Hibiscus secures five more offshore licences

by **Cals** Thu 23 Jan 2014, 18:33

Business & Markets 2014

Written by Fatin Rasyiqah Mustaza of theedgemalaysia.com

Thursday, 23 January 2014 09:54

KUALA LUMPUR: Hibiscus Petroleum Bhd, through its jointly owned entity Lime Petroleum Norway AS (Lime Norway), has secured five new offshore licences in the latest bidding round by the Norwegian ministry of petroleum and energy.

Hibiscus said Lime Norway’s stakes in the five offshore licences range from 12.5% to 25%. Lime Norway, in which Hibiscus has a 35% stake via Lime Petroleum plc, has to date secured 12 licences in total for exploration and production rights in the Norwegian continental shelf (NCS).

Hibiscus group managing director Dr Kenneth Pereira said the latest licence awards will expand Lime Norway’s presence in the country, barely a year after the company obtained its per-qualification as a licensee for the NCS.

“Undoubtedly, 2014 will see more Norwegian-focused activities as we build upon the extensive groundwork performed by Lime Norway in understanding the local geology,” he said in a statement yesterday.

New licences offered to Lime Norway consist of PL 498 B (25%); PL 503 C (12.5%); PL 762 (20%); PL 769 (205); and PL 770 (20%). Acceptance of the licences is subject to the formal approval of Lime Norway’s board of directors.

Lime Norway’s stakes for the previous seven licences ranged from 5% to 25%.

Pereira said Hibiscus has already secured adequate financing to fulfil its work commitments for at least one year. “We look forward to extracting value from our growing asset base in one of Europe’s most prolific petroleum basins.

“We will continue to build our presence in the country particularly, as attractive fiscal terms offered under the Norwegian Petroleum Tax Act allow us to apply for a cash tax refund of 78% for exploration costs annually,” he added.

Lime Norway chief executive director Ivar Aarseth said the company is pleased to be awarded several of the licences which were identified using the direct hydrocarbon indicator, Rex Virtual Drilling.

“We look forward to working with established operators in the mature Norwegian Continental Shelf exploration and production arena, a well-known oil-prolific region,” he added.

Meanwhile, Lime Norway’s board has approved an increase in its stake in PL 498, located in the North Sea, from 5% to 25%. The transaction is pending the approval of the Norwegian government.

Norway is the world’s third largest gas exporter and sixth largest oil exporter with more than 5.32 billion barrels in proven oil reserves. Its continental shelf is among the most active in the world’s oil and gas arena.

This article first appeared in The Edge Financial Daily, on January 23, 2014.