Hibiscus Petroleum plans to move ahead with its Marigold project in the UK North Sea next year, with safeguards against delays around Covid-19.
The Malaysian firm’s UK subsidiary, Anasuria Hibiscus, is putting work out to tender, but asked contractors for “long validity periods” to avoid the need to re-bid “should project execution be delayed due to unfavourable business conditions”.
Marigold is planned as three-well subsea tie-back to an FPSO which, combined with the Sunflower field, is thought to contain 60million barrels of oil.
Front-End Engineering Design (FEED) studies are underway on Marigold, the first phase of the FPSO project, seeking approval from the Oil and Gas Authority at the end of this year.
Publishing the information on the OGA website, Hibiscus said: “The current Covid-19 pandemic and the fall in the oil price with differing forecasts for recovery to a level to sustain development has created a level of considerable uncertainty as to financing of developments with the knock on effect of impact on supply chain contracting.
“Project execution will commence in 2021 provided that the business environment has stabilised.”
Marigold and Sunflower lie 155 miles north-east of Aberdeen.
Hibiscus bought a 50% in both fields from India’s Aban Offshore for £28.5 million in 2018.
The Crown discovery, acquired from United Oil and Gas last year, may also be amalgamated to Sunflower in the second phase, adding another 4-8m barrels.
Hibiscus’ other UK North Sea interests are in the Anasuria Cluster, 110 miles east of Aberdeen, comprised of the Teal, Teal South, Guillemot and Cook fields, which produce to the Anasuria FPSO.
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