Hibiscus Petroleum (KLSE: HIBISCS) has hit a key milestone on the road to developing the Teal West project in the UK North Sea.
The Malaysia-owned operator has handed in an environmental statement for the four million-barrel development, with multiple phases planned.
Hibiscus said the project would “contribute to the national need for hydrocarbon production in the short term” for the UK, noting the geopolitical climate which has “caused a wave of uncertainty surrounding supply of hydrocarbons both within the UK and abroad”.
Kuala Lumpur-listed Hibiscus said Teal West is expected to have a production life of 10 years and, in the high production case, reach a total of 10.4 million stock tank barrels of oil and 9.8 billion standard cubic feet of gas.
The firm has previously put its best-estimate recoverable resources from Teal West at four million barrels.
Teal West is planned over three stages as a tie-back to the Anasuria FPSO, with two production wells and a single water injection well.
Oil will be exported via tankers and produced gas will be sent to shore via the Fulmar pipeline.
Phase 1 would see drilling of the first production well and installation of a two-mile pipeline to the FPSO.
Depending on the success of Phase 1, the next stage would involve drilling of the water injection well, and if potential for high production volumes is shown then Phase 3 would see a second production well tied to the FPSO.
The project is being developed via Hibiscus’ subsidiary, Anasuria Hibiscus UK, who said drilling of the first well for Teal West is scheduled to start in Q3 of 2023, with the aim of first oil in Q2 2024.
If successful, the water injection well and second production well are planned for Q3 2025 and Q1 2027 respectively.
Emissions
Life of field emissions are expected to be 123,563 tonnes of CO2 equivalent from drilling rigs and vessels.
Hibiscus said the figure compares to 782,000 tonnes from commercial fishing and 4.5 million tonnes from coastal shipping in the UK in 2019 alone.
The highest single release of emissions in a year from Teal West is expected to be 76,000 tonnes – 1.3% of emissions from commercial shipping in 2019.
During operations, emissions will drop to 20,000 tonnes per year.
Anasuria Hibiscus is 70% owner and operator of the Teal West field, partnered with NEO Energy which holds the remainder.
The project lies around 95 miles north-east of Peterhead.
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