Buys Malaysian oil firm for up to $23 mln

* Applies to work in Norwegian North Sea

* Says 2012 output to be in middle of guidance

LONDON, Nov 9 (Reuters) – North Sea-focused oil firm EnQuest said it would seek long-term growth outside of its core British production area, buying a Malaysian company, as it forecast oil output for the year in line with its guidance.

EnQuest, which has had a sole focus on Britain since being spun-out of Petrofac in 2010, said on Friday it would pay an initial $3 million plus up to $20 million more to acquire Malaysia’s Nio Petroleum, a company with oil discovery as well as exploration targets.

In addition to Malaysia, EnQuest said it has also applied to work in the Norwegian part of the North Sea.

“We have announced our first steps outside of the UK North Sea, preparatory moves to replicate our existing model by targeting previously underdeveloped assets in a small number of other maturing regions,” Chief Executive Amjad Bseisu said.

Existing operations in Britain will deliver average oil production in the middle of the company’s 20,000 barrels of oil equivalent per day (boepd) to 24,000 boepd guidance, EnQuest said.

The company said it will also move to take advantage of a tax break recently introduced by the British government to extend the life of its Thistle oil field, adding that its new project, the Alma/Galia development, was on schedule to start producing oil in the fourth quarter of next year.

http://uk.reuters.com/article/2012/11/09/enquest-brief-idUKL5E8M92DY20121109