procedures.
The Group engagement team directed and supervised the component teams throughout the year via attendance at planning
meetings, regular communication between the teams and attendance at closing meetings. The Group engagement team
reviewed and challenged the reporting deliverables and audit file as part of concluding procedures.
We are satisfied that the level of involvement of the lead audit partner and team in the component audit has been appropriate
and has enabled us to conclude that sufficient appropriate audit evidence has been obtained in support of our opinion on the
Group financial statements as a whole.
Independent auditor’s report
continued
6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic
decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the
scope of our audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group financial statements
Parent company financial statements
Materiality
$16.8 million (2024: $20.3 million)
$10.6 million (2024: $16.8 million)
Basis for determining
materiality
3.3% of adjusted EBITDA (2024: 3% of adjusted
EBITDA). The directors have presented a
reconciliation of profit from operations before tax
and finance costs to adjusted EBITDA in the glossary
to the financial statements on page 192.
1.9% of net assets (2024: 2.9% of net assets)
Rationale for the
benchmark applied
Adjusted EBITDA was considered to be the most
relevant benchmark as it is a key performance
measure used by the Group and by investors. It
represents a consistent profit measure used widely
by stakeholders.
The parent company acts primarily as a holding
company and therefore net assets is the most
appropriate benchmark to use.
Adjusted EBITDA
$504m
Group materiality
Component performance materiality range
$5.9m to $10.6m
Audit Committee reporting threshold $0.84m
Group materiality $16.8m
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the financial statements as a whole.
Group financial statements
Parent company financial statements
Performance
materiality
70% (2024: 70%) of Group materiality
70% (2024: 70%) of parent company materiality
Basis and rationale
for determining
performance
materiality
In determining performance materiality, we considered the following factors:
•
our risk assessment, including our assessment of the Group’s overall control environment and whether
we are able to rely on controls;
•
our past experience of the audit, which has indicated a low number of corrected and uncorrected
misstatements identified in prior periods;
•
management’s willingness to correct errors identified in the prior year and current year; and
•
macro-economic factors such as commodity price volatility and geo-political instability.
6.3. Error reporting threshold
We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of $0.84 million
(2024: $1.02 million), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds.
We also report to the Audit Committee on disclosure matters that we identified when assessing the overall presentation of
the financial statements.
134–135
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
11.Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including fraud is detailed below.
11.1. Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with
laws and regulations, we considered the following:
•
the nature of the industry and sector, control environment and business performance including the design of the Group’s
remuneration policies, key drivers for Directors’ remuneration, bonus levels and performance targets;
•
the Group’s own assessment of the risks that irregularities may occur either as a result of fraud or error that was approved by
the board;
•
results of our enquiries of management, internal audit, the Directors and the Audit Committee about their own identification
and assessment of the risks of irregularities, including those that are specific to the Group’s sector;
•
any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures
relating to:
–
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of
non-compliance;
–
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged
fraud; and
–
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
•
the matters discussed among the audit engagement team including the component audit teams and relevant internal
specialists, including tax, valuations, IT, modelling and oil and gas reserves specialists, regarding how and where fraud might
occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud
and identified the greatest potential for fraud in the following areas:
•
valuation of oil and gas related assets and liabilities;
•
valuation of decommissioning liability; and
•
Vietnam revenue recognition.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of
management override.
We also obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on provisions of
those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial
statements. The key laws and regulations we considered in this context included the UK Companies Act 2006 and the Listing
Rules of the UK Listing Authority and the relevant tax compliance regulations in the jurisdictions in which the Group operates.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements
but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included
environmental laws and regulations in the countries in which the Group operates as well as licence terms for the Group’s oil and
gas assets.
Independent auditor’s report
continued
8. Other information
The other information comprises the information included in the annual report, other than the financial statements and our
auditor’s report thereon. The Directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly
stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be
materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this
gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of Directors
As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and the parent company’s ability
to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis
of accounting unless the Directors either intend to liquidate the Group or the parent company or to cease operations, or have no
realistic alternative but to do so.
10.Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
136–137
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
14. Matters on which we are required to report by exception
14.1. Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if, in our opinion:
•
we have not received all the information and explanations we require for our audit; or
•
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been
received from branches not visited by us; or
•
the parent company financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of Directors’ remuneration
have not been made or the part of the Directors’ remuneration report to be audited is not in agreement with the accounting
records and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address
15.1. Auditor tenure
Following the recommendation of the audit committee, we were appointed by shareholders on 21 May 2020 to audit the
financial statements for the year ending 31 December 2020 and subsequent financial periods. The period of total uninterrupted
engagement including previous renewals and reappointments of the firm is six years, covering the years ending 31 December
2020 to 31 December 2025.
15.2. Consistency of the audit report with the additional report to the audit committee
Our audit opinion is consistent with the additional report to the audit committee we are required to provide in accordance with
ISAs (UK).
16. Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or
for the opinions we have formed.
As required by the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R, these
financial statements will form part of the Electronic Format Annual Financial Report filed on the National Storage Mechanism of
the FCA in accordance with DTR 4.1.15R – DTR 4.1.18R. This auditor’s report provides no assurance over whether the Electronic
Format Annual Financial Report has been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R.
David Paterson ACA (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
24 March 2026
Independent auditor’s report
continued
11.2. Audit response to risks identified
As a result of performing the above, we identified the valuation of oil and gas related assets and liabilities and the valuation of
the decommissioning provision as key audit matters related to the potential risk of fraud. The key audit matters section of our
report explains the matters in more detail and also describes the specific procedures we performed in response to those key
audit matters.
In addition to the above, our procedures to respond to risks identified included the following:
•
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions
of relevant laws and regulations described as having a direct effect on the financial statements;
•
enquiring of management, the Audit Committee and in-house legal counsel concerning actual and potential litigation
and claims;
•
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
•
reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing
correspondence with relevant authorities;
•
in addressing the risk of fraud in Vietnam’s revenue recognition, we tested the crude oil transactions during the year by
sampling from the sales transactional listing and agreeing to supporting documentation; and
•
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and
other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential
bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course
of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members
including internal specialists and component audit teams, and remained alert to any indications of fraud or non-compliance
with laws and regulations throughout the audit.
Report on other legal and regulatory requirements
12. Opinions on other matters prescribed by the Companies Act 2006
In our opinion the part of the Directors’ remuneration report to be audited has been properly prepared in accordance with
the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
•
the information given in the strategic report and the Directors’ report for the financial year for which the financial
statements are prepared is consistent with the financial statements; and
•
the strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent company and their environment obtained in the
course of the audit, we have not identified any material misstatements in the strategic report or the Directors’ report.
13. Corporate Governance Statement
The Listing Rules require us to review the Directors’ statement in relation to going concern, longer-term viability and that part of
the Corporate Governance Statement relating to the Group’s compliance with the provisions of the UK Corporate Governance
Code specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements and our knowledge obtained during the audit:
•
the Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any
material uncertainties identified set out on page 40;
•
the Directors’ explanation as to its assessment of the Group’s prospects, the period this assessment covers and why the
period is appropriate set out on page 41;
•
the Directors’ statement on fair, balanced and understandable set out on page 104;
•
the board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on pages
62 to 74;
•
the section of the annual report that describes the review of effectiveness of risk management and internal control systems
set out on page 108; and
•
the section describing the work of the audit committee set out on pages 103 to 109.
138–139
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Financial Statements
Group Income Statement
For the year ended 31 December 2025
Financial Statements
Group Balance Sheet
At 31 December 2025
Notes
2025
$’000
2024
$’000
Revenue and other operating income
4(a)
Cost of sales
4(b)
(837,540 )
(787,383 )
Gross profit/(loss)
Net impairment reversal/(charge) to oil and gas assets
9
(71,414 )
General and administration expenses
4(c)
(7,482 )
(5,702 )
Other income/(expenses)
4(d)
(4,682 )
Profit/(loss) from operations before tax and finance income/(costs)
Finance costs
5
(164,591 )
(159,422 )
Finance income
5
Profit/(loss) before tax
Income tax
(i)
6
(491,865 )
(72,841 )
Profit/(loss) for the year attributable to owners of the parent
13
Total comprehensive profit/(loss) for the year, attributable to owners of the parent
There is no comprehensive income attributable to the shareholders of the Group other than the profit/(loss) for the period.
Revenue and operating profit/(loss) are all derived from continuing operations.
Notes
$
$
Earnings per share
7
Basic
Diluted
The attached notes 1 to 31 form part of these Group financial statements.
(i)
Inclusive of a deferred tax charge of $374.7 million (2024: $60.7 million) which includes a one-off non-cash impact of $123.9 million from the two-year extension to the
UK Energy Profits Levy enacted in March 2025 (2024: $42.2 million from the change in Energy Profits Levy tax rate to 38% and removal of investment allowances)
Notes
2025
$’000
2024
$’000
ASSETS
Non‑current assets
Property, plant and equipment
9
Goodwill
10
Intangible assets
11
Deferred tax assets
6(c)
Other receivables
15
Other financial assets
18
Current assets
Intangible assets
11
Inventories
12
Trade and other receivables
15
Current tax receivable
Cash and cash equivalents
13
Other financial assets
18
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity
Share capital and premium
19
Treasury shares
19
(3,540 )
(4,425 )
Share-based payments reserve
19
Capital redemption reserve
19
Retained earnings
19
TOTAL EQUITY
Non‑current liabilities
Loans and borrowings
17
Lease liabilities
23
Contingent consideration
21
Provisions
(i)
22
Deferred income
24
Deferred tax liabilities
6(c)
Current liabilities
Loans and borrowings
17
Lease liabilities
23
Contingent consideration
21
Provisions
(i)
22
Trade and other payables
16
Other financial liabilities
18
Current tax payable
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
(i)
Decommissioning provision includes EnQuest’s share of the total Block 12W decommissioning liability, noting $92.1 million has been pre-funded through an
abandonment fund held in Vietnam which is disclosed within non-current other receivables
The financial statements were approved by the Board of Directors and authorised for issue on 24 March 2026 and signed on its
behalf by:
Jonathan Copus
140–141
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Financial Statements
Group Statement of Changes in Equity
For the year ended 31 December 2025
Notes
2025
$’000
2024
$’000
CASH FLOW FROM OPERATING ACTIVITIES
Cash generated from operations
29
Cash received/(paid) on sale/(purchase) of financial instruments
(10,306 )
Net cash received for trading of other intangible assets
Cash paid for purchase of other intangible assets
(6,472 )
(1,138 )
Cash paid in relation to amounts previously provided for
(481 )
(9,063 )
Decommissioning spend
(56,810 )
(60,544 )
Income taxes paid
(107,235 )
(97,264 )
Net cash flows from/(used in) operating activities
INVESTING ACTIVITIES
Purchase of property, plant and equipment
(175,025 )
(249,165 )
Proceeds from farm-down
Vendor financing facility repaid
18(f), 24
Purchase of intangible oil and gas assets
11
(4,225 )
(3,686 )
Payment of Magnus contingent consideration – Profit share
21
(48,465 )
Acquisition
30
(20,278 )
Interest received
Net cash flows (used in)/from investing activities
(194,242 )
(182,435 )
FINANCING ACTIVITIES
Proceeds from loans and borrowings
Repayment of loans and borrowings
(146,451 )
(162,304 )
Payment for repurchase of shares
(9,018 )
Payment of obligations under financing leases
23
(83,061 )
(130,065 )
Dividend paid
8
(15,300 )
Interest paid
(96,997 )
(83,162 )
Other finance expenses paid
(3,606 )
Net cash flows (used in)/from financing activities
(192,983 )
(352,887 )
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
(24,500 )
(27,691 )
Net foreign exchange on cash and cash equivalents
(5,642 )
Cash and cash equivalents at 1 January
CASH AND CASH EQUIVALENTS AT 31 DECEMBER
Reconciliation of cash and cash equivalents
Total cash at bank and in hand
13
Restricted cash
13
Cash and cash equivalents per balance sheet
The attached notes 1 to 31 form part of these Group financial statements.
Notes
Share
capital
$’000
Share
premium
$’000
Treasury
shares
$’000
Share-
based
payments
reserve
$’000
Capital
redemption
reserve
$’000
Retained
earnings
$’000
Total
$’000
Balance at 1 January 2024
Profit for the year
Total comprehensive income for the year
Issue of shares to Employee Benefit Trust
(229 )
Repurchase and cancellation of shares
(2,006 )
(4,425 )
(4,593 )
(9,018 )
Share-based payment
Balance at 31 December 2024
(4,425 )
Profit for the year
Total comprehensive income for the year
Transfer of shares to Employee Benefit
Trust
19
(885 )
Share-based payment
20
(669 )
(669 )
Dividend paid
(15,300 )
(15,300 )
Balance at 31 December 2025
(3,540 )
The attached notes 1 to 31 form part of these Group financial statements.
Financial Statements
Group Statement of Cash Flows
For the year ended 31 December 2025
142–143
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Financial Statements
Notes to the Group Financial Statements
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
144–145
2. Basis of preparation continued
Companies Act and is registered in England and Wales and listed on the London Stock Exchange. The address of the Company’s
registered office is shown on the inside back cover of the Group Annual Report and Accounts.
are to responsibly optimise production, leverage existing infrastructure, deliver a strong decommissioning performance and
The Group’s financial statements for the year ended 31 December 2025 were authorised for issue in accordance with a resolution
of the Board of Directors on 24 March 2026.
The consolidated financial statements have been prepared in accordance with United Kingdom international accounting
standards (‘IFRS’) in conformity with the requirements of the Companies Act 2006. The accounting policies which follow set out
those policies which apply in preparing the financial statements for the year ended 31 December 2025.
The Group continues to present various Alternative Performance Measures (‘APMs’) when assessing and discussing the Group’s
financial performance, balance sheet and cash flows that are not defined or specified under IFRS but consistent with the
measurement basis applied to the financial statements. The Group uses these APMs, which are not considered to be a substitute
for, or superior to, IFRS measures, to provide stakeholders with additional useful information to aid the understanding of the
Group’s underlying financial performance, balance sheet and cash flows by adjusting for certain items which impact upon IFRS
measures or, by defining new measures. See the Glossary – Non-GAAP Measures on page 192 for more information.
The Group financial information has been prepared on a historical cost basis, except for the fair value remeasurement of certain
financial instruments, including derivatives and contingent consideration, as set out in the accounting policies. The presentation
currency of the Group financial information is US Dollars (‘$’) and all values in the Group financial information are rounded to the
nearest thousand ($’000) except where otherwise stated.
The financial statements have been prepared on the going concern basis.
During 2025, EnQuest has continued to focus on optimisation of its capital structure and the maximisation of its available
transactional capacity.
In November, EnQuest signed a new six-year senior secured reserve-based lending facility which replaced the previous RBL,
providing the Group with an enhanced capital structure that is simple, flexible and aligned with its growth ambitions. Details of
the amended facility are provided in note 17. In February 2026, the Group made final settlement for the Magnus profit share
contingent consideration, securing 100% of future Magnus cash flows while maintaining its limited exposure to future
decommissioning expenditure at the asset. This credit-enhancing settlement, simplifies the Group’s balance sheet, unlocks the
full upside of one of EnQuest’s core assets, and further secures longer term capacity under its RBL.
EnQuest closely monitors and manages its funding position and liquidity requirements throughout the year, including forecast
covenant results. Cash forecasts are regularly produced and discussed, with sensitivities considered for, but not limited to,
changes in crude oil prices (adjusted for hedging undertaken by the Group), production rates and costs. These forecasts and
sensitivity analyses allow management to mitigate liquidity or covenant compliance risks in a timely manner. Management
have considered the impact of the situation in the Middle East, particularly on future oil prices. Reflecting the uncertainty as to
how long the conflict and the period of elevated oil prices will last, management have assumed in the Base Case that the
average oil price for the going concern period will be $70.0/bbl. Although this is slightly higher than that used in its impairment
assessment (see note 2) to reflect post year-end pricing trends, it is considerably below current spot prices.
The Group’s latest approved budget and long term plan underpins management’s base case (‘Base Case’), upon which a
reverse stress test has been performed. This indicates that an oil price of c.$45.0/bbl is required to maintain covenant
compliance over the going concern period. The low level of this required price reflects the Group’s strong liquidity position.
The Base Case has also been subjected to further testing through a scenario that explores the impact of the following plausible
downside risks (the ‘Downside Case’):
•
10% discount to Base Case prices resulting in Downside Case prices of $63.0/bbl for 2026 and 2027;
•
Production risking of 5.0%; and
•
2.5% increase in operating costs.
The Base Case and Downside Case indicate that the Group is able to operate as a going concern and remain covenant
compliant for 12 months from the date of publication of its full-year results (the ‘going concern period’).
After making appropriate enquiries and assessing the progress against the forecast, the Directors have a reasonable
expectation that the Group will continue in operation and meet its commitments as they fall due over the going concern period.
New standards and interpretations
The following new standards became applicable for the current reporting period. No material impact was recognised
upon application:
•
Lack of Exchangeability (Amendments to IAS 21)
Standards issued but not yet effective
At the date of authorisation of these financial statements, the Group has not applied the following new and revised IFRS
Standards that have been issued but are not yet effective:
IFRS 9 and IFRS 7 | Amendments to the Classification and Measurement of Financial Instruments |
IFRS 18 | Presentation and disclosure in Financial Statements |
IFRS 19 | Subsidiaries without Public Accountability: Disclosures |
Other than IFRS 18, the Directors do not expect that the adoption of the Standards listed above will have a material impact on the
financial statements of the Group in future periods. The Directors noted IFRS 18 may change the presentation and disclosure
information in the financial statements when effective, which is for periods commencing on or after 1 January 2027.
The consolidated financial statements incorporate the financial statements of EnQuest PLC and entities controlled by the
Company (its subsidiaries) made up to 31 December each year. Control is achieved when the Company:
•
has power over the investee;
•
is exposed, or has rights, to variable returns from its involvement with the investee; and
•
has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to
one or more of the three elements of control listed above. Consolidation of a subsidiary begins when the Company obtains
control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, the results of subsidiaries
acquired or disposed of during the year are included in profit or loss from the date the Company gains control until the date the
Company ceases to control the subsidiary.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into
line with the Group’s accounting policies. All intra-Group assets and liabilities, equity, income, expenses and cash flows relating
Oil and gas operations are usually conducted by the Group as co-licensees in unincorporated joint operations with other
companies. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions
about the relevant activities require the consent of the relevant parties sharing control. The joint operating agreement is the
underlying contractual framework to the joint arrangement, which is historically referred to as the joint venture. The Annual
Report and Accounts therefore refers to ‘joint ventures’ as a standard term used in the oil and gas industry, which is used
interchangeably with joint operations.
Most of the Group’s activities are conducted through joint operations, whereby the parties that have joint control of the
arrangement have the rights to the assets, and obligations for the liabilities relating to the arrangement. The Group recognises
its share of assets, liabilities, income and expenses of the joint operation in the consolidated financial statements on a line-by-
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (‘functional currency’). The Group’s financial statements are presented in US
Dollars, the currency which the Group has elected to use as its presentation currency.
In the financial statements of the Company and its individual subsidiaries, transactions in currencies other than a company’s
functional currency are recorded at the prevailing rate of exchange on the date of the transaction. At the year end, monetary
assets and liabilities denominated in foreign currencies are retranslated at the rates of exchange prevailing at the balance
sheet date. Non-monetary assets and liabilities that are measured at historical cost in a foreign currency are translated using
the rate of exchange at the dates of the initial transactions. Non-monetary assets and liabilities measured at fair value in a
foreign currency are translated using the rate of exchange at the date the fair value was determined. All foreign exchange gains
The Group operates in an energy intensive industry and is therefore required to partake in emission trading schemes (‘ETS’). The
Group recognises an emission liability in line with the production of emissions that give rise to the obligation. To the extent the
liability is covered by allowances held, the liability is recognised at the cost of these allowances held and if insufficient
allowances are held, the remaining uncovered portion is measured at the spot market price of allowances at the balance sheet
date. The expense is presented within ‘production costs’ under ‘cost of sales’ and the accrual is presented in ‘trade and other
payables’. Any allowance purchased to settle the Group’s liability is recognised on the balance sheet as an intangible asset.
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
2. Basis of preparation continued
Strategic Report
Corporate Governance
Financial Statements
146–147
EnQuest PLC Annual Report and Accounts 2025
2. Basis of preparation continued
The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures,
at the date of the consolidated financial statements. Estimates and assumptions are continuously evaluated and are based on
management’s experience and other factors, including expectations of future events that are believed to be reasonable under
the circumstances. Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods.
The accounting judgements and estimates that have a significant impact on the results of the Group are set out below and
should be read in conjunction with the information provided in the Notes to the financial statements. The Group does not
consider deferred taxation (including EPL) to represent a significant estimate or judgement as the estimates and assumptions
relating to projected earnings and cash flows used to assess deferred taxation are the same as those applied in the Group
impairment process as described below in Recoverability of asset carrying values. Judgements and estimates, not all of which
are significant, made in assessing the impact of climate change and the transition to a lower carbon economy on the
consolidated financial statements are also set out below. Where an estimate has a significant risk of resulting in a material
Climate change and energy transition
As covered in the Group’s principal risks on Price and Foreign Exchange Risk on page 70, the Group recognises that the energy
transition is likely to impact the demand, and hence the future prices, of commodities such as oil and natural gas. This in turn
may affect the recoverable amount of property, plant and equipment and goodwill and deferred tax, as well as an acceleration
of cessation of production and subsequent decommissioning expenditure, in the oil and gas industry. The Group acknowledges
that there are a range of possible energy transition scenarios that may indicate different outcomes for oil prices. There are
inherent limitations with scenario analysis and it is difficult to predict which, if any, of the scenarios might eventuate.
The Group has assessed the potential impacts of climate change and the transition to a lower carbon economy in preparing
the consolidated financial statements, including the Group’s current assumptions relating to demand for oil and natural gas
and their impact on the Group’s long-term price assumptions. See Recoverability of asset carrying values: Oil prices.
While the pace of transition to a lower carbon economy is uncertain, oil and natural gas demand is expected to remain a key
element of the energy mix for many years based on stated policies, commitments and announced pledges to reduce
emissions. Therefore, given the useful lives of the Group’s current portfolio of oil and gas assets, a material adverse change is
not expected to the carrying values of EnQuest’s assets and liabilities within the next financial year as a result of climate change
and the transition to a lower carbon economy.
