UK Regulator Greenlights North Sea Oil Field Farmout

Friday, October 13, 2023

Malaysian oil and gas company Hibiscus Petroleum has received UK regulator approval to acquire a stake in a UK North Sea license from Rapid Oil, as proposed in late August 2023.

Hibiscus Petroleum's subsidiary Anasuria Hibiscus, and Ping Petroleum on August 30, 2023, each entered into a separate but identical Farm-in Agreement for Licence P2451 with Rapid Oil.

Under the terms of each farm-in agreement, Anasuria Hibiscus and Ping Petroleum would separately acquire 42.5% equity interest each in the license, with the balance of 15% remaining with Rapid Oil.

The license holds an undeveloped oil field, Fyne Field, located in the Central North Sea, United Kingdom.

Hibiscus Petroleum said Friday that the UK oil and gas regulator, the North Sea Transition Authority (“NSTA”) had approved the proposed acquisition on October 11, 2023, subject to certain conditions.

The conditions are that the Deed of Assignment for the legal transfer of the farm-in interest from Rapid Oil to Anasuria Hibiscus is executed in a form approved by the NSTA; the proposed acquisition as approved is completed by January 9, 2024; and the NSTA is notified within two weeks of the completion of the proposed acquisition.

The Fyne Field, located in the Central North Sea, United Kingdom, has an estimated 75 MMboe STOOIP (stock tank oil initially in place.) Upon completion of the proposed acquisition, Anasuria Hibiscus would be appointed as the operator of the field development. First oil is expected in 2026, whereupon Anasuria Operating Company Limited (equally owned by Anasuria Hibiscus and Ping Petroleum) would take over as operator of the Fyne production from Anasuria Hibiscus.

The Fyne Field sits at a water depth of about 90 meters. As it is approximately 16 km from the Anasuria Floating Production Storage and Offloading (“FPSO”) vessel, the plan is to initially tie back a single well development to the FPSO vessel.  The addition of the Fyne Field is expected to increase the value and extend the field life of the existing Anasuria Cluster of assets, Hibiscus said. 

Categories: Energy North Sea Industry News Activity Europe UKCS

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