Malaysian oil and gas exploration and production company Hibiscus Petroleum Bhd is aiming to double its oil output in the U.K. and Malaysia to 20,000 barrels per day (bbl/d) by 2021, a senior company executive said Sept. 27.
It needs an additional $50 million by 2020 to boost production from about 10,000 bbl/d now, Kenneth Pereira, managing director of the company, told reporters.
"That's our maximum negative cash flow for projects already identified and that's based on a $60 per barrel oil scenario," he said.
"So at $70 per barrel oil, it will be something like $40 million."
The company, which develops small oil and gas fields in Asia, has two major producing assets.
One is the Anasuria Cluster in the North Sea in the U.K. The other is in Malaysia, the 2011 North Sabah production sharing contract, which includes the Labuan crude oil terminal.
It also owns a discovery in Australia that has not produced first oil yet, Pereira said.
Hibiscus has a 10-year marketing and offtake agreement with BP Oil International to sell crude from the North Sea, and a three-year agreement to sell crude from the Malaysian oil field to commodity trader Trafigura.
Recommended Reading
Global Oil Demand to Grow by 1.9 MMbbl/d in 2024, Says Wood Mac
2024-02-29 - Oil prices have found support this year from rising geopolitical tensions including attacks by the Iran-aligned Houthi group on Red Sea shipping.
Liberty Energy CEO: NatGas is Here to Stay as Energy Transition Lags
2024-03-27 - The energy transition hasn’t really begun given record levels of global demand for oil, natural gas and coal, Liberty Energy Chairman and CEO Chris Wright said during the DUG GAS+ Conference and Expo.
Tinker Associates CEO on Why US Won’t Lead on Oil, Gas
2024-02-13 - The U.S. will not lead crude oil and natural gas production as the shale curve flattens, Tinker Energy Associates CEO Scott Tinker told Hart Energy on the sidelines of NAPE in Houston.
API Gulf Coast Head Touts Global Emissions Benefits of US LNG
2024-04-01 - The U.S. and Louisiana have the ability to change global emissions through the export of LNG, although new applications have been frozen by the Biden administration.
Exclusive: Chevron Balancing Low Carbon Intensity, Global Oil, Gas Needs
2024-03-28 - Colin Parfitt, president of midstream at Chevron, discusses how the company continues to grow its traditional oil and gas business while focusing on growing its new energies production, in this Hart Energy Exclusive interview.