Management will continue to review price assumptions as the energy transition progresses and this may result in impairment
charges or reversals in the future.
The Group has considered its critical accounting judgements and key sources of estimation uncertainty, and these are set
out below.
Recoverability of asset carrying values
Judgements:
The Group assesses each asset or cash-generating unit (‘CGU’) (excluding goodwill, which is assessed annually
regardless of indicators) in each reporting period to determine whether any indication of impairment or impairment reversal
exists. Assessment of indicators of impairment or impairment reversal and the determination of the appropriate grouping of
assets into a CGU or the appropriate grouping of CGUs for impairment purposes require significant management judgement.
For example, individual oil and gas properties may form separate CGUs, whilst certain oil and gas properties with shared
infrastructure may be grouped together to form a single CGU. Alternative groupings of assets or CGUs may result in a different
outcome from impairment testing. See note 10 for details on how these groupings have been determined in relation to the
impairment testing of goodwill.
Estimates:
Where an indicator of impairment exists, a formal estimate of the recoverable amount is made, which is considered
to be the higher of the fair value less costs to dispose (‘FVLCD’) and value in use (‘VIU’). The assessments require the use of
estimates and assumptions, such as the effects of inflation and deflation on operating expenses, cost profile changes including
those related to emission reduction initiatives such as alternative fuel provision at Kraken, discount rates, capital expenditure,
production profiles, reserves and resources, and future commodity prices, including the outlook for global or regional market
supply-and-demand conditions for crude oil and natural gas. Such estimates reflect management’s best estimate of the
related cash flows based on management’s plans for the assets and their future development.
As described above, the recoverable amount of an asset is the higher of its VIU and its FVLCD. When the recoverable amount is
measured by reference to FVLCD, in the absence of quoted market prices or binding sale agreement, estimates are made
regarding the present value of future post-tax cash flows. These estimates are made from the perspective of a market
participant and include prices, life of field production profiles based on reserves and resources to which it is considered
probable that a market participant would attribute value to them, operating costs, capital expenditure, decommissioning costs,
tax attributes, risking factors applied to cash flows, and discount rates.
Details of impairment charges and reversals recognised in the income statement and details on the carrying amounts of assets
are shown in note 9, note 10 and note 11.
The estimates for assumptions made in impairment tests in 2025 relating to discount rates and oil prices are discussed below.
Changes in the economic environment or other facts and circumstances may necessitate revisions to these assumptions and
could result in a material change to the carrying values of the Group’s assets within the next financial year.
Discount rates
For discounted cash flow calculations, future cash flows are adjusted for risks specific to the CGU. FVLCD discounted cash flow
calculations use the post-tax discount rate. The discount rate is derived using the weighted average cost of capital
methodology. The discount rates applied in impairment tests are reassessed each half-year and, in 2025, the post-tax discount
rate was estimated at 9.0% (2024: 10.0%) reflecting the impact from the Group’s reduced debt position and clarity over the UK
fiscal system.
Oil prices
The price assumptions used for FVLCD impairment testing were based on latest internal forecasts as at 31 December 2025. These
price forecasts reflect EnQuest’s views of global supply and demand, including the potential financial impacts on the Group of
climate change and the transition to a low carbon economy as outlined in the Basis of Preparation, and are benchmarked with
external sources of information such as analyst forecasts. The Group’s price forecasts are reviewed and approved by
management, the Audit Committee and the Board of Directors.
EnQuest revised its oil price assumptions for FVLCD impairment testing compared to those used in 2024, with nearer-term prices
reflecting current market dynamics and external forecasts. A summary of the Group’s revised price assumptions is provided
below. These assumptions, which represent management’s best estimate of future prices, sit within the range of external
forecasts. Discounts or premiums are applied to price assumptions based on the characteristics of the oil produced and the
terms of the relevant sales contracts.
When compared to the latest available Paris-consistent climate scenario modelling data released by the World Business
Council of Sustainable Development (‘WBCSD’) in May 2024, EnQuest’s assumption is broadly aligned with the top end of a range
of Paris-consistent scenario’s. When compared to the International Energy Agency’s (‘IEA’) forecast prices under its Net Zero
Emissions by 2050 Scenario (‘NZE’) ,published in November 2025, which is also considered a Paris-consistent scenario and maps
out a pragmatic but ambitious global pathway for the energy sector to achieve net zero CO2 emissions by 2050 and is
consistent with a long-term goal of limiting the rise in global average temperatures to 1.5°C (with a 50% probability), EnQuest’s
short-term assumptions are below those assumed under the NZE, while its medium and longer-term prices are significantly
higher. As further considered later in this note, management believes a 10% reduction in crude oil price assumptions to be a
reasonably possible change and has provided an impairment sensitivity on this basis. However, the potential impact of applying
the IEA NZE Scenario, which is just one view of the possible impact of climate change, would result in a materially higher
impairment charge.
An inflation rate of 2% (2024: 2%) is applied from 2030 onwards to determine the price assumptions in nominal terms
(see table below).
The price assumptions used in 2024 were $75.0/bbl (2025), $75.0/bbl (2026), $75.0/bbl (2027) and $76.5/bbl real thereafter, inflated
at 2.0% per annum from 2028.
Note |
2026 |
2027 |
2028 |
2029> (i) |
Brent oil ($/bbl) |
65.0 |
67.5 |
72.5 |
75.0 |
(i) Inflated at 2% from 2030
Oil and natural gas reserves
Hydrocarbon reserves are estimates of the amount of hydrocarbons that can be economically and legally extracted from the
Group’s oil and gas properties. The business of the Group is to responsibly optimise production, leverage existing infrastructure,
deliver a strong decommissioning performance and explore new energy and decarbonisation opportunities. Factors such as
the availability of geological and engineering data, reservoir performance data, acquisition and divestment activity, and drilling
of new wells all impact on the determination of the Group’s estimates of its oil and gas reserves and result in different future
production profiles affecting prospectively the discounted cash flows used in impairment testing, the anticipated date of
decommissioning and the depletion charges in accordance with the unit of production method, as well as the going concern
assessment. Economic assumptions used to estimate reserves change from period to period as additional technical and
operational data is generated. This process may require complex and difficult geological judgements to interpret the data.
The Group uses proven and probable (‘2P’) reserves (see page 34) and, for the Kraken CGU, 2C resources associated with the
Bressay gas well as an alternative fuel provision for the Kraken FPSO as the basis for calculations of expected future cash
flows from underlying assets because this represents the reserves and resources management intends to develop and it is
probable that a market participant would attribute value to them. Third-party audits of EnQuest’s reserves and resources are
conducted annually.
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
148–149
2. Basis of preparation continued
2. Basis of preparation continued
Sensitivity analyses
Changes in price and its consequential impact on impairment and deferred tax along with the discount rate impact on
impairment and decommissioning are considered to be the only key sources of estimation uncertainty, although other
sensitivities that the Group believes are useful for users of these accounts but are not considered to have a significant risk of
resulting in material changes to carrying amounts in the next 12 months, may also be provided.
Management tested the impact of a change in cash flows in FVLCD impairment testing arising from a 10% reduction in crude
price assumptions, which it believes to be a reasonably possible change given the prevailing macroeconomic environment.
Price reductions of this magnitude in isolation could indicatively lead to a further reduction in the carrying amount of EnQuest’s
oil and gas properties by approximately $198.7 million, which is approximately 8% of the net book value of property, plant and
equipment as at 31 December 2025.
The oil price sensitivity analysis above does not, however, represent management’s best estimate of any impairments that
might be recognised as it does not fully incorporate consequential changes that may arise, such as reductions in costs and
changes to business plans, phasing of development, levels of reserves and resources, and production volumes. As the extent of
a price reduction increases, the more likely it is that costs would decrease across the industry. The oil price sensitivity analysis
therefore does not reflect a linear relationship between price and value that can be extrapolated.
Management also tested the impact of a one percentage point change in the discount rate of 9.0% used for FVLCD impairment
testing of oil and gas properties, which is considered a reasonably possible change given the prevailing macroeconomic
environment. If the discount rate was one percentage point higher across all tests performed, the net impairment charge in
2025 would have been approximately $51.9 million higher. If the discount rate was one percentage point lower, the net
impairment reversal would have been approximately $24.3 million higher.
Goodwill
Irrespective of whether there is any indication of impairment, EnQuest is required to test annually for impairment of goodwill
acquired in business combinations. The Group carries goodwill of approximately $139.5 million on its balance sheet (2024: $134.4
million), principally relating to the acquisitions of the Magnus oil field (acquired in 2018) in the UK and Block 12W in Vietnam
(acquired in 2025). Sensitivities and additional information relating to impairment testing of goodwill are provided in note 10.
The Group assesses the recoverability of its deferred tax assets at each period end. Sensitivities and additional information
75% Magnus acquisition contingent consideration
Judgement:
During 2025, management commenced discussions with bp to settle the 75% Magnus contingent consideration
arrangement. Management assessed that the agreement to settle the Magnus contingent consideration, signed and
concluded in February 2026, was substantially agreed with bp at 31 December 2025. Therefore the agreement price of $60.0
million was deemed to be a reasonable fair value in line with IFRS 13, for the contingent consideration as at 31 December 2025,
resulting in a pre-tax gain of $391.3 million. If management had concluded the agreement was not substantially complete at
year end, the contingent consideration would have continued to be valued based on the present value of the future expected
cash flows from the Magnus field, which at 30 June 2025 resulted in a provision of $432.9 million being recorded.
Provisions
Estimates:
Decommissioning costs will be incurred by the Group at the end of the operating life of some of the Group’s oil and
gas production facilities and pipelines. The Group assesses its decommissioning provision at each reporting date. The ultimate
decommissioning costs are uncertain and cost estimates can vary in response to many factors, including changes to relevant
legal requirements, estimates of the extent and costs of decommissioning activities, the emergence of new restoration
techniques and experience at other production sites. The expected timing, extent and amount of expenditure may also change,
for example, in response to changes in oil and gas reserves or changes in laws and regulations or their interpretation. Therefore,
significant estimates and assumptions are made in determining the provision for decommissioning. As a result, there could be
significant adjustments to the provisions established which would affect future financial results.
The timing and amount of future expenditures relating to decommissioning and environmental liabilities are reviewed annually.
The rate used in discounting the cash flows is reviewed half-yearly. The Group assesses discount rates in each geography in
which it operates using an appropriate benchmark, usually government bonds. As such, the nominal discount rate used to
determine the balance sheet obligations ranged from 3.1% to 4.5% (2024: 3.1% to 4.5%). Costs at future prices are determined by
applying inflation rates. The inflation rates applied are usually management’s estimate based on relevant in-country
benchmarking, but in certain circumstances inflation is applied in accordance with the relevant operating agreement. As such,
where inflation has been applied to decommissioning costs, it has ranged between 1.0% and 2.0% per annum thereafter (2024:
1.0% to 2.0%). The weighted average period over which North Sea decommissioning costs are generally expected to be incurred
is estimated to be approximately 12 years.
Further information about the Group’s provisions is provided in note 22. Changes in assumptions could result in a material
change in their carrying amounts within the next financial year. A sensitivity has only been run for the UK North Sea segment
given its materiality compared to Malaysia and Vietnam. A one percentage point decrease in the nominal discount rate applied,
which is considered a reasonably possible change given the prevailing macroeconomic environment, could increase the
Group’s provision balances by approximately $58.6 million (2024: $59.4 million). The pre-tax impact on the Group income
statement would be a charge of approximately $57.5 million (2024: $58.7 million).
Business combination
Judgement:
The Group determined that the acquisition of Block 12W in Vietnam during the year was the acquisition of a
business, due to the acquired set of activities and assets including inputs and processes critical to the ability to continue
producing outputs.
Estimates:
While the risk that the acquisition fair value of Block 12W in Vietnam materially changes in the next 12 months is low
and so is not considered a key source of estimation uncertainty, for business combinations the Group determines the fair value
of property, plant and equipment acquired based on the discounted cash flows at the time of acquisition from the proven and
probable reserves. In assessing the discounted cash flows, the estimated future cash flows attributable to the asset are
discounted to their present value using a discount rate that reflects the market assessments of the time value of money and the
risks specific to the asset at the time of the acquisition. In calculating the asset fair value, the Group will apply oil price
The Group’s organisational structure reflects the various activities in which EnQuest is engaged. Management has considered
the requirements of IFRS 8 Operating Segments in regard to the determination of operating segments and concluded that at
31 December 2025, the Group had two significant operating segments: the North Sea and Malaysia. The Vietnam, Indonesia and
Brunei operations, which are new for 2025, are not yet deemed significant in accordance with the quantitative thresholds for
separate disclosure under IFRS 8, and so these operations have been aggregated into one reporting group, alongside other
Corporate activities. Operations are managed by location and all information is presented per geographical segment. The
Group’s segmental reporting structure remained in place throughout 2025. The North Sea’s activities include Upstream,
Midstream, Decommissioning and Veri Energy. Veri Energy is not considered a separate operating segment as it does not yet
earn revenues and is not yet a material part of the Group from a capital and human resources allocation perspective.
Malaysia’s activities include Upstream and Decommissioning. The Group’s reportable segments may change in the future
depending on the way that resources may be allocated and performance assessed by the Chief Operating Decision Maker, who
for EnQuest is the Chief Executive. The information reported to the Chief Operating Decision Maker does not include an analysis
of assets and liabilities, and accordingly this information is not presented, in line with IFRS 8 paragraph 23.
Adjustments |
||||||
Year ended 31 December 2025 |
All other |
Total |
and |
|||
$’000 |
North Sea |
Malaysia |
segments |
segments |
eliminations (i), (iii) |
Consolidated |
Revenue and other operating income: |
||||||
Revenue from contracts with customers |
895,313 |
114,110 |
52,842 |
1,062,265 |
– |
1,062,265 |
Other operating income/(expense) |
1,770 |
– |
343 |
2,113 |
53,922 |
56,035 |
Total revenue and other operating income/(expense) |
897,083 |
114,110 |
53,185 |
1,064,378 |
53,922 |
1,118,300 |
Income/(expenses) line items: |
||||||
Depreciation and depletion |
(244,937) |
(18,183) |
(9,308) |
(272,428) |
– |
(272,428) |
Net impairment reversal/(charge) to oil and gas assets |
5,819 |
– |
– |
5,819 |
– |
5,819 |
Exploration write-off and impairments |
(173) |
– |
– |
(173) |
– |
(173) |
Segment profit/(loss) (ii), (iii) |
489,959 |
43,770 |
9,090 |
542,819 |
105,975 |
648,794 |
Other disclosures: |
||||||
Capital expenditure (iv) |
148,814 |
63,214 |
1,328 |
213,356 |
– |
213,356 |
Adjustments |
||||||
Year ended 31 December 2024 |
All other |
Total |
and |
|||
$’000 |
North Sea |
Malaysia |
segments |
segments |
eliminations (i), (iii) |
Consolidated |
Revenue and other operating income: |
||||||
Revenue from contracts with customers |
1,063,829 |
123,728 |
– |
1,187,557 |
– |
1,187,557 |
Other operating income/(expense) |
2,709 |
– |
260 |
2,969 |
(9,817) |
(6,848) |
Total revenue and other operating income/(expense) |
1,066,538 |
123,728 |
260 |
1,190,526 |
(9,817) |
1,180,709 |
Income/(expenses) line items: |
||||||
Depreciation and depletion |
(252,208) |
(17,042) |
(41) |
(269,291) |
– |
(269,291) |
Net impairment (charge)/reversal to oil and gas assets |
(71,414) |
– |
– |
(71,414) |
– |
(71,414) |
Exploration write-off and impairments |
– |
(183) |
– |
(183) |
– |
(183) |
Segment profit/(loss) (ii), (iii) |
274,354 |
45,536 |
9,013 |
328,903 |
(17,375) |
311,528 |
Other disclosures: |
||||||
Capital expenditure (iv) |
313,557 |
32,774 |
15 |
346,346 |
– |
346,346 |
(i)
Finance income and costs and gains and losses on derivatives are not allocated to individual segments as the underlying instruments are managed on a Group basis
(ii)
The consolidated profit/(loss) figure reconciles with Profit/(loss) from operations before tax and finance income/(costs) in the income statement. Tax is not included as
this is not disclosed to the Chief Operating Decision Maker within the segment profit/(loss)
(iii)
Inter-segment revenues are eliminated on consolidation. All other adjustments are part of the reconciliations presented further below
(iv)
Capital expenditure consists of property, plant and equipment and intangible exploration and appraisal assets
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
150–151
3. Segment information continued
4. Revenue and expenses continued
Reconciliation of profit/(loss):
Year ended |
Year ended |
|
31 December |
31 December |
|
2025 |
2024 |
|
$’000 |
$’000 |
|
Segment profit/(loss) before tax and finance income/(costs) |
542,819 |
328,903 |
Finance costs |
(164,591) |
(159,422) |
Finance income |
9,224 |
14,508 |
Gain/(loss) on derivatives (i) |
105,975 |
(17,375) |
Profit/(loss) before tax |
493,427 |
166,614 |
(i)
Includes $28.5 million realised gains on derivatives (2024: $17.6 million realised losses) and $77.5 million unrealised gains on derivatives (2024: $0.3 million). See note
18(b) for further detail
Revenue from three customers each exceeds 10% of the Group’s consolidated revenue arising from sales of crude oil, with
amounts of $414.3 million, $103.6 million and $93.0 million per each single customer (2024: three customers; $394.8 million, $156.0
(a) Revenue and other operating income
The Group generates revenue through the sale of crude oil, gas and condensate to third parties, and through the provision of
infrastructure to its customers for tariff income. Revenue from contracts with customers is recognised when control of the goods
or services is transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled
in exchange for those goods or services. The Group has concluded that it is the principal in its revenue arrangements because it
typically controls the goods or services before transferring them to the customer. The normal credit term is 30 days or less upon
Sale of crude oil, gas and condensate
The Group sells crude oil, gas and condensate directly to customers. The sale represents a single performance obligation, being
the sale of barrels equivalent to the customer on taking physical possession or on delivery of the commodity into an
infrastructure. At this point the title passes to the customer and revenue is recognised. The Group principally satisfies its
performance obligations at a point in time; the amounts of revenue recognised relating to performance obligations satisfied
over time are not significant. Transaction prices are referenced to quoted prices, plus or minus an agreed fixed premium or
discount rate to an appropriate benchmark, if applicable.
Tariff revenue for the use of Group infrastructure
Tariffs are charged to customers for the use of infrastructure owned by the Group. The revenue represents the performance of
an obligation for the use of Group assets over the life of the contract. The use of the assets is not separable as they are
interdependent in order to fulfil the contract and no one item of infrastructure can be individually isolated. Revenue is
recognised as the performance obligations are satisfied over the period of the contract, generally a period of 12 months or less,
on a monthly basis based on throughput at the agreed contracted rates.
Other operating income
Other operating revenue is recognised to the extent that it is probable economic benefits will flow to the Group and the revenue
The Group enters into commodity derivative trading transactions which can be settled net in cash. Accordingly, any gains or
losses are not considered to constitute revenue from contracts with customers in accordance with the requirements of IFRS 15,
rather are accounted for in line with IFRS 9 and included within other operating income (see note 18).
Year ended |
Year ended |
|
31 December |
31 December |
|
2025 |
2024 |
|
$’000 |
$’000 |
|
Revenue from contracts with customers: |
||
Revenue from crude oil sales |
858,166 |
1,020,266 |
Revenue from gas and condensate sales (i) |
200,526 |
164,647 |
Tariff revenue |
3,573 |
2,644 |
Total revenue from contracts with customers |
1,062,265 |
1,187,557 |
Realised gains/(losses) on commodity derivative contracts (see note 18) |
8,744 |
(12,907) |
Unrealised gains/(losses) on commodity derivative contracts (see note 18) |
45,178 |
3,090 |
Other |
2,113 |
2,969 |
Total revenue and other operating income |
1,118,300 |
1,180,709 |
(i)
Includes onward sale of third-party gas purchases not required for injection activities at Magnus (see note 4(b))
Disaggregation of revenue from contracts with customers
Year ended |
Year ended |
|||||||
31 December 2025 |
31 December 2024 |
|||||||
$’000 |
$’000 |
|||||||
North Sea |
Malaysia |
Vietnam |
Total |
North Sea |
Malaysia |
Vietnam |
Total |
|
Revenue from contracts with customers: |
||||||||
Revenue from crude oil sales |
703,071 |
103,299 |
51,796 |
858,166 |
900,310 |
119,956 |
– |
1,020,266 |
Revenue from gas and condensate sales (i) |
192,074 |
7,406 |
1,046 |
200,526 |
162,951 |
1,696 |
– |
164,647 |
Tariff revenue |
168 |
3,405 |
– |
3,573 |
568 |
2,076 |
– |
2,644 |
Total revenue from contracts with customers |
895,313 |
114,110 |
52,842 |
1,062,265 |
1,063,829 |
123,728 |
– |
1,187,557 |
(i)
Includes onward sale of third-party gas purchases not required for injection activities at Magnus (see note 4(b))
Production imbalances, movements in under/over-lift and movements in inventory are included in cost of sales. The over-lift
liability is recorded at the cost of the production imbalance to represent a provision for production costs attributable to the
volumes sold in excess of entitlement. The under-lift asset is recorded at the lower of cost and net realisable value (‘NRV’),
consistent with IAS 2, to represent a right to additional physical inventory. An under-lift of production from a field is included in
Year ended |
Year ended |
|
31 December |
31 December |
|
2025 |
2024 |
|
$’000 |
$’000 |
|
Production costs |
344,580 |
307,634 |
Tariff and transportation expenses |
69,189 |
70,449 |
Realised (gain)/loss on derivative contracts related to operating costs (see note 18) |
(19,711) |
4,735 |
Unrealised (gains)/losses on derivative contracts related to operating costs (see note 18) |
(32,342) |
2,823 |
Other non-cash UKA losses |
11,490 |
1,335 |
Change in lifting position |
3,350 |
3,528 |
Crude oil inventory movement |
14,057 |
(1,356) |
Depletion of oil and gas assets (i) |
267,299 |
263,251 |
Other cost of operations (ii) |
179,628 |
134,984 |
Total cost of sales |
837,540 |
787,383 |
(i)
Includes $29.2 million (2024: $27.9 million) Kraken and Vietnam FPSO right-of-use asset depreciation charge and $26.3 million (2024: $23.5 million) of other right-of-use
assets depreciation charge
(ii)
Year ended |
Year ended |
|
31 December |
31 December |
|
2025 |
2024 |
|
$’000 |
$’000 |
|
Staff costs (see note 4(e)) |
73,634 |
75,833 |
Depreciation (i) |
5,129 |
6,040 |
Other general and administration costs |
26,359 |
26,748 |
Recharge of costs to operations and joint venture partners |
(97,640) |
(102,919) |
Total general and administration expenses |
7,482 |
5,702 |
(i)
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
152–153
4. Revenue and expenses continued
Year ended |
Year ended |
|
31 December |
31 December |
|
2025 |
2024 |
|
$’000 |
$’000 |
|
Net foreign exchange (losses)/gains |
(28,330) |
9,975 |
Rental income from office sublease |
1,893 |
2,201 |
Fair value changes in contingent consideration (see note 21) |
387,145 |
(15,904) |
Change in decommissioning provisions (see note 22) |
(9,727) |
(6,666) |
Change in Thistle decommissioning provision (see note 22) |
(4,772) |
(412) |
Drilling rig contract cancellation costs (i) |
– |
(14,629) |
Write-down of relinquished assets/unsuccessful exploration expenditure (see note 11) |
(173) |
(183) |
Insurance income |
(53) |
1,663 |
Reversal of provisions |
4,685 |
– |
Other |
19,029 |
19,273 |
Total other income/(expenses) |
369,697 |
(4,682) |
The Group’s pension obligations consist of defined contribution plans. The Group pays fixed contributions with no further
payment obligations once the contributions have been paid. The amount charged to the Group income statement in respect of
pension costs reflects the contributions payable in the year. Differences between contributions payable during the year and
contributions actually paid are shown as either accrued liabilities or prepaid assets in the balance sheet.
