Hibiscus looking for partner to develop drilling infrastructure in Australia

KUALA LUMPUR (March 20): Hibiscus Petroleum Bhd is looking for a partner in developing a drilling infrastructure in the Australian market in the next two to three years.

“We would like to explore the opportunities before deciding on the development concept of the field in Australia,” Managing Director Dr Kenneth Pereira told reporters on the sidelines of Invest Malaysia 2019 here today.

He said for the Australian market, Hibiscus has a high equity interest in both of its licences, of which the oil and gas exploration company’s equity for VIC/P 57 stands at 78%, while that for VIC/L 31 at 100%.

“So, if anyone wishes to partner us to develop our Australian assets, we would certainly consider,” he said.

The VIC/ L 31 is the development licence for West Seahorse field, Australia.

In its previous announcement to Bursa Malaysia, Hibiscus said that the group has only limited access to capital means that investment related activities are prioritised, with those projects that deliver larger economic benefits being implemented ahead of those which promise lower levels of return.

Given the expected capital requirements for low risk, identified projects within the Anasuria Cluster in the United Kingdom and North Sabah, the management may defer seeking a Final Investment Decision or seek an alternative solution for its development offshore Australia.

Commenting on the oil price, he said that the company is comfortable with the current price of between US$65 and US$70 per barrel.

“Going forward we expect it to stabilise at the current level,” he said.

Overall, the company has set a target to execute production enhancement projects that could potentially enhance its net oil production rate to 12,000 barrels per day by 2021, from 8,500 barrels per day.

Asked if Hibiscus is on track to achieve its target, Pereira said even though the company is capable of achieving the target with the current capacity organically, he is also open to acquisition activity as an alternative. — Bernama

Source: TheEdgeMarkets