EnQuest response to NSTA sanctions

EnQuest PLC ("EnQuest" or the "Group") is widely recognised as the UK North Sea's leading decommissioning operator. The Group is proud to have won Offshore Energies UK's prestigious Excellence in Decommissioning Award in both 2022 and 2025. In the period encompassing these awards, EnQuest has:

• Removed four major infrastructure hubs and safely plugged and abandoned 84 wells, representing 47% of all wells decommissioned in the central and northern UK North Sea in the period.
• Completed this work at costs approximately 15% below the NSTA's latest benchmark average.
• Ensured the deployment of a wide range of personnel and service equipment vital to the UK North Sea.
• Developed innovative in-house technologies, workflows and techniques that are now benefiting decommissioning management across the North Sea.

EnQuest is therefore disappointed by the NSTA's decision to issue a sanction fine of £16.5 million for non-compliance in relation to the timing of plugging and abandonment ('P&A') of 33 relatively young and inactive wells across its North Sea asset portfolio.

Prioritising safety and the management of risk to life and the environment

Safety is EnQuest's principal operating focus for decommissioning. This means prioritising work on the basis of asset integrity to minimise risk to human life and the environment. As a result, our scheduling can differ from the date-driven and more mechanistic approach taken by the NSTA's sanctions team.

The wells that are the subject of NSTA sanction are within fields that ceased production from 2020 onwards. This means they are among the younger suspended well stock in what is otherwise a mature basin with multiple decommissioning priorities. They ranked as low integrity risk versus other wells in EnQuest's portfolio, while the majority of the 84 decommissioned wells were c.40 years old.

The Group has also been clear in its communications with the NSTA that forcing additional decommissioning activity into an already full multi-asset programme, purely to comply with the NSTA's mandated timeline, would compromise the safe completion of P&A work, which, based on asset integrity, was of higher priority.

EnQuest has presented to NSTA a clear and credible plan for the decommissioning of the sanction wells, and to deliver this, the Group signed a multi-year rig contract with Well-Safe Solutions in 2025. This contract secures vital supply chain resources in the North Sea well into the next decade.

The NSTA has, however, decided not to take EnQuest up on its offers to discuss the sanction and our associated representations, and has instead moved directly to its decision.

EnQuest is considering all options with regard to formally appealing the sanction and the fine.

Commenting on the announcement, Amjad Bseisu, CEO of EnQuest, said:

"This decision by the NSTA is not aligned with EnQuest's proven track record and the recognition achieved as a leading North Sea decommissioning operator.

At a critical time for the UK energy sector, we believe it is essential that the regulator supports industry efforts to safeguard energy security, protect jobs and sustain economic prosperity, rather than penalising a clear leader in decommissioning execution that is prioritising safety and an integrity-based approach, above all else."