Year ended | Year ended | |
31 December | 31 December | |
2025 | 2024 | |
$’000 | $’000 | |
Wages and salaries | 62,286 | 66,700 |
Social security costs | 6,202 | 5,899 |
Defined contribution pension costs | 5,932 | 5,265 |
(Credit)/expense of share-based payments (see note 20) | (669) | 983 |
Other staff costs | 13,969 | 12,300 |
Total employee costs | 87,720 | 91,147 |
Contractor costs | 46,529 | 37,493 |
Total staff costs | 134,249 | 128,640 |
General and administration staff costs (see note 4(c)) | 73,634 | 75,833 |
Non-general and administration costs | 60,615 | 52,807 |
Total staff costs | 134,249 | 128,640 |
The monthly average number of persons, excluding contractors, employed by the Group during the year was 694, with 359 in the
general and administration staff costs and 335 directly attributable to assets (2024: 673 of which 336 in general and
The following amounts for the year ended 31 December 2025 and for the comparative year ended 31 December 2024 were
payable by the Group to Deloitte:
Year ended |
Year ended |
|
31 December |
31 December |
|
2025 |
2024 |
|
$’000 |
$’000 |
|
Fees payable to the Company’s auditor for the audit of the parent company and Group financial statements |
1,476 |
1,367 |
The audit of the Company’s subsidiaries |
303 |
173 |
Total audit |
1,779 |
1,540 |
Audit-related assurance services (i) |
694 |
589 |
Total audit and audit-related assurance services |
2,473 |
2,129 |
Total auditor’s remuneration |
2,473 |
2,129 |
(i)
Audit-related assurance services in both years primarily include the review of the Group’s interim results, G&A assurance review and the provision of customary
Year ended |
Year ended |
|
31 December |
31 December |
|
2025 |
2024 |
|
$’000 |
$’000 |
|
Finance costs: |
||
Loan interest payable |
6,027 |
18,524 |
Bond interest payable |
69,269 |
54,971 |
Unwinding of discount on decommissioning provisions (see note 22) |
35,912 |
30,290 |
Unwinding of discount on other provisions (see note 22) |
755 |
911 |
Debt refinancing fees (see note 17) |
– |
4,809 |
Finance charges payable under leases (see note 23) |
25,100 |
27,673 |
Finance fees on loans and bonds including amortisation of capitalised fees |
15,337 |
14,473 |
Other financial expenses |
12,191 |
7,771 |
Total finance costs |
164,591 |
159,422 |
Finance income: |
||
Bank interest receivable |
6,535 |
11,110 |
RockRose loan interest (see note 18(f)) |
2,639 |
3,263 |
Other financial income |
50 |
135 |
Total finance income |
9,224 |
14,508 |
(a) Income tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities,
based on tax rates and laws that are enacted or substantively enacted by the balance sheet date.
The Group’s operations are subject to a number of specific tax rules which apply to exploration, development and production. In
addition, the tax provision is prepared before the relevant companies have filed their tax returns with the relevant tax authorities
and, significantly, before these have been agreed. As a result of these factors, the tax provision process necessarily involves the
use of a number of estimates and judgements, including those required in calculating the effective tax rate.
amounts in the Group financial statements. However, deferred tax is not accounted for if a temporary difference arises from
initial recognition of other assets or liabilities in a transaction other than a business combination that at the time of the
transaction affects neither accounting nor taxable profit or loss. Deferred tax is measured on an undiscounted basis using tax
rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when
the related deferred tax asset is realised or the deferred tax liability is settled. Deferred tax assets are recognised to the extent
that it is probable that future taxable profits will be available against which the temporary differences can be utilised.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, except where the
Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse
in the foreseeable future.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date. Deferred income tax assets and
liabilities are offset only if a legal right exists to offset current tax assets against current tax liabilities, the deferred income taxes
The Group has applied the mandatory exception to recognising and disclosing information about the deferred tax assets and
liabilities relating to Pillar Two income taxes in accordance with the amendments to IAS 12 published by the International
Accounting Standards Board (‘IASB’) on 23 May 2023.
Production taxes
In addition to corporate income taxes, the Group’s financial statements also include and disclose production taxes on net
income determined from oil and gas production.
Production tax relates to Petroleum Revenue Tax (‘PRT’) within the UK and is accounted for under IAS 12 Income Taxes since it has
the characteristics of an income tax as it is imposed under government authority and the amount payable is based on taxable
profits of the relevant fields. Current and deferred PRT is provided on the same basis as described above for income taxes.
Investment allowance
The UK taxation regime provides for a reduction in ring-fence supplementary charge tax where investment in new or existing UK
assets qualify for a relief known as investment allowance. Investment allowance must be activated by commercial production
from the same field before it can be claimed. The Group has both unactivated and activated investment allowances which
could reduce future supplementary charge taxation. The Group’s policy is that investment allowance is recognised as a
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
154–155
6. Income tax continued
6. Income tax continued
Energy Profits Levy
The Energy (Oil & Gas) Profits Levy Act 2022 (‘EPL’) applies an additional tax on the profits earned by oil and gas companies from
the production of oil and gas on the United Kingdom Continental Shelf until 31 March 2030. This is accounted for under IAS 12
Income Taxes since it has the characteristics of an income tax as it is imposed under government authority and the amount
payable is based on taxable profits of the relevant UK companies. Current and deferred tax is provided on the same basis as
The major components of income tax expense/(credit) are as follows:
Year ended |
Year ended |
|
31 December |
31 December |
|
2025 |
2024 |
|
$’000 |
$’000 |
|
Current UK income tax |
||
Current income tax charge |
1,051 |
– |
Current overseas income tax |
||
Current income tax charge |
12,351 |
11,432 |
Adjustments in respect of current income tax of previous years |
307 |
(746) |
UK Energy Profits Levy |
||
Current year charge |
84,069 |
10,262 |
Adjustments in respect of current charge of previous years (i) |
19,378 |
(8,803) |
Total current income tax |
117,156 |
12,145 |
Deferred UK income tax |
||
Relating to origination and reversal of temporary differences |
222,897 |
42,745 |
Adjustments in respect of deferred income tax of previous years (i) |
12,209 |
(9,103) |
Deferred overseas income tax |
||
Relating to origination and reversal of temporary differences |
7,581 |
7,071 |
Adjustments in respect of deferred income tax of previous years |
(363) |
31 |
Deferred UK Energy Profits Levy |
||
Relating to origination and reversal of temporary differences |
134,985 |
11,156 |
Adjustments in respect of changes in tax rates |
– |
6,889 |
Adjustments in respect of deferred charge of previous years |
(2,600) |
1,907 |
Total deferred income tax |
374,709 |
60,696 |
Income tax expense reported in profit or loss |
491,865 |
72,841 |
(i)
Adjustments in respect of previous years arose upon finalisation of various UK tax returns and include an additional EPL current tax liability of $19.4 million and an
additional deferred tax liability of $7.8 million. These adjustments reflect corrections to the amount of tax relief accrued in the 2024 financial year end Group tax
position arising as a result of reclassifications made during that year from inventory to property, plant and equipment as part of a review of well supplies
(b) Reconciliation of total income tax charge
A reconciliation between the income tax charge and the product of accounting profit multiplied by the UK statutory tax rate
is as follows:
Year ended |
Year ended |
|
31 December |
31 December |
|
2025 |
2024 |
|
$’000 |
$’000 |
|
Profit/(loss) before tax |
493,427 |
166,614 |
UK statutory tax rate applying to North Sea oil and gas activities of 40% (2024: 40%) |
197,371 |
66,646 |
Supplementary corporation tax non-deductible expenditure |
4,383 |
5,809 |
Non-deductible expenditure (i) |
8,537 |
26,114 |
Non-taxable gain on sale of assets |
– |
505 |
Petroleum revenue tax (net of income tax benefit) |
(363) |
(8,938) |
Tax in respect of non-ring-fence trade |
13,776 |
7,298 |
Deferred tax asset not recognised in respect of non-ring-fence trade |
21,426 |
12,243 |
Deferred tax asset recognised on previously unrecognised losses |
– |
(48,115) |
UK Energy Profits Levy (ii) |
95,179 |
(13,921) |
UK Energy Profits Levy – changes in tax rates (iii) |
– |
6,889 |
UK Energy Profits Levy – abolishment of Investment Allowance (iii) |
– |
35,339 |
UK Energy Profits Levy – extension to March 2030 (iv) |
123,875 |
– |
Adjustments in respect of prior years |
28,931 |
(16,713) |
Overseas tax rate differences |
(1,323) |
2,045 |
Share-based payments |
(132) |
(1,407) |
Other differences |
205 |
(953) |
At the effective income tax rate of 100% (2024: 44%) |
491,865 |
72,841 |
(i)
Predominantly in relation to non-qualifying expenditure relating to the initial recognition exemption utilised under IAS 12 upon acquisition of Golden Eagle given that at
the time of the transaction, it affected neither accounting profit nor taxable profit
(ii)
This consists of an Energy Profits Levy current tax charge of $84.1 million (2024: $10.30 million) and deferred Energy Profits Levy charge of $11.1 million (2024: $18.0 million).
The 2025 charge was impacted by the higher rate of 38% which applied from 1 November 2024 (Period to 31 October 2024: 35%) and the removal of investment
allowances
(iii)
Refers to the impact of the increased rate and removal of investment allowances that were substantially enacted in 2024
(iv)
Reflects the impact of the substantively enacted two-year extension referred to in part (e) below
Deferred income tax relates to the following:
Charge/(credit) for the year |
||||
Group balance sheet |
recognised in profit or loss |
|||
2025 |
2024 |
2025 |
2024 |
|
$’000 |
$’000 |
$’000 |
$’000 |
|
Deferred tax liability |
||||
Accelerated capital allowances |
1,039,396 |
911,501 |
126,945 |
33,701 |
1,039,396 |
911,501 |
|||
Deferred tax asset |
||||
Losses |
(627,124) |
(717,900) |
90,777 |
(22,012) |
Decommissioning liability |
(296,069) |
(263,705) |
(33,047) |
2,095 |
Other temporary differences (i) |
(137,214) |
(331,679) |
190,034 |
46,912 |
(1,060,407) |
(1,313,284) |
374,709 |
60,696 |
|
Net deferred tax (assets) (ii) |
(21,011) |
(401,783) |
||
Reflected in the balance sheet as follows: |
||||
Deferred tax assets |
(271,375) |
(506,481) |
||
Deferred tax liabilities |
250,364 |
104,698 |
||
Net deferred tax (assets) |
(21,011) |
(401,783) |
||
(i)
Predominantly includes $107.7 million on deferred income in note 24 and $17.5 million Petroleum Revenue Tax refunds
(ii)
The total amounts for EPL included in net deferred assets are $276.3 million for accelerated capital allowances offset by $56.7 million for other items, which
predominantly includes $52.5 million related to deferred income (note 24)
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
156–157
6. Income tax continued
Reconciliation of net deferred tax assets/(liabilities)
2025 |
2024 |
|
$’000 |
$’000 |
|
At 1 January |
401,783 |
462,479 |
Tax expense during the period recognised in profit or loss |
(374,709) |
(60,696) |
Deferred taxes acquired in business combinations (see note 30) |
(6,063) |
– |
At 31 December |
21,011 |
401,783 |
(d) Tax losses
The Group’s deferred tax assets at 31 December 2025 are recognised to the extent that taxable profits are expected to arise in
the future against which tax losses and allowances in the UK can be utilised. In accordance with IAS 12 Income Taxes, the Group
assesses the recoverability of its deferred tax assets at each period end. Sensitivities have been run on the oil price assumption,
with a 10% change being considered a reasonable possible change for the purposes of sensitivity analysis (see note 2). The
Group is currently recognising all UK tax losses (with the exception of those noted below) and neither a 10% increase or 10%
decrease in oil price would result in any change to the full recognition.
The Group has unused UK mainstream corporation tax losses of $578.4 million (2024: $496.1 million) and ring-fence tax losses of
$1,117.5 million (2024: $1,117.5 million) associated with EnQuest Progress Limited, for which no deferred tax asset has been
recognised at the balance sheet date as recovery of these losses is to be established. In addition, the Group has not recognised
a deferred tax asset for the adjustment to bond valuations on the adoption of IFRS 9. The benefit of this deduction is taken over
ten years, with a deduction of $2.2 million being taken in the current period and the remaining benefit of $4.2 million (2024: $6.3
million) remaining unrecognised.
The Group has unused Malaysian income tax losses of $16.3 million (2024: $14.7 million) arising in respect of the Tanjong Baram
RSC for which no deferred tax asset has been recognised at the balance sheet date due to uncertainty of recovery of
these losses.
No deferred tax has been provided on unremitted earnings of overseas subsidiaries. The Finance Act 2009 exempted foreign
dividends from the scope of UK corporation tax where certain conditions are satisfied.
(e) Changes in legislation
On 29 July 2024, the UK Government announced various changes to the EPL including an extension to 31 March 2030 (previously
31 March 2028) to which the EPL applies. This extension was substantively enacted on 3 March 2025, with the impact on the
The calculation of basic earnings per share is based on the profit after tax and on the weighted average number of Ordinary
shares in issue during the period. Diluted earnings per share is adjusted for the effects of Ordinary shares granted under the
share-based payment plans, which are held in the Employee Benefit Trust, unless it has the effect of increasing the profit or
decreasing the loss attributable to each share.
At 31 December 2025, the Group held 20,000,000 Ordinary shares (2024: 25,000,000 Ordinary shares) which were classified in the
balance sheet as Treasury shares. The Treasury shares have been excluded for the purposes of calculating the basic and
diluted earnings per share at 31 December 2025.
Basic and diluted earnings per share are calculated as follows:
Profit/(loss) |
Weighted average number of |
Earnings |
||||
after tax |
Ordinary shares |
per share |
||||
Year ended 31 December |
Year ended 31 December |
Year ended 31 December |
||||
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
|
$’000 |
$’000 |
million |
million |
$ |
$ |
|
Basic |
1,562 |
93,773 |
1,859.9 |
1,891.9 |
0.001 |
0.050 |
Dilutive potential of Ordinary shares granted under share- |
||||||
based incentive schemes |
– |
– |
24.2 |
24.3 |
– |
(0.001) |
Diluted |
1,562 |
93,773 |
1,884.1 |
1,916.2 |
0.001 |
0.049 |
The Company paid dividends of 0.616 pence per share during the year ended 31 December 2025 (2024: none).
Following the successful implementation of its capital discipline strategy, EnQuest remains committed to delivering sustainable
shareholder returns. Building on the inaugural dividend paid last year, the Board is pleased to propose a second final ordinary
dividend of 0.801 pence per share (equivalent to approximately $20.0 million). This proposed dividend is subject to approval by
shareholders at the Annual General Meeting scheduled for 22 May 2026, and accordingly has not been recognised as a liability
as at 31 December 2025. If approved, the dividend will be paid on 5 June 2026 to shareholders on the register at 8 May 2026, with
Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment charges.
Cost
Cost comprises the purchase price or cost relating to development, including the construction, installation and completion of
infrastructure facilities such as platforms, pipelines and development wells and any other costs directly attributable to making
that asset capable of operating as intended by management. The purchase price or construction cost is the aggregate amount
paid and the fair value of any other consideration given to acquire the asset.
The carrying amount of an item of property, plant and equipment is derecognised on disposal or when no future economic
benefits are expected from its use. The gain or loss arising from the derecognition of an item of property, plant and equipment is
included in the other operating income or expense line item in the Group income statement when the asset is derecognised.
Development assets
Expenditure relating to development of assets, including the construction, installation and completion of infrastructure facilities
such as platforms, pipelines and development wells, is capitalised within property, plant and equipment.
Carry arrangements
Where amounts are paid on behalf of a carried party, these are capitalised. Where there is an obligation to make payments on
behalf of a carried party and the timing and amount are uncertain, a provision is recognised. Where the payment is a fixed
monetary amount, a financial liability is recognised.
Borrowing costs directly attributable to the construction of qualifying assets, which are assets that necessarily take a substantial
period of time to prepare for their intended use, are capitalised during the development phase of the project until such time as
Oil and gas assets are depleted, on a field-by-field basis, using the unit of production method based on entitlement to proven
and probable reserves, taking account of estimated future development expenditure relating to those reserves. Changes in
factors which affect unit of production calculations are dealt with prospectively. Depletion of oil and gas assets is taken through
cost of sales.
Depreciation on other elements of property, plant and equipment is provided on a straight-line basis, and taken through
general and administration expenses, at the following rates:
Office furniture and equipment |
Five years |
Fixtures and fittings |
Ten years |
Right-of-use assets (i) |
Lease term |
(i)
Excludes Kraken and Vietnam FPSOs which are depleted using the unit of production method in accordance with the related oil and gas assets
Each asset’s estimated useful life, residual value and method of depreciation is reviewed and adjusted if appropriate at each
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
158–159
9. Property, plant and equipment continued
9. Property, plant and equipment continued
At each balance sheet date, discounted cash flow models comprising asset-by-asset life-of-field projections and risks specific
to assets, using Level 3 inputs (based on IFRS 13 fair value hierarchy), have been used to determine the recoverable amounts for
each CGU. The life of a field depends on the interaction of a number of variables; see note 2 for further details. Estimated
production volumes and cash flows up to the date of cessation of production on a field-by-field basis, including operating and
capital expenditure, are derived from the Group’s business plan. Oil price assumptions and discount rate assumptions used
were as disclosed in note 2. If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised immediately in
the Group income statement.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate
of its recoverable amount, but only so that the increased carrying amount does not exceed the carrying amount that would
have been determined had no impairment loss been recognised for the asset (or CGU) in prior years. A reversal of an
Office |
||||
furniture, |
Right-of- |
|||
Oil and gas |
fixtures and |
use assets |
||
assets |
fittings |
(note 23) |
Total |
|
$’000 |
$’000 |
$’000 |
$’000 |
|
Cost: |
||||
At 1 January 2024 |
9,243,807 |
68,578 |
904,994 |
10,217,379 |
Additions |
325,813 |
394 |
16,453 |
342,660 |
Change in decommissioning provision |
(741) |
– |
– |
(741) |
At 1 January 2025 |
9,568,879 |
68,972 |
921,447 |
10,559,298 |
Additions |
176,552 |
277 |
32,302 |
209,131 |
Acquisition (see note 30) |
24,716 |
– |
33,002 |
57,718 |
Disposals |
(1,672) |
– |
(37,881) |
(39,553) |
Change in decommissioning provision (note 22) |
77,862 |
– |
– |
77,862 |
At 31 December 2025 |
9,846,337 |
69,249 |
948,870 |
10,864,456 |
Accumulated depreciation, depletion and impairment: |
||||
At 1 January 2024 |
7,364,063 |
59,314 |
497,262 |
7,920,639 |
Charge for the year |
211,873 |
2,683 |
54,735 |
269,291 |
Net impairment charge/(reversal) for the year |
75,428 |
– |
(4,014) |
71,414 |
At 1 January 2025 |
7,651,364 |
61,997 |
547,983 |
8,261,344 |
Charge for the year |
211,616 |
1,628 |
59,184 |
272,428 |
Net impairment (reversal)/charge for the year |
23,019 |
– |
(28,838) |
(5,819) |
Disposal |
– |
– |
(33,628) |
(33,628) |
At 31 December 2025 |
7,885,999 |
63,625 |
544,701 |
8,494,325 |
Net carrying amount: |
||||
At 31 December 2025 |
1,960,338 |
5,624 |
404,169 |
2,370,131 |
At 31 December 2024 |
1,917,515 |
6,975 |
373,464 |
2,297,954 |
At 1 January 2024 |
1,879,744 |
9,264 |
407,732 |
2,296,740 |
The amount of borrowing costs capitalised during the year ended 31 December 2025 was nil (2024: nil), reflecting the short-term
nature of the Group’s capital expenditure programmes.
Impairments to the Group’s producing assets and reversals of impairments are set out in the table below:
Impairment |
Recoverable |
|||
reversal/(charge) |
amount (i) |
|||
Year ended |
Year ended |
|||
31 December |
31 December |
31 December |
31 December |
|
2025 |
2024 |
2025 |
2024 |
|
$’000 |
$’000 |
$’000 |
$’000 |
|
North Sea |
5,819 |
(71,414) |
1,100,312 |
1,172,487 |
Net pre‑tax impairment reversal/(charge) |
5,819 |
(71,414) |
||
(i)
Recoverable amount has been determined on a fair value less costs of disposal basis (see note 2 for further details of judgements, estimates and assumptions made
in relation to impairments). The amounts disclosed above are in respect of assets where an impairment (or reversal) has been recorded. Assets which did not have
any impairment or reversal are excluded from the amounts disclosed
For information on judgements, estimates and assumptions made in relation to impairments, along with sensitivity analysis, see
Use of judgements, estimates and assumptions: recoverability of asset carrying values within note 2.
