PETALING JAYA: Oil and gas exploration and production group Hibiscus Petroleum Bhd along with with Ping Petroleum UK PLC have each entered into a separate but identical farm-in agreements to take a 42.5% equity interest each in Licence P2451 with Rapid Oil Production Ltd.
Hibiscus said in its filing with Bursa Malaysia today the licence holds an undeveloped oil field, Fyne Field, located in the Central North Sea, UK, with an estimated 75 million barrels of oil equivalent (MMboe) of stock tank oil initially in place.
The field has a water depth of about 90m and is approximately 16km from Hibiscus’ Anasuria floating production storage and offloading (FPSO) vessel.
Under the terms of the agreement, its indirect wholly-owned Anasuria Hibiscus and Ping Petroleum (an indirect subsidiary of Dagang NeXchange Bhd or DNeX) shall separately acquire the equal equity interest in the licence, with the balance 15% remaining with Rapid Oil.
“The plan is to initially tie-back a single well development to the FPSO vessel. Upon completion of the proposed acquisition, Anasuria Hibiscus shall be appointed as operator of the field development,” Hibiscus said in its filing..
It expects first oil in 2026, whereupon Anasuria Operating Company Ltd (equally owned by Anasuria Hibiscus and Ping Petroleum) will take over as operator of the Fyne production from Anasuria Hibiscus.
The addition of the Fyne Field is expected to increase the value and extend the field life of the existing Anasuria cluster of assets, it added.
The Anasuria cluster comprises a portfolio of producing, appraisal and exploration licences in the UK North Sea, 175km east of Aberdeen.
The cluster comprises Teal, Teal South, Guillemot A where Hibiscus and Ping Petroleum UK hold 50% interest in each field through Anasuria Operating Company Ltd, and Cook field where the parties have a 19.3% interest.
These fields are serviced by the Anasuria FPSO host platform, located at a water depth of 94m. Both parties also have an equal stake of 50% in the ownership of the Anasuria FPSO
In a separate statement, Ping Petroleum managing director Zainal Abidin Jalil said the acquisition of the Fyne Field asset is a significant contribution to the company’s portfolio.
He highlighted how Fyne’s integration into their existing infrastructure at Anasuria extends the field life, improves the value of its ongoing integrity and asset life-extension work.
“We also look forward to expanding our long-term partnership with Hibiscus Petroleum, as well as working with our new joint venture partner Rapid Oil,” Zainal added.
The deal is subject to approval by the North Sea Transition Authority.
At closing today, Hibiscus Petroleum was up 6.5 sen or 6.81% to RM1.02 with a market capitalisation of RM2.04 billion.
DNeX also closed higher by 1.5 sen or 3.33% at 46 sen with a market capitalisation of RM1.47 billion.