ENQUEST PLC - Annual Report 2025 | FinancialReports.eu

ENQUEST PLC

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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

Highlights

Key performance indicators

At a glance

Chairman’s statement

Market overview

Chief Executive’s report

Our strengths

20 Our strategy

22 Operational review

Oil and gas reserves and

resources

35 Hydrocarbon assets

36 Financial review

Group non-ﬁnancial and

sustainability information

statement

44 Environmental, Social

and Governance

48 Environmental

56 Social

Governance: Risks and

uncertainties

75 Governance: Business

conduct

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

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

An independent

energy

company, demonstrating

expertise across the

transition lifecycle

Strategic Report

Who we are and what we do

Repurposing existing

infrastructure to deliver new

energy and decarbonisation

opportunities at scale

Managing assets to optimise

and grow production while

exercising cost control and

capital discipline

Safely and efﬁciently

executing decommissioning

activities

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

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

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

See reconciliation of alternative performance

measures within the ‘Glossary – Non-GAAP

measures’ starting on page 192

Notes opposite

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)

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 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

UK Production Hubs

South East Asian

country operations

Onshore

Processing

Terminal

Decommissioning

Assets

45,606

163

(MMboe)

2P Reserves

452

(MMboe)

2C Reserves

Operated

1.4

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

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.

•

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.”

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

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

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

Life extension achieved at

Magnus, PM8/Seligi, GKA

and The Dons, following

acquisition

mpta

2.8

+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

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

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

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

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

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

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

Daily average net

production Boepd

31,122

-4%

2024: 32,587

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

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

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.

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

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

Wells abandoned

Thistle successfully

completed its P&A

programme with

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)

Shetland onshore wind

capacity factor

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

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

from isolated emitters in the UK and

Europe. CO

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

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

Licence

Block(s)

Working

interest (%)

Name

Decommissioning

obligation (%)

UK North Sea Upstream production and development

P193

211/7a & 211/12a

100.0

Magnus

30.0

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

16/26a

8.0

Alba

As per working interests

P234/P493/P920/P977

3/28a, 3/28b, 3/27b, 9/2a, 9/3a

Bressay

P1078

9/3b

100

Bentley

P300/P928

14/26a, 20/1a

26.69

Golden Eagle

P2632

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

P236

211/18a

n/a

Thistle/Deveron

6.1

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

9/15a

33.3

n/a

Malaysia production and development

PM8/Seligi

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

Brunei

Block C PSA

Block C

100

Vietnam

Block 12W PSC

Block 12W

53.125

Chim Sáo & Dua

Notes:

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

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

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

UK 33rd licence round award. EnQuest relinquished this licence in February 2026

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

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:

Reserves and resources are quoted on a working interest basis

2P reserves and 2C resources have been assessed by the Group’s internal reservoir engineers, utilising geological, geophysical, engineering and ﬁnancial data

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

Includes newly acquired Block 12W in Vietnam

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

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)

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

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

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

$/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:

See reconciliation of alternative performance measures within the ‘Glossary

– Non-GAAP measures’ starting on page 192

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

503.8

673.9

Note:

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

(433.9)

Note:

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

433.9

385.8

Note:

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

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

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

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 in Our Strategy

Page 5

Our strategic focus

Managing assets to optimise and

grow production while exercising cost

control and capital discipline

Repurposing existing infrastructure

to deliver new energy and

decarbonisation opportunities at scale

Safely and efﬁciently executing

decommissioning activities

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

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

Read more in Our Strategy

see Page 2

Related KPIs

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

Read more in Our Strategy

see Page 2

Related KPIs

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

Read more in Our Strategy

see Page 2

Related KPIs

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

Read more in Our Strategy

see Page 2

Related KPIs

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

Read more in Our Strategy

see Page 2

Related KPIs

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

Read more in Our Strategy

see Page 2

Related KPIs

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

Read more in Our Strategy

see Page 2

Related KPIs

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

Read more in Our Strategy

see Page 2

Related KPIs

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

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

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

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

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.

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

•

Scope 2 (location based) – 35,846 tCO

• Scope 3 – 5,831,999 tCO

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

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

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

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.

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.

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.

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.

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.

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.