The 2025 net impairment reversal of $5.8 million relates to producing assets in the UK North Sea (an impairment reversal of
$94.3 million at Kraken offset by charges of $33.5 million for GKA and Scolty/Crathes CGU, $43.5 million for Golden Eagle and
$11.5 million for Alba). Impairment reversals/charges were primarily driven by a combination of lower discount rate, changes in
production and cost profiles, including the impact of weaker USD, and lower near-term oil price assumptions.
The 2024 net impairment charge of $71.4 million related to producing assets in the UK North Sea (charges of $2.0 million for GKA
and Scolty/Crathes CGU, $62.5 million for Golden Eagle and $20.1 million for Alba offset by an impairment reversal of $13.2 million
at Kraken). Impairment charges/reversals were primarily driven by EPL revisions, lower near-term oil price assumptions and
Cost
Goodwill arising on a business combination is initially measured at cost, being the excess of the cost of the business
combination over the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity at the date of
acquisition. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group
reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the
procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess
of the fair value of net assets acquired over the aggregate consideration transferred, the gain is recognised in profit or loss.
Impairment of goodwill
Following initial recognition, goodwill is stated at cost less any accumulated impairment losses. In accordance with IAS 36
Impairment of Assets, goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances
For the purposes of impairment testing, goodwill acquired is allocated to the CGU (or group of CGUs) that is expected to benefit
from the synergies of the combination. Each unit or units to which goodwill is allocated represents the lowest level within the
Group at which the goodwill is monitored for internal management purposes. Impairment is determined by assessing the
recoverable amount of the CGU (or groups of CGUs) to which the goodwill relates. Where the recoverable amount of the CGU
(or groups of CGUs) is less than the carrying amount of the CGU (or group of CGUs) containing goodwill, an impairment loss is
recognised. Impairment losses relating to goodwill cannot be reversed in future periods. For information on significant estimates
and judgements made in relation to impairments, see Use of judgements, estimates and assumptions: recoverability of asset
carrying values within note 2.
A summary of goodwill is presented below:
2025 |
2024 |
|
$’000 |
$’000 |
|
Cost and net carrying amount |
||
At 1 January |
134,400 |
134,400 |
Acquisition (see note 30) |
5,110 |
– |
At 31 December |
139,510 |
134,400 |
The majority of the goodwill relates to the 75% acquisition of the Magnus oil field and associated interests. The remaining
opening balance relates to the acquisition of the GKA and Scolty Crathes fields. During 2025, the Group acquired Block 12W in
Vietnam (see note 30) resulting in goodwill recognised of $5.1 million.
Impairment testing of goodwill
Goodwill, which has been acquired through business combinations, has been allocated as appropriate to the UK North Sea
segment grouping of CGUs and the Vietnam CGU, and these are therefore the lowest level at which goodwill is reviewed. The UK
North Sea is a combination of oil and gas assets, as detailed within property, plant and equipment (note 9), while the Vietnam
CGU relates to the Block 12W asset.
The recoverable amounts of the segment and fields have been determined on a fair value less costs of disposal basis. See notes
2 and 9 for further details. An impairment charge of nil was taken in 2025 (2024: nil) based on a fair value less costs to dispose
Sensitivity to changes in assumptions
The Group’s recoverable value of assets is highly sensitive, inter alia, to oil price achieved and production volumes. A sensitivity
has been run on the oil price assumptions, with a 10% change being considered to be a reasonably possible change for the
purposes of sensitivity analysis (see note 2). A 10% reduction in oil price would result in an impairment charge of $70.7 million
(2024: 10% reduction would result in an impairment charge of $66.7 million). A 15% reduction in oil price would fully impair goodwill
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
160–161
Exploration and appraisal assets
Exploration and appraisal assets have indefinite useful lives and are accounted for using the successful efforts method of
accounting. Pre-licence costs are expensed in the period in which they are incurred. Expenditure directly associated with
exploration, evaluation or appraisal activities is initially capitalised as an intangible asset. Such costs include the costs of
acquiring an interest, appraisal well drilling costs, payments to contractors and an appropriate share of directly attributable
overheads incurred during the evaluation phase. For such appraisal activity, which may require drilling of further wells, costs
continue to be carried as an asset, whilst related hydrocarbons are considered capable of commercial development. Such
costs are subject to technical, commercial and management review to confirm the continued intent to develop, or otherwise
extract value. When this is no longer the case, the costs are written off as exploration and evaluation expenses in the Group
income statement. When exploration licences are relinquished without further development, any previous impairment loss is
reversed and the carrying costs are written off through the Group income statement. When assets are declared part of a
commercial development, related costs are transferred to property, plant and equipment. All intangible oil and gas assets are
During the year ended 31 December 2025, there was no impairment of historical exploration and appraisal expenditures (2024: nil).
Other intangibles
UK emissions allowances (‘UKAs’) purchased to settle the Group’s liability related to emissions are recognised on the balance
Exploration |
|||
and |
|||
appraisal |
UK emissions |
||
assets |
allowances |
Total |
|
$’000 |
$’000 |
$’000 |
|
Cost: |
|||
At 1 January 2024 |
127,476 |
876 |
128,352 |
Additions |
3,686 |
1,138 |
4,824 |
Write-off of unsuccessful exploration expenditure |
(183) |
– |
(183) |
Disposal |
(1,263) |
(876) |
(2,139) |
At 1 January 2025 |
129,716 |
1,138 |
130,854 |
Additions |
4,225 |
6,472 |
10,697 |
Write-off of relinquished licence |
(173) |
– |
(173) |
Disposal |
– |
(6,500) |
(6,500) |
At 31 December 2025 |
133,768 |
1,110 |
134,878 |
Accumulated impairment: |
|||
At 1 January 2024, 1 January 2025 and 31 December 2025 |
(109,153) |
– |
(109,153) |
Net carrying amount: |
|||
At 31 December 2025 |
24,615 |
1,110 |
25,725 |
At 31 December 2024 |
20,563 |
1,138 |
21,701 |
At 1 January 2024 |
18,323 |
876 |
19,199 |
Inventories of consumable well supplies and inventories of hydrocarbons are stated at the lower of cost and NRV, cost being
2025 |
2024 |
|
$’000 |
$’000 |
|
Hydrocarbon inventories |
8,487 |
22,544 |
Well supplies |
24,272 |
26,432 |
32,759 |
48,976 |
During 2025, a net charge of $16.9 million was recognised within cost of sales in the Group income statement relating to
inventory, reflecting additional sales related to Magnus hydrocarbon stock (2024: net gain of $6.9 million).
The inventory valuation at 31 December 2025 is stated net of a provision of $22.5 million (2024: $28.5 million) to write-down well
Cash and cash equivalents includes cash at bank, cash in hand, cash deposited in relation to decommissioning security
2025 |
2024 |
|
$’000 |
$’000 |
|
Available cash |
265,886 |
226,317 |
Restricted cash |
2,960 |
53,922 |
Cash and cash equivalents |
268,846 |
280,239 |
The carrying value of the Group’s cash and cash equivalents is considered to be a reasonable approximation to their fair value
due to their short-term maturities.
Restricted cash at 31 December 2025 includes a residual $1.2 million in accounts relating to 2025 decommissioning security
agreement obligations (31 December 2024: $53.4 million). The remaining $1.8 million of restricted cash relates to a Performance
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity. Financial instruments are recognised when the Group becomes a party to the contractual provisions of the
financial instrument.
Financial assets and financial liabilities are offset and the net amount is reported in the Group balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis.
Financial assets are classified, at initial recognition, as amortised cost, fair value through other comprehensive income (‘FVOCI’),
or fair value through profit or loss (‘FVPL’). The classification of financial assets at initial recognition depends on the financial
assets’ contractual cash flow characteristics and the Group’s business model for managing them. The Group does not currently
hold any financial assets at FVOCI, i.e. debt financial assets.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the
financial asset and substantially all the risks and rewards are transferred.
Financial assets at amortised cost
Trade receivables, other receivables and joint operation receivables are measured initially at fair value and subsequently
recorded at amortised cost, using the effective interest rate (‘EIR’) method, and are subject to impairment. Gains and losses
are recognised in profit or loss when the asset is derecognised, modified or impaired and EIR amortisation is included within
finance costs.
The Group measures financial assets at amortised cost if both of the following conditions are met:
•
The financial asset is held in a business model with the objective to hold financial assets in order to collect contractual cash
flows; and
•
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
162–163
14. Financial instruments and fair value measurement continued
14. Financial instruments and fair value measurement continued
The Group recognises a loss allowance for expected credit loss (‘ECL’), where material, for all financial assets held at the balance
sheet date. ECLs are based on the difference between the contractual cash flows due to the Group, and the discounted actual
cash flows that are expected to be received. Where there has been no significant increase in credit risk since initial recognition,
the loss allowance is equal to 12-month expected credit losses. Where the increase in credit risk is considered significant, lifetime
credit losses are provided. For trade receivables, a lifetime credit loss is recognised on initial recognition where material.
The provision rates are based on days past due for groupings of customer segments with similar loss patterns (i.e. by
geographical region, product type, customer type and rating) and are based on historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and the economic environment. The Group evaluates the concentration of risk
with respect to trade receivables and contract assets as low, as its customers are joint venture partners and there are no
indications of change in risk. Generally, trade receivables are written off when they become past due for more than one year
Financial liabilities are classified, at initial recognition, as amortised cost or at FVPL.
Financial liabilities are derecognised when they are extinguished, discharged, cancelled or they expire. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the
recognition of a new liability. The difference in the respective carrying amounts is recognised in the Group income statement.
Financial liabilities at amortised cost
Loans and borrowings, trade payables and other creditors are measured initially at fair value net of directly attributable
transaction costs and subsequently recorded at amortised cost, using the EIR method. Loans and borrowings are interest
bearing. Gains and losses are recognised in profit or loss when the liability is derecognised and EIR amortisation is included
The Group holds derivative financial instruments classified as held for trading, not designated as effective hedging instruments.
The derivative financial instruments include forward currency contracts and commodity contracts, to address the respective
risks; see note 27. The Group also enters into forward contracts for the purchase of UKAs to manage its exposure to carbon
emission credit prices. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when
the fair value is negative.
Financial instruments at FVPL are carried in the Group balance sheet at fair value, with net changes in fair value recognised in
the Group income statement.
Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at FVPL,
irrespective of the business model. All financial assets not classified as measured at amortised cost or FVOCI as described
above are measured at FVPL. Financial instruments with embedded derivatives are considered in their entirety when
determining whether their cash flows are solely payment of principal and interest.
The Group also holds contingent consideration (see note 21) and a listed equity investment (see note 18). The movements of both
The following table provides the fair values and fair value measurement hierarchy of the Group’s other financial assets and
liabilities:
Quoted |
||||||
prices in |
Significant |
Significant |
||||
active |
observable |
unobservable |
||||
Carrying |
markets |
inputs |
inputs |
|||
value |
Total |
(Level 1) |
(Level 2) |
(Level 3) |
||
31 December 2025 |
Notes |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
Financial assets measured at fair value: |
||||||
Derivative financial assets measured at FVPL |
||||||
Commodity contracts |
18(a) |
36,754 |
36,754 |
– |
36,754 |
– |
Forward foreign currency contracts |
18(a) |
932 |
932 |
– |
932 |
– |
Forward UKA contracts |
18(a) |
28,721 |
28,721 |
– |
28,721 |
– |
Other financial assets measured at FVPL |
– |
|||||
Quoted equity shares |
6 |
6 |
6 |
– |
– |
|
Total financial assets measured at fair value |
66,413 |
66,413 |
6 |
66,407 |
– |
|
Financial assets measured at amortised cost: |
||||||
Vendor financing facility |
18(f) |
43,896 |
43,896 |
– |
43,896 |
– |
Total financial assets measured at amortised cost (i) |
43,896 |
43,896 |
– |
43,896 |
– |
|
Liabilities measured at fair value: |
||||||
Derivative financial liabilities measured at FVPL |
||||||
Commodity contracts |
18(a) |
1,997 |
1,997 |
– |
1,997 |
– |
Forward UKA contracts |
18(a) |
8,394 |
8,394 |
– |
8,394 |
– |
Other financial liabilities measured at FVPL |
||||||
Contingent consideration |
21 |
84,620 |
84,620 |
– |
– |
84,620 |
Total liabilities measured at fair value |
95,011 |
95,011 |
– |
10,391 |
84,620 |
|
Liabilities measured at amortised cost |
||||||
Interest-bearing loans and borrowings (i) |
17 |
60,324 |
60,324 |
– |
60,324 |
– |
GBP retail bond 9.00% (ii) |
17 |
181,812 |
180,892 |
180,892 |
– |
– |
USD high yield bond 11.625% (ii) |
17 |
465,328 |
470,878 |
470,878 |
– |
– |
Total liabilities measured at amortised cost (iii) |
707,464 |
712,094 |
651,770 |
60,324 |
– |
(i)
Amortised cost is a reasonable approximation of the fair value, carrying value includes accrued interest
(ii)
Carrying value includes accrued interest and related fees
(iii)
Amounts included in the Total column, exclude related fees
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
164–165
14. Financial instruments and fair value measurement continued
Quoted |
||||||
prices in |
Significant |
Significant |
||||
active |
observable |
unobservable |
||||
Carrying |
markets |
inputs |
inputs |
|||
Value |
Total |
(Level 1) |
(Level 2) |
(Level 3) |
||
31 December 2024 |
Notes |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
Financial assets measured at fair value: |
||||||
Derivative financial assets measured at FVPL |
||||||
Gas commodity contracts |
18(a) |
69 |
69 |
– |
69 |
– |
Other financial assets measured at FVPL |
– |
|||||
Quoted equity shares |
6 |
6 |
6 |
– |
– |
|
Total financial assets measured at fair value |
75 |
75 |
6 |
69 |
– |
|
Financial assets measured at amortised cost: |
||||||
Vendor financing facility |
18(f) |
38,453 |
38,453 |
– |
38,453 |
– |
Total financial assets measured at amortised cost (i) |
38,453 |
38,453 |
– |
38,453 |
– |
|
Liabilities measured at fair value: |
||||||
Derivative financial liabilities measured at FVPL |
||||||
Commodity derivative contracts |
18(a) |
10,497 |
10,497 |
– |
10,497 |
– |
Forward foreign currency contracts |
18(a) |
2,354 |
2,354 |
– |
2,354 |
– |
Forward UKA contracts |
18(a) |
8,729 |
8,729 |
– |
8,729 |
– |
Other financial liabilities measured at FVPL |
||||||
Contingent consideration |
21 |
473,294 |
473,294 |
– |
– |
473,294 |
Total liabilities measured at fair value |
494,874 |
494,874 |
– |
21,580 |
473,294 |
|
Liabilities measured at amortised cost |
||||||
Interest-bearing loans and borrowings (i) |
17 |
33,972 |
33,972 |
– |
33,972 |
– |
GBP retail bond 9.00% (ii) |
17 |
169,371 |
161,461 |
161,461 |
– |
– |
USD high yield bond 11.625% (ii) |
17 |
461,514 |
466,102 |
466,102 |
– |
– |
Total liabilities measured at amortised cost (iii) |
664,857 |
661,535 |
627,563 |
33,972 |
– |
(i)
Amortised cost is a reasonable approximation of the fair value, carrying value includes accrued interest
(ii)
Carrying value includes accrued interest and related fees
(iii)
Amounts included in the Total column, exclude related fees
Fair value hierarchy
All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, based on
the lowest level input that is significant to the fair value measurement as a whole, as follows:
Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly
(i.e. prices) or indirectly (i.e. derived from prices) observable; and
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
Derivative financial instruments are valued by counterparties, with the valuations reviewed internally and corroborated with
readily available market data (Level 2). Contingent consideration is measured at FVPL using the Level 3 valuation processes,
details of which and a reconciliation of movements are disclosed in note 21. There have been no transfers between Level 1 and
Level 2 during the period (2024: no transfers).
For the financial assets and liabilities measured at amortised cost but for which fair value disclosures are required, the fair value
of the bonds classified as Level 1 was derived from quoted prices for that financial instrument, while interest-bearing loans and
borrowings and the vendor financing facility were calculated at amortised cost using the effective interest method to capture
2025 |
2024 |
|
$’000 |
$’000 |
|
Current |
||
Trade receivables |
15,357 |
20,151 |
Joint venture receivables |
104,608 |
106,963 |
Under-lift position |
18,073 |
16,806 |
VAT receivable |
12,377 |
7,574 |
Vietnam lease receivable from joint venture partners |
5,122 |
– |
Other receivables (i) |
55,015 |
25,989 |
Prepayments |
13,821 |
5,720 |
Accrued income |
21,096 |
47,768 |
Total current |
245,469 |
230,971 |
Non‑current |
||
Vietnam abandonment fund |
92,079 |
– |
Vietnam lease receivable from joint venture partners |
19,473 |
– |
Other receivables |
16,614 |
2,102 |
Total non‑current |
128,166 |
2,102 |
(i)
Predominantly relates to amounts charged to SVT owners and users
The carrying values of the Group’s trade, joint venture and other receivables as stated above are considered to be a reasonable
approximation to their fair value largely due to their short-term maturities. Under-lift is valued at the lower of cost or NRV at the
prevailing balance sheet date (note 4(b)).
Trade receivables are non-interest-bearing and are generally on 15 to 30-day terms. Joint venture receivables relate to amounts
billable to, or recoverable from, joint venture partners. Receivables are reported net of any ECL with no losses recognised as at
31 December 2025 or 2024.
Non-current receivables mainly comprise the Group’s share of cash contributions made into an abandonment fund which was
established to ensure that sufficient funds exist to meet future abandonment obligations on Block 12W in Vietnam. The funds are
maintained in a bank account by PetroVietnam and the joint venture partners retain the legal rights and obligations to all
monies contributed to the abandonment funds, pending commencement of abandonment operations.
The lease receivable relates to the Group’s lease of an FPSO used on Block 12W in Vietnam. The related liability is recorded on a
gross basis as EnQuest is the sole signatory to the lease, with joint venture partners providing a parent company guarantee with
respect to their share of the lease liability. The Group’s share of this liability is recorded as a right of use asset (see note 23) with
the remainder, representing the share of future payments to be reimbursed by the other partners in Block 12W in Vietnam,
recorded as an ‘other receivable’, split between current and non-current based on the expected timing of reimbursement by
the partners.
Other non-current receivables represents capitalised fees associated with the Group’s Reserve Based Lending facility disclosed
2025 |
2024 |
|
$’000 |
$’000 |
|
Current |
||
Trade payables |
124,806 |
138,822 |
Accrued expenses |
287,408 |
209,225 |
Over-lift position |
8,136 |
16,849 |
Joint venture creditors |
25,750 |
46,187 |
Other payables |
8,550 |
3,307 |
Total current |
454,650 |
414,390 |
The carrying value of the Group’s current trade and other payables as stated above is considered to be a reasonable
approximation to their fair value largely due to the short-term maturities. Certain trade and other payables will be settled in
currencies other than the reporting currency of the Group, mainly in Sterling. Trade payables are normally non-interest-bearing
and settled on terms of between ten and 30 days.
Accrued expenses include accruals for capital and operating expenditure in relation to the oil and gas assets and
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
166–167
2025 |
2024 |
|
$’000 |
$’000 |
|
Loans |
60,324 |
33,972 |
Bonds |
647,140 |
630,885 |
707,464 |
664,857 |
The Group’s borrowings are carried at amortised cost as follows:
2025 |
2024 |
|||||
Principal |
Fees |
Total |
Principal |
Fees |
Total |
|
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
|
SVT working capital facility |
36,331 |
– |
36,331 |
33,972 |
– |
33,972 |
Vendor loan facility |
22,096 |
– |
22,096 |
– |
– |
– |
USD high yield bond 11.625% |
465,000 |
(6,156) |
458,844 |
465,000 |
(10,661) |
454,339 |
GBP retail bond 9.00% (GBP 133.3 million) |
179,367 |
– |
179,367 |
167,101 |
– |
167,101 |
Accrued interest (i) |
10,826 |
– |
10,826 |
9,445 |
– |
9,445 |
Total borrowings |
713,620 |
(6,156) |
707,464 |
675,518 |
(10,661) |
664,857 |
Due within one year |
69,253 |
43,417 |
||||
Due after more than one year |
638,211 |
621,440 |
||||
Total borrowings |
707,464 |
664,857 |
||||
(i)
Accrued interest includes vendor loan facility interest accruals of $1.9 million (2024: $nil) and bond interest accruals of $8.9 million (2024: $9.4 million)
See liquidity risk – note 27 for the timing of cash outflows relating to loans and borrowings.
Reserve Based Lending facility (‘RBL’)
In November 2025, the Group agreed a new six-year Senior Secured Reserve Based Lending (‘RBL’) facility totalling $800.0 million
comprising a $400.0 million multi-currency revolving loan facility, $400.0 million multi-currency revolving letter of credit facility
and an accordion of up to $800.0 million which, although uncommitted, provides the potential to extend the secured revolving
loan facility and the revolving letter of credit facility by up to $400.0 million each. The maturity of the facility is December 2031.
Funds can only be drawn under the loan facility to a maximum amount of the lesser of: (i) the total commitments; and (ii) the
borrowing base amount. Interest accrues at 4.00%, plus a combination of an agreed credit adjustment spread and the Secured
Overnight Financing Rate (‘SOFR’). The facility replaced the Group’s previous reserve based lending facility, which was signed in
October 2022 and accrued interest at 4.50%, plus a combination of an agreed credit adjustment spread and the SOFR.
Fees associated with the new RBL of $20.4 million were capitalised within trade and other receivables (note 15) and are being
amortised over the period of the facility on a straight-line basis. The remaining unamortised fees relating to the previous RBL of
$2.4 million were expensed within finance costs.
