Malaysia-based operator Hibiscus Petroleum plan to develop its Marigold and Sunflower fields using a floating production, storage and offloading vessel has been given early clearance by UK authorities.

Hibiscus said in a trading update on Thursday that a concept selection report was submitted to the UK Oil & Gas Authority (OGA) in August and last month it received a “letter of no objection” from the regulator.

Hibiscus said it screened 34 development scenarios.

“[The FPSO] concept provided the highest project value with the lowest execution and commercial risk. It will also facilitate a phased development approach to further mitigate project risks,” Hibiscus said.

The development is operated by Anasuria Hibiscus, a wholly owned subsidiary of Hibiscus.

Work is being carried out in Kuala Lumpur supported by a small team in Aberdeen and the operator said it still plans to finalise a field development plan by the end of 2020.

The unit last year acquired a 50% interest for $37.5 million in Block 15/13a, which holds Marigold, and Block 15/13b, home to Sunflower, from Aban Offshore subsidiary Caldera Petroleum, which held on to the other 50%.

Anasuria Hibiscus signed a preliminary deal to acquire a 100% interest in blocks 15/18d and 15/19b, where the Crown discovery is located, from United Oil & Gas and Swift Exploration for $5 million

The blocks are located 250 kilometres north-east of Aberdeen. