LONDON, April 16 (Reuters) - Britain's EnQuest ( ENQUF )

is looking to sell its 27% stake in the Golden Eagle oilfield in

the British North Sea as it seeks to reduce debt levels, two

sources told Reuters on Tuesday.

It was unclear how much the sale of the non-operated stake

would raise. The process is being run by investment bank

Jefferies, the sources said.

A spokesperson for EnQuest ( ENQUF ) declined to comment. A

spokesperson for Jefferies also declined to comment.

EnQuest ( ENQUF ) bought the Golden Eagle stake from Suncor in

2021 for $325 million - roughly equal to EnQuest ( ENQUF ) market

capitalisation at the time - to boost its production capacity by

another 10,000 barrels of oil equivalent per day.

EnQuest ( ENQUF ) has struggled in recent years with high debt levels

and a drop in profits after Britain imposed a 35% windfall tax

on North Sea producers after the surge in energy prices

following Russia's invasion of Ukraine in 2022.

The company, headed by CEO Amjad Bseisu, reported a net loss

of $31 million in 2023 and a net debt of $481 million, compared

with $717 million a year earlier. Its current market

capitalization is around 307 million pounds ($382 million).

EnQuest ( ENQUF ) also announced in March its first shareholder

distribution in the form of a $15 million share repurchase in

2024.

Shares in the company were up 0.1% early on Tuesday.

The Golden Eagle project is operated by Chinese-owned oil

and gas firm CNOOC and includes the producing Golden

Eagle, Peregrine, and Solitaire fields.

When the purchase was announced in February 2021, Chief

Financial Officer Jonathan Swinney had said it would earn

EnQuest ( ENQUF ) around $13 million a month. The company also completed a

$750 million debt refinancing in June 2021 to support the

purchase.

EnQuest's ( ENQUF ) website says Golden Eagle still has "significant

development potential, including further sub-sea and platform

infill drilling, with an anticipated field life extending into

the early 2030s."

($1 = 0.8033 pounds)