At 31 December 2025, there were no loan drawdowns under the RBL (2024: $nil), with $400.0 million remaining available for
drawdown (2024: $176.4 million). At 31 December 2025, Letter of Credit utilisation was $381.5 million (2024: $54.1 million). The
increased utilisation of Letters of Credit reflected their use in providing security under the Group’s decommissioning security
obligations, replacing the Group’s prior period’s use of surety bonds and cash.
SVT working capital facility
In 2024, EnQuest extended the £42.0 million revolving loan facility with a joint operations partner to fund the short-term working
capital cash requirements of SVT and associated interests until April 2027. The facility is guaranteed by BP EOC Limited (joint
operations partner) until the earlier of: a) the date on which production from Magnus permanently ceases; or b) if the operating
agreements for both SVT and associated infrastructure are amended to allow for cash calling. The facility is able to be drawn
down against, in instalments, and accrues interest at 2.05% per annum plus GBP Sterling Over Night Index Average (‘SONIA’).
Vendor Loan facility
In August 2024, the Group entered into a deferred payment facility agreement with a third-party vendor providing capacity
based on certain qualifying invoices that EnQuest has paid up to an amount of £23.7 million, with interest payable monthly at a
rate of 9.50% per annum. At 31 December 2025, $22.1 million had been drawn down on the facility (2024: $nil).
US Dollar high yield bond 11.625%
In October 2022, the Group concluded an offer of $305.0 million for a US Dollar high yield bond. In October 2024, the Group
concluded a tap of an additional $160.0 million of the US Dollar high yield bond on the same terms and conditions as the existing
bond. The notes accrue a fixed coupon of 11.625% payable semi-annually in arrears with a maturity date of November 2027.
The above carrying value of the bond as at 31 December 2025 is $458.8 million (2024: $454.3 million). This includes bond principal
of $465.0 million (2024: $465.0 million) and unamortised issue premium on the tap of $1.0 million (2024: $1.4 million) less the
unamortised original issue discount of $1.5 million (2024: $2.4 million) and unamortised fees of $5.8 million (2024: $9.7 million). The
fair value of the US Dollar high yield bond is disclosed in note 14.
GBP retail bond 9.00%
On 27 April 2022, the Group issued a new 9.00% GBP retail bond following a successful partial exchange and cash offer. The
principal of the GBP retail bond 9.00% raised by the partial exchange and cash offer totalled £133.3 million. The notes accrue a
fixed coupon of 9.00% payable semi-annually in arrears and are due to mature in October 2027.
The above carrying value of the bond as at 31 December 2025 is $179.4 million (2024: $167.1 million). All fees associated with this
(a) Summary as at year end
2025 |
2024 |
|||
Assets |
Liabilities |
Assets |
Liabilities |
|
$’000 |
$’000 |
$’000 |
$’000 |
|
Fair value through profit or loss: |
||||
Derivative commodity contracts |
35,009 |
1,997 |
69 |
10,497 |
Forward foreign currency contracts |
932 |
– |
– |
2,354 |
Derivative UKA contracts |
23,550 |
8,394 |
– |
8,729 |
Total current |
59,491 |
10,391 |
69 |
21,580 |
Fair value through profit or loss: |
||||
Derivative commodity contracts |
1,745 |
– |
– |
– |
Derivative UKA contracts |
5,171 |
– |
– |
– |
Quoted equity shares |
6 |
– |
6 |
– |
Amortised cost: |
||||
Other receivables (Vendor financing facility) (notes 18(f), 24) |
43,896 |
– |
38,453 |
– |
Total non‑current |
50,818 |
– |
38,459 |
– |
Total other financial assets and liabilities |
110,309 |
10,391 |
38,528 |
21,580 |
(b) Income statement impact
The income/(expense) recognised for derivatives are as follows:
Revenue and other |
Cost of |
|||
operating income |
sales |
|||
Realised |
Unrealised |
Realised |
Unrealised |
|
Year ended 31 December 2025 |
$’000 |
$’000 |
$’000 |
$’000 |
Commodity options |
(6,561) |
7,766 |
– |
– |
Commodity swaps |
15,567 |
37,225 |
– |
– |
Commodity futures |
(262) |
187 |
– |
– |
Foreign exchange contracts |
– |
– |
20,766 |
3,286 |
UKA contracts |
– |
– |
(1,055) |
29,056 |
8,744 |
45,178 |
19,711 |
32,342 |
|
Revenue and other |
Cost of |
|||
operating income |
sales |
|||
Realised |
Unrealised |
Realised |
Unrealised |
|
Year ended 31 December 2024 |
$’000 |
$’000 |
$’000 |
$’000 |
Commodity options |
(19,899) |
10,617 |
– |
– |
Commodity swaps |
7,467 |
(7,340) |
– |
– |
Commodity futures |
(475) |
(187) |
– |
– |
Foreign exchange contracts |
– |
– |
2,859 |
(2,354) |
UKA contracts |
– |
– |
(7,594) |
(469) |
(12,907) |
3,090 |
(4,735) |
(2,823) |
|
(c) Commodity contracts
The Group uses derivative financial instruments to manage its exposure to the oil price, including put and call options, swap
contracts and futures.
For the year ended 31 December 2025, gains totalling $53.9 million (2024: losses of $9.8 million) were recognised in respect of
commodity contracts measured as FVPL. This included gains totalling $8.7 million (2024: losses of $12.9 million) realised on
contracts that matured during the year, and mark-to-market unrealised gains totalling $45.2 million (2024: gains of $3.1 million).
The mark-to-market value of the Group’s open commodity contracts as at 31 December 2025 was a net asset of $34.8 million
(2024: net liability of $10.4 million).
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
168–169
18. Other financial assets and financial liabilities continued
19. Share capital and reserves continued
(d) Foreign currency contracts
The Group enters into a variety of foreign currency contracts, primarily in relation to Sterling. During the year ended 31 December
2025, gains totalling $24.1 million (2025: gains of $0.5 million) were recognised in the Group income statement. This included
realised gains totalling $20.8 million (2024: gains of $2.9 million) on contracts that matured in the year.
The mark-to-market value of the Group’s open contracts as at 31 December 2025 was a net asset of $0.9 million (2024: net
liability of $2.4 million).
(e) UK emissions allowance forward contracts
The Group enters into forward contracts for the purchase of UKAs to manage its exposure to carbon emission credit prices. During
the year ended 31 December 2025, gains totalling $28.0 million (2024: losses of $8.1 million) were recognised in the Group income
statement. This included realised losses totalling $1.1 million (2024: losses of $7.6 million) on contracts that matured in the year.
The mark-to-market value of the Group’s open contracts as at 31 December 2025 was a net asset of $20.3 million (2024: net liability
of $8.7 million).
(f) Other receivables
Other |
Equity |
||
receivables |
shares |
Total |
|
$’000 |
$’000 |
$’000 |
|
At 1 January 2024 |
145,103 |
6 |
145,109 |
Interest |
3,263 |
– |
3,263 |
Repayments |
(107,518) |
– |
(107,518) |
Foreign Exchange |
(2,395) |
– |
(2,395) |
At 31 December 2024 |
38,453 |
6 |
38,459 |
Interest |
2,639 |
– |
2,639 |
Foreign Exchange |
2,804 |
– |
2,804 |
At 31 December 2025 |
43,896 |
6 |
43,902 |
Current |
– |
||
Non-current |
43,902 |
||
43,902 |
Other receivables relate to a vendor financing facility entered into with RockRose Energy Limited on 29 December 2023 following
the farm-down of a 15.0% share in the EnQuest Producer FPSO and capital items associated with the Bressay development.
$107.5 million was repaid in the first quarter of 2024 with the remainder repayable through future net cash flows from the Bressay
The balance classified as equity share capital includes the total net proceeds (both nominal value and share premium) on issue
of registered share capital of the parent company. Share issue costs associated with the issuance of new equity are treated as
a direct reduction of proceeds. The share capital comprises only one class of Ordinary share. Each Ordinary share carries an
Represents amounts transferred following purchase of the Company’s own shares out of distributable profits, with those shares
available for resale into the market, transfer to the Group’s Employee Benefit Trust (‘EBT’) where they can be used to satisfy
Capital redemption reserve
Represents the par value of shares cancelled following the purchase of the Company’s own shares out of distributable profits.
Retained earnings
Retained earnings contain the accumulated profits/(losses) of the Group.
Share-based payments reserve
Equity-settled share-based payment transactions are measured at the fair value of the services received, and the
corresponding increase in equity is recorded. EnQuest PLC shares held by the Group in the EBT are recognised at cost and are
deducted from the share-based payments reserve, as they are held to satisfy awards made under equity-settled share-based
payment transactions. Consideration received for the sale of such shares is also recognised in equity, with any difference
between the proceeds from the sale and the original cost being taken to reserves. No gain or loss is recognised in the Group
Capital |
||||||
Ordinary shares of |
Share |
Share |
Treasury |
redemption |
||
£0.05 each |
capital |
premium |
shares |
reserve |
Total |
|
Authorised, issued and fully paid |
Number |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
At 1 January 2025 |
1,885,029,503 |
131,508 |
260,546 |
(4,425) |
2,006 |
389,635 |
Shares transferred to EBT |
– |
– |
– |
885 |
– |
885 |
At 31 December 2025 |
1,885,029,503 |
131,508 |
260,546 |
(3,540) |
2,006 |
390,520 |
At 31 December 2025, 20,000,000 (2024: 25,000,000) Ordinary shares were held in Treasury for issue in due course to the
Company’s EBT to satisfy the anticipated future exercise of options and awards made to employees and Executive Directors of
EnQuest PLC pursuant to certain of the Company’s existing share plans. During the year, 5,000,000 shares were transferred to the
Company’s EBT.
At 31 December 2025, there were 3,948,076 shares held by the EBT (2024: 972,269) which are included within the share-based
payment reserve. The movement in the year was 2,975,807 shares used to satisfy awards made under the Company’s share-
Eligible employees (including Executive Directors) of the Group receive remuneration in the form of share-based payment
transactions, whereby employees render services in exchange for shares or rights over shares of EnQuest PLC.
Information on these plans for Executive Directors is shown in the Directors’ Remuneration Report on page 116.
The cost of these equity-settled transactions is measured by reference to the fair value at the date on which they are granted.
The fair value of awards is calculated in reference to the scheme rules at the market value, being the average middle market
quotation of a share for the three immediately preceding dealing days as derived from the Daily Official List of the London Stock
Exchange, provided such dealing days do not fall within any period when dealings in shares are prohibited because of any
The cost of equity-settled transactions is recognised over the vesting period in which the relevant employees become fully
entitled to the award. The cumulative expense recognised for equity-settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity
instruments that will ultimately vest. The Group income statement charge or credit for a period represents the movement in
cumulative expense recognised as at the beginning and end of that period.
In valuing the transactions, no account is taken of any service or performance conditions, other than conditions linked to the
price of the shares of EnQuest PLC (market conditions) or ‘non-vesting’ conditions, if applicable. No expense is recognised for
awards that do not ultimately vest, except for awards where vesting is conditional upon a market or non-vesting condition,
which are treated as vesting irrespective of whether or not the market or non-vesting condition is satisfied, provided that all
other performance conditions are satisfied. Equity awards cancelled are treated as vesting immediately on the date of
cancellation, and any expense not previously recognised for the award at that date is recognised in the Group income
statement.
The Group operates a number of equity-settled employee share plans under which share units are granted to the Group’s senior
leaders and certain other employees. These plans typically have a three-year performance or restricted period. Leaving
employment will normally preclude the conversion of units into shares, but special arrangements apply for participants that
The share-based payment (income)/expense recognised for each scheme was as follows:
2025 |
2024 |
|
$’000 |
$’000 |
|
Performance Share Plan |
(806) |
511 |
Other performance share plans |
(8) |
64 |
Sharesave Plan |
145 |
408 |
(669) |
983 |
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
170–171
20. Share-based payment plans continued
21. Contingent consideration continued
The following table shows the number of shares potentially issuable under the Group’s various equity-settled employee share
plans, including the number of options outstanding and the number of options exercisable at the end of each year.
2025 |
2024 |
|
Share plans |
Number |
Number |
Outstanding at 1 January |
88,617,683 |
87,367,455 |
Granted during the year |
27,138,555 |
35,353,664 |
Exercised during the year |
(1,493,821) |
(7,291,023) |
Forfeited during the year |
(17,282,431) |
(26,812,413) |
Outstanding at 31 December |
96,979,986 |
88,617,683 |
Exercisable at 31 December |
15,172,474 |
9,138,271 |
Within the Group’s equity-settled employee share plans detailed above, the Group operates an approved savings-related share
option scheme (the ‘Sharesave Plan’). The plan is based on eligible employees being granted options and their agreement to
opening a Sharesave account with a nominated savings carrier and to save over a specified period, either three or five years.
The right to exercise the option is at the employee’s discretion at the end of the period previously chosen, for a period of
six months.
The following table shows the number of shares potentially issuable under equity-settled employee share option plans,
including the number of options outstanding, the number of options exercisable at the end of each year and the corresponding
weighted average exercise prices.
2025 |
2024 |
|||
Weighted |
Weighted |
|||
average |
average |
|||
exercise price |
exercise price |
|||
Sharesave options |
Number |
$ |
Number |
$ |
Outstanding at 1 January |
9,956,017 |
0.15 |
18,658,144 |
0.16 |
Exercised during the year |
– |
– |
(5,478,693) |
0.13 |
Forfeited during the year |
(1,575,108) |
0.21 |
(3,223,434) |
0.15 |
Outstanding at 31 December |
8,380,909 |
0.15 |
9,956,017 |
0.15 |
Exercisable at 31 December |
155,925 |
0.28 |
323,886 |
0.24 |
When the consideration transferred by the Group in a business combination includes a contingent consideration arrangement,
the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred
in a business combination. Changes in fair value of the contingent consideration that qualify as measurement period
adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments
are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one
year from the acquisition date) about facts and circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement
period adjustments depends on how the contingent consideration is classified. Contingent consideration depicted below is
remeasured to fair value at subsequent reporting dates with changes in fair value recognised in profit or loss. Contingent
consideration that is classified as equity if any, is not remeasured at subsequent reporting dates and its subsequent settlement
is accounted for within equity.
Contingent consideration is discounted at a risk-free rate combined with a risk premium, calculated in alignment with IFRS 13
and the unwinding of the discount is presented as part of the overall fair value charge within other expenses/income.
Any contingent consideration included in the consideration payable for an asset acquisition is recorded at fair value at the date
of acquisition and included in the initial measurement of cost.
Settlement of contingent consideration recorded at fair value through profit or loss is recorded as investing outflows in the cash
flow statement to the extent cumulative amounts paid do not exceed the amount recognised at the date of acquisition, with
any excess recorded as an operating cash outflow. Settlement of contingent consideration relating to an asset acquisition is
Magnus |
|||
decommissioning- |
|||
Magnus 75% |
linked liability |
Total |
|
$’000 |
$’000 |
$’000 |
|
At 31 December 2024 |
451,333 |
21,961 |
473,294 |
Unwinding of discount (see note 4(d)) |
51,002 |
2,645 |
53,647 |
Other change in fair value (see note 4(d)) |
(442,335) |
1,543 |
(440,792) |
Utilisation |
– |
(1,529) |
(1,529) |
At 31 December 2025 |
60,000 |
24,620 |
84,620 |
Classified as: |
|||
Current |
60,000 |
318 |
60,318 |
Non-current |
– |
24,302 |
24,302 |
60,000 |
24,620 |
84,620 |
75% Magnus acquisition contingent consideration
On 1 December 2018, EnQuest completed the acquisition of the additional 75% interest in the Magnus oil field (‘Magnus’) and
associated interests (collectively the ‘Transaction assets’) which was part funded through a profit share arrangement with bp
whereby EnQuest and bp share the net cash flow generated by the 75% interest on a 50:50 basis, subject to a cap of $1.0 billion
received by bp. This contingent consideration is a financial liability classified as measured at FVPL.
In February 2026, an agreement was concluded with bp for EnQuest to settle the profit share arrangement for $60.0 million, with
payment made the same month. As the agreement was substantially agreed at 31 December 2025, this value has been used to
fair value the contingent consideration which resulted in a decrease in fair value (excluding the impact of unwind of discount) of
$442.3 million (2024: decrease of $43.4 million). The decrease in 2024 reflected a reduction in the Group’s near-term oil price
assumptions and changes in the assets cost and production profile. The overall fair value accounting effect relating to the
contingent consideration, including the unwinding of discount, totalled income of $391.3 million (2024: charge of $11.8 million)
which was recognised in the Group income statement. Within the statement of cash flows, the profit share element of the
repayment is disclosed separately under investing activities. There were no profit share payments during the year (2024: $48.5
million). At 31 December 2025, the contingent consideration for Magnus was $60.0 million (31 December 2024: $451.3 million).
Magnus decommissioning-linked contingent consideration
As part of the Magnus and associated interests acquisition, bp retained the decommissioning liability in respect of the existing
wells and infrastructure and EnQuest agreed to pay additional consideration in relation to the management of the physical
decommissioning costs of Magnus. At 31 December 2025, the amount due to bp calculated on an after-tax basis by reference to
30% of bp’s decommissioning costs on Magnus was $24.6 million (2024: $22.0 million). Any reasonably possible change in
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
172–173
22. Provisions continued
Provision for future decommissioning costs is made in full when the Group has an obligation: to dismantle and remove a facility
or an item of plant; to restore the site on which it is located; and when a reasonable estimate of that liability can be made. The
Group’s provision primarily relates to the future decommissioning of production facilities and pipelines.
A decommissioning asset and liability are recognised within property, plant and equipment and provisions, respectively, at the
present value of the estimated future decommissioning costs. The decommissioning asset is amortised over the life of the
underlying asset on a unit of production basis over proven and probable reserves, included within depletion in the Group
income statement. Any change in the present value of estimated future decommissioning costs is reflected as an adjustment to
the provision and the oil and gas asset for producing assets. For assets that have ceased production, the change in estimate is
reflected as an adjustment to the provision and the Group income statement, via other income or expense. The unwinding of the
decommissioning liability is included under finance costs in the Group income statement.
These provisions have been created based on internal and third-party estimates. Assumptions based on the current economic
environment have been made which management believes are a reasonable basis upon which to estimate the future liability.
These estimates are reviewed regularly to take into account any material changes to the assumptions. However, actual
decommissioning costs will ultimately depend upon future market prices for the necessary decommissioning works required,
which will reflect market conditions at the relevant time. Furthermore, the timing of decommissioning liabilities is likely to depend
on the dates when the fields cease to be economically viable. This in turn depends on future oil prices, which are inherently
Other
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is probable
that an outflow of resources will be required to settle the obligation; and a reliable estimate can be made of the amount of
the obligation.
Thistle |
||||
Decommissioning |
decommissioning |
Other |
||
provision |
provision |
provisions |
Total |
|
$’000 |
$’000 |
$’000 |
$’000 |
|
At 31 December 2024 |
741,565 |
18,348 |
6,193 |
766,106 |
Acquisition (see note 30) |
89,052 |
– |
– |
89,052 |
Additions during the year (i) |
46,721 |
– |
461 |
47,182 |
Changes in estimates (i) |
40,868 |
4,772 |
(5,083) |
40,557 |
Unwinding of discount |
35,912 |
755 |
– |
36,667 |
Utilisation (ii) |
(38,486) |
(8,589) |
(481) |
(47,556) |
Foreign exchange |
– |
– |
28 |
28 |
At 31 December 2025 |
915,632 |
15,286 |
1,118 |
932,036 |
Classified as: |
||||
Current |
48,853 |
4,915 |
314 |
54,082 |
Non-current |
866,779 |
10,371 |
804 |
877,954 |
915,632 |
15,286 |
1,118 |
932,036 |
(i)
Includes $77.9 million related to producing assets disclosed in note 9 and $9.7 million relating to assets in decommissioning disclosed in note 4(d)
(ii)
Utilisation differs to amounts paid in the cash flow statement due to movements in accruals recognised within trade and other payables
Decommissioning provision
The Group’s total provision represents the present value of decommissioning costs which are expected to be incurred up to
2050, assuming no further development of the Group’s assets. The Group’s decommissioning provision has increased by
$174.0 million in the period. This primarily reflects the discounted decommissioning liability acquired as part of the Vietnam asset
acquisition of $89.1 million (which is largely pre-funded as set out below), additional liability recognised in relation to Seligi
Non-Associated Gas rights in Malaysia of $41.5 million and higher cost estimates of $40.9 million, predominantly due to a weaker
US Dollar, offset partly by the ongoing decommissioning programmes utilisation of $38.5 million.
At 31 December 2025, an estimated $364.3 million is expected to be utilised between one and five years (2024: $281.1 million),
$373.1 million within six to ten years (2024: $280.0 million), and the remainder in later periods. For sensitivity analysis see Use of
judgements, estimates and assumptions within note 2.
The Vietnam PSC requires the expected decommissioning liability to be pre-funded via a quarterly cash payment into an
abandonment cess fund. The balance of amounts previously deposited into the cess fund is held in escrow to be drawn against
when abandonment takes place. As at 31 December 2025, EnQuest’s share of the cess fund was $92.1 million and is disclosed in
non-current trade and other receivables (note 15).
The Group uses Letters of Credit, surety bonds and cash deposits to provide security for its decommissioning obligations.
Following the agreement of a new RBL facility in November 2025, the Group utilised Letters of Credit totalling $381.5 million to
provide security for its decommissioning obligations at 31 December 2025 (2024: surety bonds totalling $277.0 million and cash
deposits of $53.4 million).
Thistle decommissioning provision
In 2018, EnQuest exercised the option to receive $50.0 million from bp in exchange for undertaking the management of the
physical decommissioning activities for Thistle and Deveron and making payments by reference to 7.5% of bp’s share of
decommissioning costs of the Thistle and Deveron fields, with the liability recognised within provisions. At 31 December 2025, the
amount due to bp by reference to 7.5% of bp’s decommissioning costs on Thistle and Deveron was $15.3 million (2024: $18.3
million), with the reduction mainly reflecting the utilisation in the period. Change in estimates of $4.8 million are included within
As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement date.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted by using the rate implicit in the lease, or, if that rate cannot be readily determined, the Group uses its incremental
borrowing rate.
The incremental borrowing rate is the rate that the Group would have to pay for a loan of a similar term, and with similar security,
to obtain an asset of similar value. The incremental borrowing rate is determined based on a series of inputs including: the term,
Lease payments included in the measurement of the lease liability comprise:
•
fixed lease payments (including in-substance fixed payments), less any lease incentives;
•
variable lease payments that depend on an index or rate, initially measured using the index or rate at the
commencement date;
•
the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
•
payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.
The lease liability is subsequently recorded at amortised cost, using the effective interest rate method. The liability is
remeasured when there is a change in future lease payments arising from a change in an index or rate or if the Group changes
its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in
this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if
the carrying amount of the right-of-use asset has been reduced to zero. The Group did not make any such adjustments during
the periods presented.
The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease
incentives received. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying
asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects
to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The
depreciation starts at the commencement date of the lease.
The Group applies the short-term lease recognition exemption to those leases that have a lease term of 12 months or less from
the commencement date. It also applies the low-value assets recognition exemption to leases of assets below £5,000. Lease
payments on short-term leases and leases of low-value assets are recognised as an expense on a straight-line basis over the
lease term.
The Group applies IAS 36 Impairment of Assets to determine whether a right-of-use asset is impaired and accounts for any
identified impairment loss as described in the ‘property, plant and equipment’ policy (see note 9).
Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the
right-of-use asset. The related payments are recognised as an expense in the period in which the event or condition that
triggers those payments occurs and are included within ‘cost of sales’ or ‘general and administration expenses’ in the Group
income statement.
For leases within joint ventures, the Group assesses on a lease-by-lease basis the facts and circumstances. Where all parties to
a joint operation jointly have the right to control the use of the identified asset and all parties have a legal obligation to make
lease payments to the lessor, the Group’s share of the right-of-use asset and its share of the lease liability will be recognised on
the Group balance sheet. This may arise in cases where the lease is signed by all parties to the joint operation or the joint
operation partners are named within the lease. However, in cases where EnQuest is the sole signatory and the only party with
the legal obligation to make lease payments to the lessor but the joint venture partners provide guarantees in relation to their
share of the liability, the full lease liability will be recognised, along with the Group’s share of the right-of-use asset and a
receivable balance representing amounts owed by joint venture partners. In cases where EnQuest is the only party with the legal
obligation to make lease payments to the lessor, the full lease liability and right-of-use asset will be recognised on the Group
balance sheet. This may be the case if, for example, EnQuest, as operator of the joint operation, is the sole signatory to the lease.
If the underlying asset is used for the performance of the joint operation agreement, EnQuest will recharge the associated costs
in line with the joint operating agreement.
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
174–175
23. Leases continued
23. Leases continued
As a lessor
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.
Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is
classified as a finance lease. All other leases are classified as operating leases.
When the Group is an intermediate lessor, it accounts for the head-lease and the sub-lease as two separate contracts. The
sub-lease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head-lease.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs
incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised
on a straight-line basis over the lease term.
Amounts due from lessees under finance leases are recognised as receivables at the amount of the Group’s net investment in
the leases. Finance lease income is allocated to reporting periods so as to reflect a constant periodic rate of return on the
Group’s net investment outstanding in respect of the leases.
When a contract includes lease and non-lease components, the Group applies IFRS 15 to allocate the consideration under the
Right-of-use assets and lease liabilities
Set out below are the carrying amounts of the Group’s right-of-use assets and lease liabilities and the movements during
the period:
Right-of-use |
Lease |
|
assets |
liabilities |
|
$’000 |
$’000 |
|
As at 31 December 2023 |
407,732 |
422,174 |
Additions in the period |
16,453 |
16,453 |
Depreciation expense |
(54,735) |
– |
Impairment reversal |
4,014 |
– |
Interest expense |
– |
27,673 |
Payments |
– |
(130,065) |
Foreign exchange movements |
– |
(980) |
As at 31 December 2024 |
373,464 |
335,255 |
Acquisition (see note 30) |
33,002 |
60,681 |
Additions in the period (see note 9) |
32,302 |
32,302 |
Depreciation expense (see note 9) |
(59,184) |
– |
Impairment reversal (see note 9) |
28,838 |
– |
Interest expense |
– |
25,100 |
Payments |
– |
(83,061) |
Foreign exchange movements |
– |
5,818 |
Disposal |
(4,253) |
(4,005) |
As at 31 December 2025 |
404,169 |
372,090 |
Current |
86,323 |
|
Non-current |
285,767 |
|
372,090 |
The carrying value of the right-of-use assets include $373.9 million (2024: $340.9 million) of oil and gas assets and $30.3 million
(2024: $32.6 million) of buildings.
The Group leases assets, including the Kraken and Vietnam FPSOs, property, and oil and gas vessels, with a weighted average
lease term of three years. The maturity analysis of lease liabilities is disclosed in note 27.
Amounts recognised in profit or loss
Year ended |
Year ended |
|
31 December |
31 December |
|
2025 |
2024 |
|
$’000 |
$’000 |
|
Depreciation expense of right-of-use assets |
59,184 |
54,735 |
Impairment reversal of right-of-use assets |
(28,838) |
(4,014) |
Interest expense on lease liabilities |
25,100 |
27,673 |
Rent expense – short-term leases |
9,018 |
13,860 |
Rent expense – leases of low-value assets |
297 |
33 |
Total amounts recognised in profit or loss |
64,761 |
92,287 |
Amounts recognised in statement of cash flows
Year ended |
Year ended |
|
31 December |
31 December |
|
2025 |
2024 |
|
$’000 |
$’000 |
|
Total cash outflow for leases |
83,061 |
130,065 |
Leases as lessor
The Group sub-leases part of Annan House, the Aberdeen office. The sub-lease is classified as an operating lease, as all the risks
and rewards incidental to the ownership of the right-of-use asset are not all substantially transferred to the lessee. Rental
income recognised by the Group during 2025 was $1.9 million (2024: $2.2 million).
The following table sets out a maturity analysis of the lessees lease payments to EnQuest as lessor, showing the undiscounted
lease payments to be received after the reporting date:
2025 |
2024 |
|
$’000 |
$’000 |
|
Less than one year |
1,291 |
2,029 |
One to two years |
1,293 |
858 |
Two to three years |
1,310 |
860 |
Three to four years |
1,317 |
875 |
Four to five years |
821 |
882 |
More than five years |
1,326 |
1,856 |
Total undiscounted lease payments |
7,358 |
7,360 |
Income is not recognised in the income statement until it is highly probable that the conditions attached to the income will
Year ended |
Year ended |
|
31 December |
31 December |
|
2025 |
2024 |
|
$’000 |
$’000 |
|
Deferred income |
138,095 |
138,095 |
In December 2023 a farm-down of an equity interest in the EnQuest Producer FPSO and certain capital spares related to the
Bressay development was completed and cash received of $141.3 million. The same amount was lent back to the acquirer in
December 2023 as vendor financing (see note 18(f)). Proceeds from the farm-down are reported within deferred income, as
these are contingent upon the Bressay development project achieving regulatory approval. Both parties are committed to
delivering the development, however should the project not achieve regulatory approval there remains the option to deploy the
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
176–177
27. Risk management and financial instruments continued
Capital commitments
At 31 December 2025, the Group had commitments for future capital expenditure amounting to $48.4 million (2024: $13.3 million).
The increase primarily relates to commitments for the development of the non-associated gas resources in the PM8/Seligi PSC
contract area under the Seligi 1b gas agreement. The key remaining components of this relate to minimum work commitments
in Indonesia and Brunei. Where the commitment relates to a joint venture, the amount represents the Group’s net share of the
commitment. Where the Group is not the operator of the joint venture then the amounts are based on the Group’s net share of
committed future work programmes.
Other commitments
In the normal course of business, the Group will obtain surety bonds, Letters of Credit and guarantees. At 31 December 2025, the
Group utilised Letters of Credit totalling $381.5 million under its new RBL facility to provide security for its decommissioning
Contingencies
The Group becomes involved from time to time in various claims and lawsuits arising in the ordinary course of its business. For
example, in 2025, the NSTA engaged with EnQuest with regards to the timing/scheduling of certain plug and abandon
obligations, which remain under discussion. Regardless, the Group is not, nor has been during the past 12 months, involved in
any governmental, legal or arbitration proceedings which, either individually or in the aggregate, have had, or are expected to
have, a material adverse effect on the Group balance sheet or profitability. Nor, so far as the Group is aware, are any such
proceedings pending or threatened.
The Group financial statements include the financial statements of EnQuest PLC and its subsidiaries. A list of the Group’s
principal subsidiaries is contained in note 28 to these Group financial statements.
Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on
consolidation and are not disclosed in this note.
All sales to and purchases from related parties are made at normal market prices and the pricing policies and terms of these
transactions are approved by the Group’s management. With the exception of the transactions disclosed below, there have
been no transactions with related parties who are not members of the Group during the year ended 31 December 2025
(2024: none).
The following table details remuneration of key management personnel of the Group. Key management personnel comprise
Executive and Non-Executive Directors of the Company and the Executive Committee.
2025 |
2024 |
|
$’000 |
$’000 |
|
Short-term employee benefits |
5,206 |
5,138 |
Share-based payments |
30 |
124 |
Post-employment pension benefits |
278 |
226 |
Termination payments |
133 |
947 |
5,647 |
6,435 |
Risk management objectives and policies
The Group’s principal financial assets and liabilities comprise trade and other receivables, cash and cash equivalents, interest-
bearing loans, borrowings and leases, derivative financial instruments and trade and other payables. The main purpose of the
financial instruments is to manage cash flow and to provide liquidity for organic and inorganic growth initiatives.
The Group’s activities expose it to various financial risks particularly associated with fluctuations in oil price, foreign currency risk,
liquidity risk and credit risk. The Group is also exposed to interest rate risks related to SOFR on cash balances and the RBL. As the
RBL was undrawn at 31 December 2025, no sensitivities have been provided. Management reviews and agrees policies for
managing each of these risks, which are summarised below. Also presented below is a sensitivity analysis to indicate sensitivity
to changes in market variables on the Group’s financial instruments and to show the impact on profit and shareholders’ equity,
where applicable. The sensitivity has been prepared for periods ended 31 December 2025 and 2024, using the amounts of debt
and other financial assets and liabilities held at those reporting dates.
Commodity price risk – oil prices
The Group is exposed to the impact of changes in Brent oil prices on its revenues and profits generated from sales of crude oil.
The Group’s policy is to have the ability to hedge oil prices up to a maximum of 75% of the next 12 months’ production on a rolling
annual basis, up to 60% in the following 12-month period and 50% in the subsequent 12-month period. On a rolling quarterly
basis, under the RBL facility, the Group is required to hedge production based on the proportion of the loan facility utilised. Where
the relevant amounts utilised are 10% or less of the amounts available, the Group is required to hedge a minimum of 10% of
volumes of net entitlement production expected in the next 12 months and the following 12 months. Where the relevant amounts
utilised are more than 10% but less than 50% of the amounts available, the Group is required to hedge a minimum of 30% of
volumes of net entitlement production expected in the next 12 months and a minimum of 15% of volumes of net entitlement
production expected in the following 12 months. Where the relevant amounts utilised are 50% or more of the amounts available,
the Group is required to hedge a minimum of 45% of volumes of net entitlement production expected in the next 12 months and
a minimum of 30% of volumes of net entitlement production expected in the following 12 months.
Details of the commodity derivative contracts entered into during and open at the end of 2025 are disclosed in note 18. As of
31 December 2025, the Group held financial instruments (options and swaps) related to crude oil that covered 3.4 MMbbls of
2026 production and 0.9 MMbbls of 2027 production. The instruments have an effective average floor price of around $68.3/bbl
in 2026 and $63.5/bbl in 2027. The Group utilises multiple benchmarks when hedging production to achieve optimal results for
the Group. No derivatives were designated in hedging relationships at 31 December 2025.
The following table summarises the impact on the Group’s pre-tax profit of a reasonably possible change in the Brent oil price
on the fair value of derivative financial instruments, with all other variables held constant. The impact in equity is the same as
the impact on profit before tax.
Pre-tax profit |
||
+$10/bbl |
-$10/bbl |
|
increase |
decrease |
|
$’000 |
$’000 |
|
31 December 2025 |
(42,600) |
42,900 |
31 December 2024 |
(47,600) |
47,200 |
Foreign exchange risk
The Group is exposed to foreign exchange risk arising from movements in currency exchange rates. Such exposure arises from
sales or purchases in currencies other than the Group’s functional currency, the 9.00% retail bond, the vendor financing facility
and any UK EPL cash tax payments which are denominated in Sterling. To mitigate the risks of large fluctuations in the currency
markets, the hedging policy agreed by the Board allows for up to 70% of the non-US Dollar portion of the Group’s annual capital
budget and operating expenditure to be hedged. For specific contracted capital expenditure projects, up to 100% can be
hedged. Approximately 17% (2024: 12%) of the Group’s sales and 98% (2024: 97%) of costs (including operating and capital
expenditure and general and administration costs) are denominated in currencies other than the functional currency.
The Group also enters into foreign currency swap contracts from time to time to manage short-term exposures. The following
tables summarise the Group’s financial assets and liabilities exposure to foreign currency.
GBP |
MYR |
Other |
Total |
|
Year ended 31 December 2025 |
$’000 |
$’000 |
$’000 |
$’000 |
Total financial assets |
357,349 |
30,762 |
12,015 |
400,126 |
Total financial liabilities |
783,464 |
28,336 |
13,364 |
825,164 |
GBP |
MYR |
Other |
Total |
|
Year ended 31 December 2024 |
$’000 |
$’000 |
$’000 |
$’000 |
Total financial assets |
396,168 |
22,570 |
3,024 |
421,762 |
Total financial liabilities |
714,626 |
21,731 |
3,801 |
740,158 |
The following table summarises the sensitivity to a reasonably possible change in the US Dollar to Sterling foreign exchange rate,
with all other variables held constant, of the Group’s profit before tax due to changes in the carrying value of monetary assets
and liabilities at the reporting date. The impact in equity is the same as the impact on profit before tax. The Group’s exposure to
foreign currency changes for all other currencies is not material:
Pre-tax profit |
||
10% rate |
10% rate |
|
increase |
decrease |
|
$’000 |
$’000 |
|
31 December 2025 |
(22,189) |
22,189 |
31 December 2024 |
(28,263) |
28,263 |
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
178–179
27. Risk management and financial instruments continued
27. Risk management and financial instruments continued
Credit risk is managed on a Group basis. Credit risk in financial instruments arises from cash and cash equivalents and
derivative financial instruments where the Group’s exposure arises from default of the counterparty, with a maximum exposure
equal to the carrying amount of these instruments. For banks and financial institutions only those rated with an A-/A3 credit
rating or better are accepted. Cash balances can be invested in short-term bank deposits and AAA-rated liquidity funds,
subject to Board-approved limits and with a view to minimising counterparty credit risks.
In addition, there are credit risks of commercial counterparties, including exposures in respect of outstanding receivables. The
Group trades only with recognised international oil and gas companies, commodity traders and shipping companies and at
31 December 2025, there were no trade receivables past due but not impaired (2024: nil) and no joint venture receivables past
due but not impaired (2024: nil). Receivable balances are monitored on an ongoing basis with appropriate follow-up action
taken where necessary. Any impact from ECL is disclosed in note 15.
At 31 December 2025, the Group had one customer accounting for 65% of outstanding trade receivables (2024: two customers,
91%) and four joint venture partners accounting for over 75% of outstanding joint venture receivables (2024: four partners,
The Group monitors its risk of a shortage of funds by reviewing its cash flow requirements on a regular basis relative to its
existing bank facilities and the maturity profile of its borrowings. Specifically, the Group’s policy is to ensure that sufficient
liquidity or committed facilities exist within the Group to meet its operational funding requirements and to ensure the Group can
service its debt and adhere to its financial covenants. At 31 December 2025, $409.8 million (2024: $194.3 million) was available for
drawdown under the Group’s facilities (see note 17).
The following tables detail the maturity profiles of the Group’s non-derivative financial liabilities, including projected interest
thereon. The amounts in these tables are different from the balance sheet as the table is prepared on a contractual
undiscounted cash flow basis and includes future interest payments.
By reference to the conditions existing at the reporting period end, the maturity analysis of the contingent consideration is
disclosed below. All of the Group’s liabilities, except for the RBL, are unsecured.
On demand |
Up to 1 year |
1 to 2 years |
2 to 5 years |
Over 5 years |
Total |
|
Year ended 31 December 2025 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
Loans |
– |
60,888 |
– |
– |
– |
60,888 |
Bonds |
– |
69,945 |
714,312 |
– |
– |
784,257 |
Contingent consideration |
– |
60,335 |
6,681 |
1,382 |
65,571 |
133,969 |
Obligations under lease liabilities |
– |
97,363 |
231,189 |
59,547 |
26,328 |
414,427 |
Trade and other payables |
– |
446,527 |
– |
– |
– |
446,527 |
– |
735,058 |
952,182 |
60,929 |
91,899 |
1,840,068 |
On demand |
Up to 1 year |
1 to 2 years |
2 to 5 years |
Over 5 years |
Total |
|
Year ended 31 December 2024 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
Loans |
– |
34,168 |
– |
– |
– |
34,168 |
Bonds |
– |
69,095 |
69,095 |
701,197 |
– |
839,387 |
Contingent consideration |
– |
20,675 |
64,877 |
265,854 |
425,027 |
776,433 |
Obligations under lease liabilities |
– |
66,092 |
71,600 |
222,093 |
31,696 |
391,481 |
Trade and other payables |
– |
397,543 |
– |
– |
– |
397,543 |
– |
587,573 |
205,572 |
1,189,144 |
456,723 |
2,439,012 |
The following tables detail the Group’s expected maturity of payables for its derivative financial instruments. The amounts in
these tables are different from the balance sheet as the table is prepared on a contractual undiscounted cash flow basis. When
the amount receivable or payable is not fixed, the amount disclosed has been determined by reference to a projected forward
curve at the reporting date.
Less than 3 |
3 to 12 |
|||||
On demand |
months |
months |
1 to 2 years |
Over 2 years |
Total |
|
Year ended 31 December 2025 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
Commodity derivative contracts |
– |
2,563 |
66 |
– |
– |
2,629 |
Other derivative contracts |
– |
43,411 |
7,485 |
22,015 |
– |
72,911 |
– |
45,974 |
7,551 |
22,015 |
– |
75,540 |
Less than 3 |
3 to 12 |
|||||
On demand |
months |
months |
1 to 2 years |
Over 2 years |
Total |
|
Year ended 31 December 2024 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
Commodity derivative contracts |
– |
546 |
8,908 |
999 |
– |
10,453 |
Foreign exchange derivative contracts |
– |
1,105 |
1,249 |
– |
– |
2,354 |
Other derivative contracts |
– |
23,902 |
3,802 |
1,928 |
– |
29,632 |
– |
25,553 |
13,959 |
2,927 |
– |
42,439 |
The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 17, cash and cash
equivalents and equity attributable to the equity holders of the parent company, comprising issued capital, reserves and
retained earnings as in the Group statement of changes in equity.
The primary objective of the Group’s capital management is to optimise the return on investment, by managing its capital
structure to achieve capital efficiency whilst also maintaining flexibility for downside protection and growth initiatives. The Group
regularly monitors the capital requirements of the business over the short, medium and long term, in order to enable it to
foresee when additional capital will be required.
The Group has approval from the Board to hedge external risks, see Commodity price risk: oil prices and foreign exchange risk.
This is designed to reduce the risk of adverse movements in exchange rates and market prices eroding the return on the Group’s
projects and operations.
The Board regularly reassesses the existing dividend policy to ensure that shareholder value is maximised. Any future
shareholder distributions are expected to depend on the earnings and financial condition of the Company and such other
factors as the Board considers appropriate.
The Group monitors capital using the gearing ratio and return on shareholders’ equity as follows. Further information relating to
the movement year-on-year is provided within the relevant notes and within the Financial review (pages 37 to 41).
2025 |
2024 |
|
$’000 |
$’000 |
|
Loans, borrowings and bond (i) (A) (see note 17) |
702,794 |
666,073 |
Cash and cash equivalents (see note 13) |
268,846 |
(280,239) |
EnQuest net debt (B) (ii) |
433,948 |
385,834 |
Equity attributable to EnQuest PLC shareholders (C) |
528,059 |
542,466 |
Profit/(loss) for the year attributable to EnQuest PLC shareholders (D) |
1,562 |
93,773 |
Adjusted EBITDA (F) (ii) |
503,823 |
673,919 |
Gross gearing ratio (A/C) |
1.3 |
1.2 |
Net gearing ratio (B/C) |
0.8 |
0.7 |
EnQuest net debt/adjusted EBITDA (B/F) (ii) |
0.9 |
0.6 |
Shareholders’ return on investment (D/C) |
0.3% |
17.3% |
(i)
Principal amounts drawn, excludes netting off of fees and accrued interest (see note 17)
(ii)
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
180–181
At 31 December 2025, EnQuest PLC had investments in the following subsidiaries:
Proportion of |
|||
nominal value |
|||
of issued |
|||
Ordinary |
|||
shares |
|||
Country of |
controlled by |
||
Name of company |
Principal activity |
incorporation |
the Group |
Intermediate holding company and provision of Group |
|||
EnQuest Britain Limited |
manpower and contracting/procurement services |
England |
100% |
EnQuest Heather Limited (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
EnQuest ENS Limited (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
EnQuest Heather Leasing Limited (i) |
Dormant |
England |
100% |
EQ Petroleum Sabah Limited (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
EnQuest Dons Leasing Limited (i) |
Leasing |
England |
100% |
EnQuest Energy Limited (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
EnQuest Production Limited (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
EnQuest Global Limited |
Intermediate holding company |
England |
100% |
EnQuest NWO Limited (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
EQ Petroleum Production Malaysia Limited (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
NSIP (GKA) Limited 1 |
Dormant |
Scotland |
100% |
Provision of Group manpower and contracting/ |
|||
EnQuest Global Services Limited (i)2 |
procurement services for the international business |
Jersey |
100% |
EnQuest Marketing and Trading Limited |
Marketing and trading of crude oil |
England |
100% |
EnQuest Petroleum Developments |
|||
Malaysia SDN. BHD (i)3 |
Exploration, extraction and production of hydrocarbons |
Malaysia |
100% |
EnQuest Advance Holdings Limited (i) |
Intermediate holding company |
England |
100% |
EnQuest Advance Limited (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
EnQuest Progress Limited (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
North Sea (Golden Eagle) Resources Ltd (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
Assessment and development of new energy and |
|||
Veri Energy (CCS) Limited (i) |
decarbonisation opportunities |
England |
100% |
Assessment and development of new energy and |
|||
Veri Energy (Hydrogen) Limited (i) |
decarbonisation opportunities |
England |
100% |
Veri Energy Holdings Limited |
Intermediate holding company |
England |
100% |
Assessment and development of new energy and |
|||
Veri Energy Limited (i) |
decarbonisation opportunities |
England |
100% |
British Virgin |
|||
Premier Oil (Vietnam) Limited (i)4 |
Exploration, extraction and production of hydrocarbons |
Islands |
100% |
Premier Oil Vietnam Offshore B.V (i)5 |
Exploration, extraction and production of hydrocarbons |
Netherlands |
100% |
EnQuest EP Gaea Limited (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
EnQuest EP Gaea II Limited (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
EnQuest EP BV Limited (i) |
Exploration, extraction and production of hydrocarbons |
England |
100% |
(i)
Held by subsidiary undertaking
The Group has five branches outside the UK (all held by subsidiary undertakings): EnQuest Global Services Limited (Dubai),
EnQuest Global Services Limited (Bahrain), EnQuest Petroleum Production Malaysia Limited (Malaysia), Premier Oil Vietnam
Offshore B.V (Vietnam) and EnQuest EP BV Limited (Brunei).