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

People

Investors

Partners

Host governments and regulators

Suppliers

Communities

Customers

Principal decision and

impacted stakeholders

Stakeholder considerations and impact on the

long-term sustainable success of the Company

Shareholder

distributions

Impacted stakeholders:

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:

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:

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

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

Committees key

Audit

Governance and Nomination

Remuneration and Social Responsibility

Sustainability and Risk

Denotes Committee Chair

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.

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

Marianne Daryabegui

Rosalind Kainyah

Farina Khan

Michael Borrell

Marianne Daryabegui

Rosalind Kainyah

Farina Khan

Gareth Penny

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

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

Non‑Executive Directors

Gareth Penny

Michael Borrell

Marianne Daryabegui

Rosalind Kainyah

Farina Khan

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

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

57.14%

66.7%

Women

42.86%

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)

57.14%

66.7%

Mixed/Multiple Ethnic Groups

–

Asian/Asian British

14.29%

33.3%

Black/African/Caribbean/Black

British

14.29%

–

Other ethnic group

14.29%

–

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

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)

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

Total ﬁxed

Annual

bonus

PSP

Total

variable

Total single

ﬁgure

Amjad Bseisu

2025

600

651

500

1,152

2024

600

651

379

1,030

Jonathan Copus

2025

400

440

334

774

2024

233

257

147

404

Total

2025

1,000

1,091

834

1,925

2024

833

908

526

1,434

Notes:

Rounding may apply on the numbers provided.

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

Cash was provided in lieu of a company pension contribution

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

2024

200

–

200

Farina Khan

2025

2024

–

Michael Borrell

2025

2024

–

Rosalind Kainyah

2025

2024

–

Marianne Daryabegui

2025

2024

–

Total

2025

480

2024

421

–

421

Notes:

Rounding may apply on the numbers provided.

Michael Borrell was appointed as Chair of the Sustainability and Risk Committee on 31 May 2024

Rosalind Kainyah was appointed to the Board and as Chair of the Remuneration and Social Responsibility Committee on 30 May 2024

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

(Kboed)

20.0%

40.0

42.0

45.0

45.6

100.0%

Expenditure

Cash opex/capex/abex ($m)

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.

100.0%

Regulatory, ESG and culture

8.0%

Other deﬁned regulatory projects

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

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

Partial

32.1%

Growth

Deliver against M&A project

20.0%

Partial

Deliver

Deliver 1

Partial

30.0%

Growth

2.5%

Investor relations objectives

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.

Targets and outcomes assessed on a like-for-like pro forma basis

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

£0

Jonathan Copus

£400,000

125.0%

66.7%

83.4%

£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

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.

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

vesting

Valuation

share price

(£)

Value at

31 Dec 25 (£)

Amjad Bseisu

8,102,723

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

)

Face value

at grant (£)

Number of

granted

Amjad Bseisu

185%

£1,110,000

8,453,922

Jonathan Copus

185%

£740,000

5,635,948

Notes:

PSP awards are calculated with reference to the salary in effect at the end of the previous ﬁnancial year, where available

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

40%

50th percentile

75th percentile or higher

Absolute TSR

40%

17.0p

22.0p or higher

Emission reduction

20%

25.0% reduction

41.3% reduction or more

Notes:

Straight-line vesting between Threshold and Maximum.

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

Average share price over the period 1 October 2027 to 31 December 2027, plus any dividends paid FY25-FY27

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

25 Apr 2022 – 24 Apr 2025

24 Apr 2032

8,102,723

25 Apr 2023 – 24 Apr 2026

25 Apr 2033

6,054,872

24 Apr 2024 – 23 Apr 2027

24 Apr 2034

8,453,922

17 Apr 2025 – 16 Apr 2028

17 Apr 2035

Jonathan Copus

4,718,390

24 Apr 2024 – 23 Apr 2027

24 Apr 2034

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

Value of

Legally

Owned

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

234,732,857

4276%

22,611,517

6,791,760

72,475

264,208,609

4339%

Jonathan Copus

10,354,338

10,354,388

Gareth Penny

62,500

Farina Khan

211,235

Michael Borrell

129,829

Rosalind Kainyah

Marianne Daryabegui

168,160

Notes:

Shares are valued by taking the average closing share price on each trading day of the period 1 October 2025 to 31 December 2025

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

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

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.)

PSP vesting (% max.)

