Hibiscus Petroleum Makes Oil Discovery in Malaysia-Vietnam Agreement Area - Rigzone News

Hibiscus Petroleum Makes Oil Discovery in Malaysia-Vietnam Agreement Area | Rigzone

Hibiscus Petroleum Makes Oil Discovery in Malaysia-Vietnam Agreement Area

Hibiscus Petroleum Bhd. has declared a discovery in the offshore Malaysia-Vietnam agreement area, expecting to put the well into production this month.

Hitting up to 46 meters (150,919 feet) of potential oil column, Bunga Aster-1 is the second “significant discovery” within a year in the PM3 Commercial Arrangement Area Production Sharing Contract (PM3 CAA PSC), following the Bunga Lavatera discovery in 2023, the Kuala Lumpur-based company said in a press release.

The rig encountered 17.5 meters (574,147 feet) of oil-bearing sandstone. “Initial assessments indicate good reservoir characteristics”, Hibiscus Petroleum said.

“The decision to drill the well from the existing Bunga Orkid-D platform has successfully enabled quick monetization of this discovery”, the independent exploration and production company said. “First oil production is expected to commence in May 2024”.

Bunga Orkid is one of seven already producing fields in the Malaysia-Vietnam PSC. The others are Bunga Kekwa, Bunga Lavatera, Bunga Pakma, Bunga Raya, Bunga Seroja and Bunga Tulip, according to Hibiscus Petroleum.

“The Company has plans to continue exploring other near-field prospects in the PM3 CAA PSC in the next three years, working together with various stakeholders, under the stewardship of Malaysia Petroleum Management, Petroliam Nasional Berhad (PETRONAS)”, the announcement said.

Hibiscus Petroleum is the operator of the license with a 35 percent stake through Hibiscus Oil & Gas Malaysia Ltd. The partners are Petronas Carigali Sdn. Bhd., a subsidiary of Malaysia’s state-owned Petronas, and Vietnam’s state-owned PetroVietnam Exploration Production Corp. Ltd.

Hibiscus Petroleum, which also has assets in Australia and the United Kingdom, entered the Malaysia-Vietnam lease area some three years ago with the $123.7-million acquisition of Fortuna International Petroleum Corp. Besides the 35 percent stake in the PM3 CAA, the acquisition also gave Hibiscus Petroleum 60 percent stakes in Malaysian licenses PM305, PM314 and Kinabalu Oil PSC, as well as a 70 percent stake in Vietnam’s Block 46. “Our average daily oil and gas production is projected to increase almost threefold”, Hibiscus Petroleum said January 25, 2022, announcing the completion of the acquisition.

The PM3 CAA, where Southeast Asian neighbors Malaysia and Vietnam have overlapping claims, has been extended for 10 years to 2027, as announced by Petronas May 9, 2016.

Hibiscus Petroleum had a net average daily oil and condensate production of 3,068 barrels per day (bpd) in the area in the financial year ended June 2023. The PSC holds proven and probable (2P) oil reserves of 5.7 million stock tank barrels and 2P gas reserves of 64.8 billion cubic feet.

In the quarter ended December 2023 (second quarter of the financial year 2024), the company’s net production in the area exceeded 22,000 barrels of oil equivalent (boe) per day, according to Hibiscus Petroleum’s quarterly financial report February 20, 2024.

It sold 1.2 million barrels of oil and condensate and 700,000 MMboe of gas during the three-month period.

“The Group estimates to sell a total of 7.7 MMboe for FY2024, which is in line with the guidance of approximately 7.5 to 7.8 MMboe provided earlier”, Hibiscus Petroleum said at the time. Its sales volumes in the prior financial year totaled 7.1 MMboe.

To contact the author, email jov.onsat@rigzone.com

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