In January 2026, EnQuest Group Holdings Limited was incorporated in England and Wales as a holding company.
Other than those listed below, all entities have a registered office address as Charles House, 2nd Floor, 5-11 Regent Street, London,
SW1Y 4LR United Kingdom.
1
Annan House, Palmerston Road, Aberdeen, Scotland, AB11 5QP, United Kingdom
2
Ground Floor, Colomberie House, St Helier, JE4 0RX, Jersey
3
c/o TMF, 10th Floor, Menara Hap Seng, No. 1 & 3, Jalan P. Ramlee 50250 Kuala Lumpur, Malaysia
4
PO Box 3140, Road Town, Tortola, VG1110, British Virgin Islands
5
Cash generated from operations
Year ended |
Year ended |
||
31 December |
31 December |
||
2025 |
2024 |
||
Notes |
$’000 |
$’000 |
|
Profit/(loss) before tax |
493,427 |
166,614 |
|
Depreciation |
4(c) |
5,129 |
6,040 |
Depletion |
4(b) |
267,299 |
263,252 |
Exploration and appraisal expense |
11 |
173 |
183 |
Net impairment (reversal)/charge to oil and gas assets |
9 |
(5,819) |
71,414 |
Net disposal/(write-back) of inventory |
2,800 |
(5,539) |
|
Share-based payment (credit)/charge |
4(e) |
(669) |
983 |
Change in Magnus related contingent consideration |
21 |
(387,145) |
15,904 |
Change in provisions |
22 |
46,544 |
39,116 |
Other non-cash UKA losses |
4(b) |
11,490 |
1,335 |
Unrealised (gain)/loss on commodity financial instruments |
4(a) |
(45,178) |
(3,090) |
Unrealised (gain)/loss on other financial instruments |
4(b) |
(32,342) |
2,823 |
Unrealised exchange loss/(gain) |
21,973 |
(8,714) |
|
Net finance expense (i) |
118,700 |
113,711 |
|
Operating cash flow before working capital changes |
496,382 |
664,032 |
|
Decrease/(increase) in trade and other receivables |
38,656 |
(4,561) |
|
Decrease/(increase) in inventories |
12,366 |
(5,786) |
|
(Decrease)/increase in trade and other payables |
(49,585) |
32,261 |
|
Cash generated from operations |
497,819 |
685,946 |
(i)
Excludes unwind of discount on provisions (see note 5)
Changes in liabilities arising from financing activities
Loans and |
Lease |
|||
borrowings |
Bonds |
liabilities |
Total |
|
$’000 |
$’000 |
$’000 |
$’000 |
|
At 1 January 2024 |
(311,210) |
(471,019) |
(422,174) (1,204,403) |
|
Cash movements: |
||||
Repayments of loans and borrowings |
312,304 |
– |
– |
312,304 |
Proceeds from loans and borrowings |
(26,928) |
(160,000) |
– |
(186,928) |
Payment of lease liabilities |
– |
– |
130,065 |
130,065 |
Cash interest paid in year |
18,524 |
52,494 |
– |
71,018 |
Non‑cash movements: |
||||
Additions |
– |
3,362 |
(16,453) |
(13,091) |
Interest/finance charge payable |
(18,524) |
(54,971) |
(27,673) |
(101,168) |
Fee amortisation |
(5,036) |
(3,493) |
– |
(8,529) |
Foreign exchange and other non-cash movements |
(3,102) |
2,742 |
980 |
620 |
At 31 December 2024 |
(33,972) |
(630,885) |
(335,255) |
(1,000,112) |
Cash movements: |
||||
Repayments of loans and borrowings (i) |
196,451 |
– |
– |
196,451 |
Proceeds from loans and borrowings (ii) |
(217,420) |
– |
– |
(217,420) |
Payment of lease liabilities |
– |
– |
83,061 |
83,061 |
Cash interest paid in year (iii) |
4,130 |
69,884 |
– |
74,014 |
Non‑cash movements: |
||||
Additions |
20,448 |
– |
(32,302) |
(11,854) |
Disposals |
– |
– |
4,005 |
4,005 |
Acquired (see note 30) |
– |
– |
(60,681) |
(60,681) |
Interest/finance charge payable |
(6,027) |
(69,269) |
(25,100) |
(100,396) |
Fee amortisation |
(2,927) |
(4,505) |
– |
(7,432) |
Foreign exchange and other non-cash movements |
(21,007) |
(12,365) |
(5,818) |
(39,190) |
At 31 December 2025 |
(60,324) |
(647,140) |
(372,090) (1,079,554) |
|
(i)
Repayments of loans and borrowings include $120.0 million repaid under the previous RBL facility, $70.0 million under the new RBL facility, and $6.5 million repaid under
the SVT working capital facility (note 17). In the Group Cash Flow Statement, the repayment of loans and borrowings line does not include the balance of the previous
RBL facility at the date of refinancing of $50.0 million. This was fully repaid utilising the proceeds from the new facility and as such is netted against the proceeds of the
new RBL facility in the Group Cash Flow Statement on the proceeds from loans and borrowings line
(ii)
Proceeds from loans and borrowings include $120.0 million drawdown under the previous RBL facility prior to refinancing and $70.0 million under new RBL facility on
refinancing, $6.7 million drawdowns under the SVT working capital facility and $20.7 million under the vendor loan facility. In the Group Cash Flow Statement, proceeds
from loans and borrowings of $152.4 million include amounts outlined in the table above less the previous RBL facility balance of $50.0 million and associated new
arrangement fees of $15.0 million. See note 17 for further details
(iii)
The cash flow statement includes interest on decommissioning bonds, Letters of Credit and the EPL
Financial Statements
Notes to the Group Financial Statements
continued
For the year ended 31 December 2025
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
182–183
29. Cash flow information continued
30. Business combination continued
Reconciliation of carrying value
Loans |
Bonds |
Lease liabilities |
||
(see note 17) |
(see note 17) |
(see note 23) |
Total |
|
$’000 |
$’000 |
$’000 |
$’000 |
|
Principal |
(33,972) |
(632,101) |
(335,255) |
(1,001,328) |
Unamortised fees |
– |
10,661 |
– |
10,661 |
Accrued interest |
– |
(9,445) |
– |
(9,445) |
At 31 December 2024 |
(33,972) |
(630,885) |
(335,255) |
(1,000,112) |
Principal |
(58,427) |
(644,367) |
(372,090) |
(1,074,884) |
Unamortised fees |
– |
6,156 |
– |
6,156 |
Accrued interest |
(1,897) |
(8,929) |
– |
(10,826) |
At 31 December 2025 |
(60,324) |
(647,140) |
(372,090) |
(1,079,554) |
Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-
controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling
interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related
costs are expensed as incurred and included in administrative expenses. The Group determines that it has acquired a business
when the acquired set of activities and assets include an input and a substantive process that together significantly contribute
to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue producing
outputs, and the inputs acquired include an organised workforce with the necessary skills, knowledge, or experience to perform
that process or it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or
Acquisition of Block 12W Vietnam
The Group acquired a 53.125% interest in the Chim Sao and Dua fields (‘Block 12W’) in Vietnam from Harbour Energy on 9 July 2025
through acquisition of 100% of the share capital of two entities Premier Oil (Vietnam) Limited and Premier Oil Vietnam Offshore BV.
The Group acquired this business as it represents a key step in delivering the Group’s diversified growth across South East Asia
and aligns with its strategic aim to expand its footprint by investing in fast-payback assets with low capex and reduced carbon
intensity. The Group acquired control through payment of cash.
The Transaction assets constitute a business and the acquisition has been accounted for using the acquisition method, in
accordance with IFRS 3 Business Combinations. The fair values and resulting goodwill are provisional and will be finalised in
EnQuest’s half year 2026 financial statements.
The provisional fair values of the net identifiable assets as at the date of acquisition are as follows:
Fair value |
||
recognised on |
||
acquisition |
||
Notes |
$’000 |
|
Non‑current assets |
||
Property, plant and equipment |
9 |
24,716 |
Right-of-use assets |
9 |
33,002 |
Other receivables (i) |
15 |
111,787 |
Current assets |
||
Trade and other receivables |
32,541 |
|
Taxation receivable |
41 |
|
Cash and cash equivalents |
5,850 |
|
Total assets |
207,937 |
|
Non‑current liabilities |
||
Provisions (ii) |
22 |
89,052 |
Lease creditor (iii) |
23 |
44,845 |
Deferred tax |
6 |
6,063 |
Current liabilities |
||
Trade and other payables |
30,546 |
|
Lease creditor (iii) |
23 |
15,836 |
Current tax liabilities |
1,002 |
|
Total liabilities |
187,344 |
|
Total identifiable net assets at fair value |
20,593 |
|
Goodwill arising on acquisition |
5,110 |
|
Purchase consideration transferred: |
||
Cash transferred |
25,703 |
|
Total consideration |
25,703 |
(i)
Represents EnQuest’s share of a central abandonment fund of $91.2 million which will be used to pay for future abandonment of the Vietnam asset and amounts owed
by JV Partners of $20.6 million, with a further $7.1 million shown within current receivables in respect of the lease liability associated with the FPSO
(ii)
Represents a decommissioning liability
(iii)
Includes a lease liability predominantly in relation to the FPSO
$’000 |
|
Analysis of cash flows on acquisition |
|
Total consideration |
25,703 |
Net cash acquired with the subsidiaries |
(5,850) |
Transaction costs of the acquisition |
425 |
Net cash flow on acquisition |
20,278 |
The goodwill has arisen primarily due to the requirement to recognise deferred tax liabilities for the difference between the
assigned fair values and the tax bases of the acquired assets and liabilities assumed in a business combination. The
assessment of fair values of oil and gas assets acquired is based on cash flows after tax. Nevertheless, in accordance with IAS 12
Income Taxes, a provision is made for deferred tax corresponding to the tax rate multiplied by the difference between the
acquisition date fair value and the tax base. The offsetting entry to this deferred tax is goodwill. The acquisition date fair value of
the trade receivables amounts to $0.3 million which is expected to be collected within contractual terms.
From the date of acquisition, the Transaction assets have contributed $52.8 million of revenue and $8.0 million to the profit
before tax from continuing operations of the Group. If the combination had taken place at the beginning of the year, Group
revenue from continuing operations would have been $1,162.9 million and the Group profit before tax from continuing operations
On 26 February 2026, EnQuest paid bp $60.0 million as final settlement of the 75% profit share contingent consideration liability,
securing 100.0% of future Magnus cash flows.
In February, EnQuest was notified by the Vietnam Ministry of Industry and Trade that it had been successful in extending the
Block 12W PSC by four years to July 2034, on its existing terms. The PSC extension provides EnQuest and its joint venture partners
with the opportunity to access upside across Block 12W and progress discovered resources into reserves, with prospectivity
spread across three gas discoveries and several additional targets.
In February, EnQuest received a Letter of Award (‘LOA’) for a participating interest in the Cendramas PSC by Petronas. The terms
of the LOA, subject to the finalisation and signing of the Joint Operating Agreement and the Cendramas PSC, are effective from
23 September 2026.
The Group continues to monitor the situation in the Middle East following the start of the conflict in February. At the date of this
Financial Statements
Statement of Directors’ Responsibilities
for the Parent Company Financial Statements
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
Financial Statements
184–185
(Registered number: 07140891)
At 31 December 2025
2025 | 2024 | ||
Notes | $’000 | $’000 | |
Fixed assets | |||
Investments | 3 | 373,610 | 372,243 |
Current assets | |||
Trade and other debtors | |||
– due within one year | 4 | 795,197 | 811,983 |
– due after one year | 4 | 43,896 | 38,453 |
Cash at bank and in hand | 18 | 265 | |
839,111 | 850,701 | ||
Trade and other creditors: amounts falling due within one year | 6 | (3,514) | (3,328) |
Net current assets | 835,597 | 847,373 | |
Total assets less current liabilities | 1,209,207 | 1,219,616 | |
Trade and other creditors: amounts falling due after one year | 7 | (647,140) | (630,885) |
Net assets | 562,067 | 588,731 | |
Share capital and reserves | |||
Share capital and premium | 8 | 392,054 | 392,054 |
Treasury shares | (3,540) | (4,425) | |
Other reserve | 40,143 | 40,143 | |
Share-based payment reserve | 12,395 | 13,949 | |
Capital redemption reserve | 2,006 | 2,006 | |
Profit and loss account | 119,009 | 145,004 | |
Shareholders’ funds | 562,067 | 588,731 |
The Directors are responsible for preparing the Parent Company financial statements in accordance with applicable law
and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have
elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice
(United Kingdom Accounting Standards and applicable law) including FRS 101 ‘Reduced Disclosure Framework’. Under company
law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the
state of affairs of the Company and of the profit or loss of the Company for that period. In preparing the parent company
financial statements, the Directors are required to:
•
Select suitable accounting policies and then apply them consistently;
•
Make judgements and estimates that are reasonable and prudent;
•
State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and
explained in the financial statements; and
•
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to
ensure that the Company financial statements comply with the Companies Act 2006. They are also responsible for safeguarding
the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
The Directors are responsible for the maintenance and integrity of the Company’s specific corporate and financial information
included on the Group’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
The attached notes 1 to 13 form part of these Company financial statements.
The Company reported a loss for the financial year ended 31 December 2025 of $10.7 million (2024: profit of $215.5 million).
There were no other recognised gains or losses in the period (2024: nil).
The financial statements were approved by the Board of Directors and authorised for issue on 24 March 2026 and signed on its
behalf by:
Jonathan Copus
Chief Financial Officer
Financial Statements
EnQuest PLC Annual Report and Accounts 2025
Strategic Report
Corporate Governance
Financial Statements
Financial Statements
Notes to the Company Financial Statements
For the year ended 31 December 2025
186–187
For the year ended 31 December 2025
Share | Share- | |||||||
capital and | based | Capital | ||||||
share | Treasury | Other | payments | redemption | Profit and | |||
premium | shares | reserve | reserve | reserve | loss account | Total | ||
Notes | $’000 | $’000 | $’000 | $’000 | $’000 | $’000 | $’000 | |
At 31 December 2023 | 393,831 | – | 40,143 | 13,195 | – | (65,894) | 381,275 | |
Profit for the year | – | – | – | – | – | 215,491 | 215,491 | |
Total comprehensive income for the year | – | – | – | – | – | 215,491 | 215,491 | |
Issue of shares to Employee Benefit Trust | 229 | – | – | (229) | – | – | – | |
Repurchase and cancellation of shares | (2,006) | (4,425) | – | – | 2,006 | (4,593) | (9,018) | |
Share-based payment charge | – | – | – | 983 | – | – | 983 | |
At 31 December 2024 | 392,054 | (4,425) | 40,143 | 13,949 | 2,006 | 145,004 | 588,731 | |
Loss for the year | – | – | – | – | – | (10,695) | (10,695) | |
Total comprehensive expense for the year | – | – | – | – | – | (10,695) | (10,695) | |
Shares transferred to Employee Benefit | ||||||||
Trust | 8 | – | 885 | – | (885) | – | – | – |
Dividend paid | 12 | – | – | – | – | – | (15,300) | (15,300) |
Share-based payment credit | – | – | – | (669) | – | – | (669) | |
At 31 December 2025 | 392,054 | (3,540) | 40,143 | 12,395 | 2,006 | 119,009 | 562,067 |
1. Corporate information
The separate parent company financial statements of EnQuest PLC (‘EnQuest’ or the ‘Company’) for the year ended 31 December
2025 were authorised for issue in accordance with a resolution of the Directors on 24 March 2026.
EnQuest PLC is a public limited company incorporated in the United Kingdom under the Companies Act and registered in
England and Wales and is the holding and ultimate controlling company for the Group of EnQuest subsidiaries (together the
‘Group’). The Company address can be found on the inside back cover of the Group Annual Report and Accounts.
2. Summary of significant accounting policies
Basis of preparation
These separate financial statements have been prepared in accordance with Financial Reporting Standard 101, ‘Reduced
Disclosure Framework’ (‘FRS 101’) and the Companies Act 2006. The Company meets the definition of a qualifying entity under FRS
100, ‘Application of Financial Reporting Requirements’ as issued by the Financial Reporting Council. The Company has previously
notified its shareholders in writing about, and they do not object to, the use of the disclosure exemptions used by the Company
in these financial statements.
These financial statements are prepared under the historical cost basis, except for the fair value remeasurement of certain
financial instruments as set out in the accounting policies below. The functional and presentation currency of the separate
financial statements is US Dollars and all values in the separate financial statements are rounded to the nearest thousand
($’000) except where otherwise stated.
As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in
relation to share-based payments, financial instruments, fair value measurement, capital management, presentation of
comparative information in respect of certain assets, presentation of a cash flow statement, standards not yet effective,
impairment of assets and related party transactions. Where relevant, equivalent disclosures have been given in the Group
accounts. For new standards and interpretations see note 2 of the Group financial statements. No material impact was
recognised upon application in the Company financial statements.
The Directors have taken advantage of the exemption available under Section 408 of the Companies Act 2006 and not
presented an income statement or a statement of comprehensive income for the parent company. The parent company’s
accounts present information about it as an individual undertaking and not about its Group.
Going concern
The Directors’ assessment of going concern concludes that the use of the going concern basis is appropriate and the Directors
have a reasonable expectation that the Group, and therefore the Company, will be able to continue in operation and meet its
commitments as they fall due over the going concern period. See note 2 of the Group financial statements for further details.
The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended
31 December 2025.
Critical accounting estimates and judgements
The management of the Group has to make estimates and judgements when preparing the financial statements of the Group.
Uncertainties in the estimates and judgements could have an impact on the carrying amount of assets and liabilities and the
Group’s results. The most important estimates in relation thereto are:
Key sources of estimation uncertainty: Impairment/reversal of impairment of investments in subsidiaries
Determination of whether investments have suffered any impairment requires an estimation of the assets’ recoverable value.
The recoverable value is based on the discounted cash flows expected to arise from the subsidiaries’ oil and gas assets, using
asset-by-asset life-of-field projections as part of the Group’s assessment for the impairment of the oil and gas assets. The
Company’s investment in subsidiaries is tested for impairment annually (see note 3) for recoverable values and sensitivities. See
Group critical accounting estimates and judgements in note 2 for recoverability of oil and gas subsidiary asset carrying values.
No critical accounting judgements have been identified in the preparation of these financial statements.
Foreign currencies
Transactions in currencies other than the Company’s functional currency are recorded at the prevailing rate of exchange on the
date of the transaction. At the year end, monetary assets and liabilities denominated in foreign currencies are retranslated at
the rates of exchange prevailing at the balance sheet date. Non-monetary assets and liabilities that are measured at historical
cost in a foreign currency are translated using the rate of exchange as at the dates of the initial transactions. Non-monetary
assets and liabilities measured at fair value in a foreign currency are translated using the rate of exchange at the date the fair
value was determined. All foreign exchange gains and losses are taken to the statement of comprehensive income.
3. Investments
Accounting policy
Investments in subsidiaries are accounted for at cost less any provision for impairment.
(a) Summary
2025
$’000
2024
$’000
Subsidiary undertakings
373,604
372,237
Other financial assets at FVPL
6
6
Total
373,610
372,243
(b) Subsidiary undertakings
$’000
Cost
At 1 January 2024
1,402,196
Additions
983
At 31 December 2024
1,403,179
Additions
(669)
At 31 December 2025
1,402,510
Provision for impairment
At 1 January 2024
1,102,432
Impairment reversal for the year
(71,490)
At 31 December 2024
1,030,942
Impairment reversal for the year
(2,036)
At 31 December 2025
1,028,906
Net book value
At 31 December 2025
373,604
At 31 December 2024
372,237
At 31 December 2023
299,764
The Company has recognised an impairment reversal of its investment in subsidiary undertakings of $2.0 million during the year
(2024: $71.5 million reversal). The impairment reversal for the year ended 31 December 2025 is primarily driven by profits
generated in the underlying subsidiaries.
The Group’s recoverable value of its investments is highly sensitive, inter alia, to oil price achieved. A sensitivity has been run on
the oil price assumption, with a 10.0% change being considered to be a reasonable possible change for the purposes of
sensitivity analysis (see note 2 of the Group financial statements). A 10.0% decrease in oil price would have decreased the net
book values by $220.5 million.
The oil price sensitivity analysis does not, however, represent management’s best estimate of any impairments that might be
recognised as they do not fully incorporate consequential changes that may arise, such as reductions in costs and changes to
business plans, phasing of development, levels of reserves and resources, and production volumes. As the extent of a price
reduction increases, the more likely it is that costs would decrease across the industry. The oil price sensitivity analysis therefore
does not reflect a linear relationship between price and value that can be extrapolated.
Details of the Company’s subsidiaries at 31 December 2025 are provided in note 28 of the Group financial statements.
(c) Other financial assets at fair value through profit or loss
The interest in other listed investments at the end of the year is part of the Group’s investment in the Ordinary share capital of
Ascent Resources plc, which is incorporated in the United Kingdom and registered in England and Wales.