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

Methodology

P25 (lower quartile)

P50 (median)

P75 (upper quartile)

2025

12:1

10:1

9:1

2024

11:1

9:1

8:1

2023

13:1

11:1

9:1

2022

25:1

20:1

17:1

2021

15:1

13:1

11:1

2020

14:1

12:1

10:1

2019

23:1

14:1

11:1

Notes:

For 2019-2024, the pay ratios shown are as disclosed in the relevant year’s report

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

673

504

(25)%

EnQuest net debt

386

434

12%

Distribution to shareholders

67%

Total employee pay

(3)%

Notes:

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

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

Jonathan Copus

n/a

Gareth Penny

n/a

n/m

n/a

Farina Khan

(23)

n/a

Michael Borrell

n/a

Rosalind Kainyah

n/a

Marianne Daryabegui

n/a

UK employees (avg)

Bonus

2024

to 2025

2023

to 2024

2022

to 2023

2021

to 2022

2020

to 2021

Amjad Bseisu

(12)

(7)

Jonathan Copus

n/a

UK employees (avg)

(34)

(7)

Notes:

n/a – not applicable; n/m – not meaningful

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

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

40%

50th percentile

75th percentile or higher

Absolute TSR

40%

17.0p

22.0p or higher

Emission reduction

20%

33.3% reduction

45.8% reduction or more

Notes:

Straight-line vesting between Threshold and Maximum.

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

Average share price over the period 1 October 2028 to 31 December 2028, plus any dividends paid FY26-FY28

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

Director

£60,400

£62,400

Senior Independent Director additional fee

£10,000

Committee Chair additional fee

£10,000

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

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

Bseisu consolidated interests

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:

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

234,732,857

Jonathan Copus

–

Gareth Penny

137,047

Michael Borrell

129,829

Rosalind Kainyah

–

Marianne Daryabegui

168,160

Farina Khan

211,235

Notes:

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

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

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

SECR

2024

SECR

2018

baseline

Total emissions tCO

6,900,362

6,622,087

1,704,893

Scope 1

Total emissions tCO

1,032,517

996,749

1,617,366

Scope 2

Total emissions tCO

35,846

71,603

87,526

Scope 1

Extraction emissions tCO

964,971

890,175

1,562,507

Scope 2

Extraction emissions tCO

603

419

1,515

Extraction intensity ratio kgCO

e/Boe

45.67

46.28

47.54

Scope 1

Terminal (SVT) emissions tCO

2,3

67,546

106,573

54,859

Scope 2

Terminal (SVT) emissions tCO

2,3

35,243

71,184

86,011

Terminal (SVT) intensity ratio kgCO

e/Boe

throughput

2,3,7

3.30

5.03

4.65

Scope 3

Emissions tCO

e (All Operations)

5,831,999

5,553,735

N/A

Energy Consumption

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

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

e/Boe

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

UK offshore tCO

Non-UK tCO

67,551

602,973

361,993

106,578

606,184

283,987

Scope 2

UK onshore tCO

UK offshore tCO

Non-UK tCO

35,355

490.59

71,289

314

Scope 3

UK onshore tCO

2,5

UK offshore tCO

2,5

Non-UK tCO

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

665,927

389,515,744

418,575

Notes:

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

e = tonnes of CO

equivalent. kgCO

e = kilogrammes of CO

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

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

e from SVT divided by the aggregate total throughput at the terminal

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

Kilo-watt hour (kWh) data is reported on a net caloriﬁc value basis throughout

EnQuest’s Scope 3 emissions breakdown for 2025 includes Category 5 ‘waste generated in operations’ (467 tCO

e), Category 6 ‘business travel’ (6,370tCO

e), Category 7

‘commuting emissions’ (367 tCO

e) and Category 11 ‘use of sold product’ (5,824,796 tCO

e). This is consistent with EnQuest’s Scope 3 emissions breakdown from 2024.