4. Trade and other debtors
Financial assets
Financial assets are classified at initial recognition as amortised cost, fair value through other comprehensive income (‘FVOCI’),
or fair value through profit or loss (‘FVPL’). The classification of financial assets at initial recognition depends on the financial
asset’s contractual cash flow characteristics and the Group’s business model for managing them. The Company does not
currently hold any financial assets at FVOCI, i.e. debt financial assets.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the
financial asset and substantially all the risks and rewards are transferred.
Financial assets at amortised cost
Trade debtors, other debtors and joint operation debtors are measured initially at fair value and subsequently recorded at
amortised cost, using the effective interest rate (‘EIR’) method, and are subject to impairment. Gains and losses are recognised
in profit or loss when the asset is derecognised, modified or impaired and EIR amortisation is included within finance costs.
The Company measures financial assets at amortised cost if both of the following conditions are met:
•
The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual
cash flows; and
•
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Prepayments, which are not financial assets, are measured at historical cost.
Impairment of financial assets
The Company recognises a loss allowance for expected credit loss (‘ECL’), where material, for all financial assets held at the
balance sheet date. The measurement of expected credit losses is a function of the probability of default, loss given default
and exposure at default. ECLs are based on the difference between the contractual cash flows due to the Company, and the
discounted actual cash flows that are expected to be received. Where there has been no significant increase in credit risk since
initial recognition, the loss allowance is equal to 12-month expected credit losses. Where the increase in credit risk is considered
significant, lifetime credit losses are provided. For trade receivables, a lifetime credit loss is recognised on initial recognition
where material.
The Company evaluates the concentration of risk with respect to intercompany debtors as low, as its customers are
intercompany ventures, and has considered the risk relating to the probability of default on loans that are repayable on
demand. The Company has evaluated an expected credit loss of $nil for the year ended 31 December 2025, as required by
IFRS 9’s expected credit loss model (2024: $nil).
2025
$’000
2024
$’000
Due within one year
Prepayments
9
13
Amounts due from subsidiaries
795,188
811,970
795,197
811,983
Due after one year
Other debtors – vendor financing facility
43,896
38,453
43,896
38,453
Included within the amounts due from Group undertakings are balances of $468.3million (2024: $669.8 million) on which interest
was charged at between 9.0%-14.11% (2024: 9.0%-13.36%). All other balances are interest free.
Amounts owed by Group undertakings are unsecured and repayable on demand, however, the Company does not anticipate
needing to recall any funds in the next 12 months.
A vendor financing facility was entered into with RockRose Energy Limited on 29 December 2023 following the farm-down of a
15.0% share in the EnQuest Producer FPSO and capital items associated with the Bressay development. This is repayable through
future net cash flows from the Bressay field. Interest on the outstanding amount accrues at 2.5% plus the Bank of England’s
Base Rate.
Financial Statements
Notes to the Company Financial Statements
continued
For the year ended 31 December 2025
188–189
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
5. Deferred tax
The Company has unused UK mainstream corporation tax losses of $54.3 million (2024: $54.3 million) for which no deferred tax
asset has been recognised at the balance sheet date due to the uncertainty of recovery of these losses.
6. Trade and other creditors: amounts falling due within one year
Accounting policy
Financial liabilities
Financial liabilities are classified at initial recognition as amortised cost or at FVPL.
Financial liabilities are derecognised when they are extinguished, discharged, cancelled or they expire. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the
recognition of a new liability. The difference in the respective carrying amounts is recognised in the Group income statement.
Financial liabilities at amortised cost
Loans and borrowings, trade creditors and other creditors are measured initially at fair value net of directly attributable
transaction costs and subsequently recorded at amortised cost, using the EIR method. Loans and borrowings are interest
bearing. Gains and losses are recognised in profit or loss when the liability is derecognised and EIR amortisation is included
within finance costs.
2025
$’000
2024
$’000
Amounts due to subsidiaries
3,511
3,086
Accruals
3
242
3,514
3,328
All amounts owed to Group undertakings are unsecured, interest free and repayable on demand.
7. Trade and other creditors: amounts falling due after one year
2025
$’000
2024
$’000
Bonds
647,140
630,885
At 31 December 2025, bonds comprise a high yield bond and a retail bond. The carrying value of the high yield bond is
$458.8 million (2024: $454.3 million). The notes accrue a fixed coupon of 11.625% bi-annually with a maturity date of November
2027. The retail bond has a carrying value of $179.4 million (2024: $167.1 million) and pays a coupon of 9.00% bi-annually with a
maturity date of October 2027. Included within the bond value is accrued bond interest of $8.9 million (2024: $9.4 million).
See note 17 of the Group financial statements. The maturity profile of the bonds is disclosed in note 27 of the Group
financial statements.
8. Share capital and share premium
The movement in the share capital and share premium of the Company was as follows:
Authorised, issued and fully paid
Ordinary shares of
£0.05 each
Number
Share
capital
$’000
Share
premium
$’000
Total
$’000
At 1 January 2025 and 31 December 2025
1,885,029,503
131,508
260,546
392,054
At 31 December 2025, there were 3,948,076 shares held by the EBT (2024: 972,269) which are included within the share-based
payment reserve. The movement in the year was 2,975,807 shares used to satisfy awards made under the Company’s share-
based incentive schemes offset by a transfer of 5,000,000 Ordinary shares from Treasury.
9. Reserves
Share capital and share premium
The balance classified as equity share capital includes the total net proceeds (both nominal value and share premium) on issue
of registered share capital of the parent company. Share issue costs associated with the issuance of new equity are treated as
a direct reduction of proceeds. The share capital comprises only one class of Ordinary share. Each Ordinary share carries an
equal voting right and right to a dividend.
Other reserve
The other reserve is used to record any other transactions taken straight to reserves as non-distributable.
Treasury shares
Represents amounts transferred following purchase of the Company’s own shares out of distributable profits, with those shares
available for resale into the market, transfer to the Group’s Employee Benefit Trust (‘EBT’) where they can be used to satisfy
awards made under the Company’s share-based incentive schemes, or cancelled.
Capital redemption reserve
Represents the par value of shares cancelled following the purchase of the Company’s own shares out of distributable profits.
Share-based payments reserve
The reserve for share-based payments is used to record the value of equity-settled share-based payments awards to
employees and the balance of the shares held by the Company’s Employee Benefit Trust which are held to satisfy these awards.
Transfers out of this reserve are made upon vesting of the original share awards. Share-based payment plan information is
disclosed in note 20 of the Group financial statements.
10. Auditor’s remuneration
Fees payable to the Company’s auditor for the audit of the Company and Group financial statements are disclosed in note 4(f)
of the Group financial statements.
11. Directors’ remuneration
The emoluments of the Directors are paid to them in their capacity as Directors of the Company for qualifying services to the
Company and the EnQuest Group. Further information is provided in the Directors’ Remuneration Report on pages 110 to 119.
12. Distributions proposed
Further details are disclosed in note 8 of the Group financial statements.
13. Contingencies
The Company provides a number of parent company guarantees. These have been assessed as having no material value.
Financial Statements
Notes to the Company Financial Statements
continued
For the year ended 31 December 2025
190–191
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
The Group uses Alternative Performance Measures (‘APMs’) when assessing and discussing the Group’s financial performance,
balance sheet and cash flows that are not defined or specified under IFRS but consistent with accounting policies applied in the
financial statements. The Group uses these APMs, which are not considered to be a substitute for, or superior to, IFRS measures,
to provide stakeholders with additional useful information to aid the understanding of the Group’s underlying financial
performance, balance sheet and cash flows by adjusting for certain items, as set out below, which impact upon IFRS measures
or, by defining new measures.
The Group adjusts for material items consisting of income and expense within its APMs which, because of the nature or expected
infrequency of the events giving rise to them or they are items which are remeasured on a periodic basis, merit separate
presentation to allow shareholders to understand better the elements of financial performance in the year, so as to facilitate
comparison with prior periods and to better assess trends in financial performance.
Adjusting items include, but are not limited to:
•
unrealised mark-to-market changes in the remeasurement of open derivative contracts at each period end;
•
impairments on assets, including other non-routine write-offs/write-downs where deemed material;
•
fair value accounting arising in relation to business combinations. These transactions, and the subsequent remeasurements
of contingent assets and liabilities arising on acquisitions, including contingent consideration, do not relate to the principal
activities and day-to-day underlying business performance of the Group; and
•
other items that arise from time to time that are reviewed by management and considered to require separate presentation.
In considering the tax on exceptional items, the Group applies the appropriate statutory tax rate to each item to calculate the
relevant tax charge on exceptional items.
Adjusted net profit attributable to EnQuest PLC shareholders
2025
$’000
2024
$’000
Net profit/(loss) (A)
1,562
93,773
Adjustments – remeasurements and exceptional items:
Unrealised gains on derivative contracts (note 18)
77,520
267
Net impairment reversal/(charge) to oil and gas assets (note 9, note 10 and note 11)
5,819
(71,414)
Change in contingent consideration (notes 4(d))
387,145
(15,904)
Movement in other provisions (note 4(d))
4,685
–
Insurance income on Kraken shutdown and PM8/Seligi riser incident (see note 4(d))
(53)
1,663
Write-off of exploration costs (note 4(d))
(173)
(183)
Business acquisition transaction costs
(425)
–
Other non-cash UKA losses (note 4(b))
(11,490)
(1,335)
Drilling rig contract regret costs (note 4(d))
–
(14,629)
Pre‑tax remeasurements and exceptional items (B)
463,028
(101,535)
Tax on remeasurements and exceptional items (C)
(347,506)
59,761
Post‑tax remeasurements and exceptional items (D = B + C)
115,522
(41,774)
Adjusted net (loss)/ profit attributable to EnQuest PLC shareholders (A – D)
(113,960)
135,547
Adjusted EBITDA is a measure of profitability. It provides a metric to show earnings before the influence of accounting (e.g.
depletion and depreciation), financial deductions (e.g. borrowing interest) and other adjustments set out in the table below. For
the Group, this is a useful metric as a measure to evaluate the Group’s underlying operating performance and is a component
of a covenant measure under the Group’s reserve based lending (‘RBL’) facility. It is commonly used by stakeholders as a
comparable metric of core profitability and can be used as an indicator of cash flows available to pay down debt. Due to the
adjustment made to reach adjusted EBITDA, the Group notes the metric should not be used in isolation. The nearest equivalent
measure on an IFRS basis is profit/(loss) before tax and finance income/(costs).
Adjusted EBITDA
2025
$’000
2024
$’000
Reported profit from operations before tax and finance income/(costs)
648,794
311,528
Adjustments:
Unrealised gains on derivative contracts (note 18)
(77,520)
(267)
Net impairment (reversal)/charge to oil and gas assets (note 9, note 10 and note 11)
(5,819)
71,414
Change in contingent consideration (notes 4(d))
(387,145)
15,904
Insurance income on Kraken and PM8/Seligi riser incident (see note 4(d))
53
(1,663)
Licence write-off/write-off of exploration costs (see note 4(d))
173
183
Drilling rig contract regret costs (see note 4(d))
–
14,629
Depletion and depreciation (note 4(b) and note 4(c))
272,428
269,292
Inventory revaluation
2,800
(5,539)
Change in decommissioning and other provisions (note 4(d))
9,814
7,078
Business combination transaction costs (note 30)
425
–
Other non-cash UKA losses (note 4(b))
11,490
1,335
Net foreign exchange loss/(gain) (note 4(d))
28,330
(9,975)
Adjusted EBITDA (E)
503,823
673,919
Total cash and available facilities is a measure of the Group’s liquidity at the end of the reporting period. The Group believes this
is a useful metric as it is an important reference point for the Group’s going concern and viability assessments, see pages
40 to 41.
Total cash and available facilities
2025
$’000
2024
$’000
Available cash
265,886
226,317
Restricted cash
2,960
53,922
Total cash and cash equivalents (F) (note 13)
268,846
280,239
Available undrawn facility (G)
(I)
409,795
194,256
Total cash and available facilities (F + G)
678,641
474,495
(i)
Includes amounts available under the RBL: $400.0 million (2024: $176.4 million) and vendor loan facility providing capacity for refinancing the payment of existing
invoices up to an amount of £23.7 million): $9.8 million available (2024: $17.9 million)
Net debt is a liquidity measure that shows how much debt a company has on its balance sheet compared to its cash and
cash equivalents. It is an important reference point for the Group’s going concern and viability assessments, see pages 40 to 41.
The Group’s definition of net debt, referred to as EnQuest net debt, excludes unamortised fees, accrued interest and the
Group’s lease liabilities as the Group’s focus is the management of cash borrowings and a lease is viewed as deferred
capital investment.
EnQuest net debt
2025
$’000
2024
$’000
Loans and borrowings (note 17):
SVT working capital facility
36,331
33,972
Vendor loan facility
22,096
–
Bonds (note 17):
USD High yield bond
458,844
454,339
GBP Retail bond
179,367
167,101
Accrued interest
10,826
9,445
Loans and borrowings (H)
707,464
664,857
Non-cash accounting adjustments (note 17):
Unamortised fees on bonds
6,156
10,661
Accrued interest
(10,826)
(9,445)
Non‑cash accounting adjustments (I)
(4,670)
1,216
Debt (H + I) (J)
702,794
666,073
Less: Cash and cash equivalents (note 13) (F)
268,846
280,239
EnQuest net debt (J – F) (K)
433,948
385,834
Financial Statements
Glossary – Non-GAAP Measures
192–193
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
The EnQuest net debt/adjusted EBITDA metric is a ratio that provides management and users of the Group’s consolidated
financial statements with an indication of the Group’s ability to settle its debt. This is a helpful metric to monitor the Group’s
progress against its strategic objective of maintaining balance sheet discipline.
EnQuest net debt/adjusted EBITDA
2025
$’000
2024
$’000
EnQuest net debt (K)
433,948
385,834
Adjusted EBITDA (E)
503,823
673,919
EnQuest net debt/adjusted EBITDA (K/E)
0.9
0.6
Cash capital expenditure (nearest equivalent measure on an IFRS basis is purchase of property, plant and equipment) monitors
investing activities on a cash basis, while cash decommissioning expense monitors the Group’s cash spend on
decommissioning activities. The Group provides guidance to the financial markets for both these metrics given the materiality
of the work programme.
Cash capital and decommissioning expense
2025
$’000
2024
$’000
Reported net cash flows (used in)/from investing activities
(194,242)
(182,435)
Adjustments:
Payment of Magnus contingent consideration – Profit share
–
48,466
Proceeds from vendor financing facility receipt
–
(107,518)
Proceeds from Bressay farm-down
–
(1,263)
Acquisition
20,278
–
Interest received
(5,286)
(10,101)
Cash capital expenditure
(179,250)
(252,851)
Decommissioning expenditure
(56,810)
(60,544)
Cash capital and decommissioning expense
(236,060)
(313,395)
Adjusted free cash flow (‘FCF’) represents the cash a company generates, after accounting for cash outflows to support
operations and to maintain its capital assets. It excludes movements in loans and borrowings, net proceeds from share issues,
the impact of acquisitions and disposals and shareholder distributions. Currently, this metric is useful to management and users
to assess the Group’s ability to allocate capital across a range of activities – including investment shareholder distributions,
transactions and debt management.
Adjusted free cash flow
2025
$’000
2024
$’000
Net cash flows from/(used in) operating activities
362,725
507,631
Adjustments:
Purchase of property, plant and equipment
(175,025)
(249,165)
Purchase of oil and gas intangible assets
(4,225)
(3,686)
Payment of Magnus contingent consideration
–
(48,466)
Estimated cash tax on disposal proceeds
(i)
–
50,000
Interest received
5,286
10,101
Payment of obligations under finance lease
(83,061)
(130,065)
Interest paid
(96,997)
(83,162)
Adjusted Free cash flow
8,703
53,188
(i)
Estimated by reference to disposal proceeds of $141.4 million and the EPL tax rate at that time of 35%
Average realised price is a measure of the revenue earned per barrel sold. The Group believes this is a useful metric for
comparing performance to the market and to give the user, both internally and externally, the ability to understand the drivers
impacting the Group’s revenue.
Revenue sales
2025
$’000
2024
$’000
Revenue from crude oil sales (note 4(a)) (L)
858,166
1,020,266
Revenue from gas and condensate sales (note 4(a))
200,526
164,647
Realised gains/(losses) on oil derivative contracts (note 4(a)) (M)
8,744
(12,907)
Barrels equivalent sales
2025
kboe
2024
kboe
Sales of crude oil (N)
12,595
12,554
Sales of gas and condensate
(i)
2,678
2,400
Total sales
15,273
14,954
(i)
Includes volumes related to onward sale of third-party gas purchases not required for injection activities at Magnus
Average realised prices
2025
$/Boe
2024
$/Boe
Average realised oil price, excluding hedging (L/N)
68.1
81.3
Average realised oil price, including hedging ((L + M)/N)
68.8
80.2
Operating costs (‘opex’) is a measure of the Group’s cost management performance (reconciled to reported cost of sales, the
nearest equivalent measure on an IFRS basis). Opex is a key measure to monitor the Group’s alignment to its strategic pillars of
financial discipline and value enhancement and is required in order to calculate opex per barrel (see below).
Operating costs
2025
$’000
2024
$’000
Total cost of sales (note 4(b))
837,540
787,383
Adjustments:
Unrealised gains/(losses) on derivative contracts related to operating costs (note 4(b))
32,342
(2,823)
Depletion of oil and gas assets (note 4(b))
(267,299)
(263,251)
Charge relating to the Group’s lifting position and inventory (note 4(b))
(17,407)
(2,172)
Other cost of operations
(i)
(note 4(b))
(179,628)
(134,984)
Other non-cash UKA losses
(11,490)
(1,335)
Operating costs
394,058
382,818
Less: realised gains/(losses) on derivative contracts (P) (note 4(b))
19,711
(4,735)
Operating costs directly attributable to production
413,769
378,083
Comprising of:
Production costs (Q) (note 4(b))
344,580
307,634
Tariff and transportation expenses (R) (note 4(b))
69,189
70,449
Operating costs directly attributable to production
413,769
378,083
(i)
Includes $166.2 million (2024: $125.7 million) of purchases and associated costs of third-party gas not required for injection activities at Magnus, which is sold on
Barrels equivalent produced
2025
kboe
2024
kboe
Total produced (working interest) (S)
(i)
15,675
14,909
(i)
Production 1,161 kboe associated with Seligi 1a gas (2024: 724 kboe)
Unit opex is the operating expenditure per barrel of oil equivalent produced. This metric is useful as it is an industry standard
metric allowing comparability between oil and gas companies. Unit opex including hedging includes the effect of realised gains
and losses on derivatives related to foreign currency and emissions allowances. This is a useful measure for investors because it
demonstrates how the Group manages its risk to market price movements.
Operating costs
2025
$/Boe
2024
$/Boe
Production costs (Q/S)
22.0
20.6
Tariff and transportation expenses (R/S)
4.4
4.7
Total unit opex ((Q + R)/S)
26.4
25.3
Realised (gain)/loss on derivative contracts (P/S)
(1.3)
0.3
Total unit opex including hedging ((P + Q+ R)/S)
25.1
25.6
Financial Statements
Glossary – Non-GAAP Measures
continued
194–195
EnQuest PLC Annual Report and Accounts 2025
Financial Statements
Corporate Governance
Strategic Report
Company information
Registered office
5–11 Regent Street
London
Corporate brokers
J.P. Morgan Cazenove
25 Bank Street
London
E14 5JP
BofA Securities
2 King Edward Street
London
EC1A 1HQ
Auditor
Deloitte LLP
2 New Street Square
London
EC4A 3BZ
Legal adviser
Ashurst LLP
London Fruit & Wool Exchange
1 Duval Square
London
E1 6PW
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.
Corporate and financial public relations
Teneo
85 Fleet Street
London
EC4Y 1AE
EnQuest PLC shares are traded on the London Stock Exchange
using the code ‘ENQ’.
Registrar
MUFG Corporate Markets
10th Floor
Central Square
29 Wellington Street
Leeds
LS1 4DL
Financial calendar
22 May 2026: Annual General Meeting
September 2026: Half-year results
More information at
www.enquest.com
CBP030752
Printed by a CarbonNeutral® Company certified to ISO 14001 environmental management system.
Printed on material from well-managed, FSC® certified forests and other controlled sources.
100% of the inks used are HP Indigo ElectroInk which complies with RoHS legislation and meets the
chemical requirements of the Nordic Ecolabel (Nordic Swan) for printing companies, 95% of press
chemicals are recycled for further use and, on average 99% of any waste associated with this
production will be recycled and the remaining 1% used to generate energy.
The paper is Carbon Balanced with World Land Trust, an international conservation charity, who
offset carbon emissions through the purchase and preservation of high conservation value land.
Through protecting standing forests under threat of clearance, carbon is locked-in that would
otherwise be released.
EnQuest PLC Annual Report and Accounts 2025
196
London, England
2nd Floor, Charles House
5-11 Regent Street
London, SW1Y 4LR
United Kingdom
T +44 (0)20 7925 4900
Aberdeen, Scotland
Annan House
Palmerston Road
Aberdeen, AB11 5QP
United Kingdom
T +44 (0)1224 975 000
Vietnam
Premier Oil
Vietnam Offshore B.V.
Deutsches Haus Ho Chi Minh City
33 Le Duan Blvd., Sai Gon Ward,
Ho Chi Minh City, Vietnam
T +84 (28)3910 5788
Kuala Lumpur, Malaysia
Level 12, Menara Maxis
Kuala Lumpur City Centre
50088 Kuala Lumpur
Malaysia
T +60 (3)2783 1888
Brunei
EnQuest EP BV Limited
(Reg. No. RFC30000019)
8th Floor, PGGMB Building
Jalan Kg Kianggeh
Bandar Seri Begawan
BS8111
Brunei Darussalam
Indonesia
EnQuest EP Gaea Limited
EnQuest EP Gaea II Limited
Pondok Indah Office Tower 5
12th Floor, Unit 1202
Jl. Sultan Iskandar Muda Kav. V-TA
Pondoh Pinang. Kec. Kebayoran
Lama, Pondok Indah
Jakarta 12310
Indonesia
Manama, Bahrain
GFH Tower Building 1411, Office 80
Bahrain Financial Harbour
District, Sea Front, Manama
Bahrain
T +97 (3)1777 1718
More information at
www.enquest.com