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

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

61, 102

176

182

180

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)

1,118,300

1,180,709

Cost of sales

4(b)

(837,540)

(787,383)

Gross proﬁt/(loss)

280,760

393,326

Net impairment reversal/(charge) to oil and gas assets

5,819

(71,414)

General and administration expenses

4(c)

(7,482)

(5,702)

Other income/(expenses)

4(d)

369,697

(4,682)

Proﬁt/(loss) from operations before tax and ﬁnance income/(costs)

648,794

311,528

Finance costs

(164,591)

(159,422)

Finance income

9,224

14,508

Proﬁt/(loss) before tax

493,427

166,614

Income tax

(i)

(491,865)

(72,841)

Proﬁt/(loss) for the year attributable to owners of the parent

1,562

93,773

Total comprehensive proﬁt/(loss) for the year, attributable to owners of the parent

1,562

93,773

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

Basic

0.001

0.050

Diluted

0.001

0.049

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

2,370,131

2,297,954

Goodwill

139,510

134,400

Intangible assets

24,615

20,563

Deferred tax assets

6(c)

271,375

506,481

Other receivables

128,166

2,102

Other ﬁnancial assets

50,818

38,459

2,984,615

2,999,959

Current assets

Intangible assets

1,110

1,138

Inventories

32,759

48,976

Trade and other receivables

245,469

230,971

Current tax receivable

2,021

1,256

Cash and cash equivalents

268,846

280,239

Other ﬁnancial assets

59,491

609,696

562,649

TOTAL ASSETS

3,594,311

3,562,608

EQUITY AND LIABILITIES

Equity

Share capital and premium

392,054

Treasury shares

(3,540)

(4,425)

Share-based payments reserve

12,395

13,949

Capital redemption reserve

2,006

Retained earnings

125,144

138,882

TOTAL EQUITY

528,059

542,466

Non‑current liabilities

Loans and borrowings

638,211

621,440

Lease liabilities

285,767

288,262

Contingent consideration

24,302

452,891

Provisions

(i)

877,954

710,976

Deferred income

138,095

Deferred tax liabilities

6(c)

250,364

104,698

2,214,693

2,316,362

Current liabilities

Loans and borrowings

69,253

43,417

Lease liabilities

86,323

46,994

Contingent consideration

60,318

20,403

Provisions

(i)

54,082

55,130

Trade and other payables

454,650

414,390

Other ﬁnancial liabilities

10,391

21,580

Current tax payable

116,542

101,866

851,559

703,780

TOTAL LIABILITIES

3,066,252

3,020,142

TOTAL EQUITY AND LIABILITIES

3,594,311

3,562,608

(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 attached notes 1 to 31 form part of these Group ﬁnancial statements.

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

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

497,819

685,946

Cash received/(paid) on sale/(purchase) of ﬁnancial instruments

9,075

(10,306)

Net cash received for trading of other intangible assets

26,829

–

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

362,725

507,631

INVESTING ACTIVITIES

Purchase of property, plant and equipment

(175,025)

(249,165)

Proceeds from farm-down

–

1,263

Vendor ﬁnancing facility repaid

18(f), 24

–

107,518

Purchase of intangible oil and gas assets

(4,225)

(3,686)

Payment of Magnus contingent consideration – Proﬁt share

–

(48,465)

Acquisition

(20,278)

–

Interest received

5,286

10,100

Net cash ﬂows (used in)/from investing activities

(194,242)

(182,435)

FINANCING ACTIVITIES

Proceeds from loans and borrowings

152,432

31,662

Repayment of loans and borrowings

(146,451)

(162,304)

Payment for repurchase of shares

–

(9,018)

Payment of obligations under ﬁnancing leases

(83,061)

(130,065)

Dividend paid

(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

13,107

(5,642)

Cash and cash equivalents at 1 January

280,239

313,572

CASH AND CASH EQUIVALENTS AT 31 DECEMBER

268,846

280,239

Reconciliation of cash and cash equivalents

Total cash at bank and in hand

265,886

226,317

Restricted cash

2,960

53,922

Cash and cash equivalents per balance sheet

268,846

280,239

The attached notes 1 to 31 form part of these Group ﬁnancial statements.

Notes

capital

$’000

premium

$’000

Treasury

$’000

Share-

based

payments

reserve

$’000

Capital

redemption

reserve

$’000

Retained

earnings

$’000

Total

$’000

Balance at 1 January 2024

133,285

260,546

–

13,195

–

49,702

456,728

Proﬁt for the year

–

93,773

Total comprehensive income for the year

–

93,773

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

–

983

–

983

Balance at 31 December 2024

131,508

260,546

(4,425)

13,949

2,006

138,882

542,466

Proﬁt for the year

–

1,562

Total comprehensive income for the year

–

1,562

Transfer of shares to Employee Beneﬁt

Trust

–

885

(885)

–

Share-based payment

–

(669)

–

(669)

Dividend paid

–

(15,300)

Balance at 31 December 2025

131,508

260,546

(3,540)

12,395

2,006

125,144

528,059

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

1. Corporate information

EnQuest PLC (‘EnQuest’ or the ‘Company’) is a public company limited by shares incorporated in the United Kingdom under the

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.

EnQuest PLC is the ultimate controlling party. The principal activities of the Company and its subsidiaries (together the ‘Group’)

are to responsibly optimise production, leverage existing infrastructure, deliver a strong decommissioning performance and

explore new energy and decarbonisation opportunities.

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.

A listing of the Group’s companies is contained in note 28 to these Group ﬁnancial statements.

2. Basis of preparation

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.

Going concern

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.

Accordingly, the Directors continue to adopt the going concern basis in preparing these ﬁnancial statements.

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.

Basis of consolidation

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

to transactions between the members of the Group are eliminated on consolidation.

Joint arrangements

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-

line basis. During 2025, the Group did not have any material interests in joint ventures or in associates as deﬁned in IAS 28.

Foreign currencies

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

and losses are taken to proﬁt and loss in the Group income statement.

Emissions liabilities

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.

Both the emission allowances and the emission liability are derecognised upon settling the liability with the respective regulator.

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

Use of judgements, estimates and assumptions

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

adjustment to the carrying amounts of assets and liabilities within the next ﬁnancial year, this is speciﬁcally noted.

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.

Critical accounting judgements and key sources of estimation uncertainty

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

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.

Deferred tax

The Group assesses the recoverability of its deferred tax assets at each period end. Sensitivities and additional information

relating to deferred tax assets/liabilities are provided in note 6(d).

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

assumptions representing management’s view of the long-term oil price.

3. Segment information

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

million, and $115.7 million per each single customer).

4. Revenue and expenses

(a) Revenue and other operating income

Accounting policy

Revenue from contracts with customers

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

performance of the obligation.

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

can be reliably measured.

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))

(b) Cost of sales

Accounting policy

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

current receivables and an over-lift of production from a ﬁeld is included in current liabilities.



	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)

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

| | | |
| --- | --- | --- |
| | |
| | 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)

Includes $3.7 million (2024: $3.4 million) right-of-use assets depreciation charge on buildings

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

(d) Other income/(expenses)

| | | |
| --- | --- | --- |
| | 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) |

(i) In 2024, drilling rig contract at Kraken was terminated due to a deferral of inﬁll drilling

(e) Staff costs

Accounting policy

Short-term employee beneﬁts, such as salaries, social premiums and holiday pay, are expensed when incurred.

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

administration and 337 directly attributable to assets). Compensation of key management personnel is disclosed in note 26.

(f) Auditor’s remuneration

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

comfort letters in respect of the Group’s reﬁnancing activities. Included within 2025 is £30,000 (2024: nil) related to other services that are not assurance related

5. Finance costs/income

Accounting policy

Borrowing costs are recognised as interest payable within ﬁnance costs at amortised cost using the effective interest method.


	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

6. Income tax

(a) Income tax

Accounting policy

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.

Deferred tax is provided in full on temporary differences arising between the tax bases of assets and liabilities and their carrying

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

relate to the same taxation authority and that the Group intends to make a single net payment.

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

reduction in the charge to taxation in the years claimed.

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

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

described above for income taxes.

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

current period ﬁnancial statements tax charge and deferred tax for EPL being $123.9 million.

7. Earnings per share

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

8. Distributions paid and proposed

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

shares trading ex-dividend from 7 May 2026.

9. Property, plant and equipment

Accounting policy

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

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

the assets are substantially ready for their intended use.

Depletion and depreciation

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 year end. Any changes in estimate are accounted for on a prospective basis.

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

Impairment of tangible (excluding goodwill)

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

impairment loss is recognised immediately in the Group income statement.


		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

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

changes in production proﬁles, partially offset by a lower discount rate.

10. Goodwill

Accounting policy

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

indicate the recoverable amount of the CGU (or group of CGUs) to which the goodwill relates should be assessed.

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

valuation of the CGUs as described above.

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

(2024: 17%), however Management do not consider this to be a reasonably possible change.

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

11. Intangible assets

Accounting policy

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

assessed for any impairment prior to transfer and any impairment loss is recognised in the Group income statement.

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

sheet as an intangible asset at cost. The UKAs will be derecognised upon settling the liability with the respective regulator.


	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

12. Inventories

Accounting policy

Inventories of consumable well supplies and inventories of hydrocarbons are stated at the lower of cost and NRV, cost being

determined on an average cost basis.


	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

supplies to their estimated net realisable value.

13. Cash and cash equivalents

Accounting policy

Cash and cash equivalents includes cash at bank, cash in hand, cash deposited in relation to decommissioning security

arrangements and highly liquid interest-bearing securities with original maturities of three months or fewer.


	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

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

Bond in Indonesia (31 December 2024: $0.5 million related to bank guarantees for the Group’s Malaysian assets).

14. Financial instruments and fair value measurement

Accounting policy

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

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.

Prepayments, which are not ﬁnancial assets, are measured at historical cost.

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

Impairment of ﬁnancial assets

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

and are not subject to enforcement activity.

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 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

within ﬁnance costs.

Financial instruments at FVPL

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

are recognised within the Group income statement.

Fair value measurement

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

the present value (Level 2). A reconciliation of movements is disclosed in note 29.

15. Trade and other receivables

| | | |
| --- | --- | --- |
| | 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

within trade and other receivables to better reﬂect the variable nature of drawings under the facility.

16. Trade and other payables

| | | |
| --- | --- | --- |
| | |
| | 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

interest accruals.

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

17. Loans and borrowings

| | | |
| --- | --- | --- |
| | 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

offer were recognised in the income statement in 2022. The fair value of the GBP retail bond 9.00% is disclosed in note 14.

18. Other ﬁnancial assets and ﬁnancial liabilities

(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)

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

ﬁeld. Interest on the outstanding amount accrues at 2.5% plus the Bank of England’s Base Rate.

19. Share capital and reserves

Accounting policy

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.

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.

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

income statement on the purchase, sale, issue or cancellation of equity shares.



					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-

based incentive schemes offset by a transfer of shares from Treasury.

20. Share-based payment plans

Accounting policy

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

dealing restriction.

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

leave for qualifying reasons.

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

21. Contingent consideration

Accounting policy

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

recorded as an investing cash outﬂow.



		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

assumptions would not have a material impact on the provision.

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

22. Provisions

Accounting policy

Decommissioning

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

uncertain. See Use of judgements, estimates and assumptions: provisions within note 2.

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

other expense (2024: $0.4 million) and unwinding of discount of $0.8 million is included within ﬁnance costs (2024: $0.9 million).

23. Leases

Accounting policy

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,

the risk-free rate based on government bond rates and a credit risk adjustment based on EnQuest bond yields.

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

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

contract to each component.

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

24. Deferred income

Accounting policy

Income is not recognised in the income statement until it is highly probable that the conditions attached to the income will

be met.



	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

assets on an alternative project.

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

25. Commitments and contingencies

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

obligations, having held surety bonds totalling $277.0 million in 2024. See note 22 for further details.

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.

A contingent payment of $15.0 million to Equinor is due upon regulatory approval of a Bressay ﬁeld development plan.

26. Related party transactions

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).

Compensation of key management personnel

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

27. Risk management and ﬁnancial instruments

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

Credit risk

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,

over 70%).

Liquidity risk

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

Capital management

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)

See Glossary – non GAAP measures on pages 192 to 195

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

28. Subsidiaries

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.

Annan House, Palmerston Road, Aberdeen, Scotland, AB11 5QP, United Kingdom

Ground Floor, Colomberie House, St Helier, JE4 0RX, Jersey

c/o TMF, 10th Floor, Menara Hap Seng, No. 1 & 3, Jalan P. Ramlee 50250 Kuala Lumpur, Malaysia

PO Box 3140, Road Town, Tortola, VG1110, British Virgin Islands

Lairessestraat 145 C,1075 HJ Amsterdam, the Netherlands

29. Cash ﬂow information

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)

30. Business combination

Accounting policy

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

cannot be replaced without signiﬁcant cost, effort, or delay in the ability to continue producing outputs.

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

would have been $508.4 million.

31. Subsequent events

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

report, there has been no material disruption to the Group’s day-to-day business.

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

184–185

Company Balance Sheet

(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

Notes to the Company Financial Statements

For the year ended 31 December 2025

186–187

Company Statement of Changes in Equity

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

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.

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

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

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

capital

$’000

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))

(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

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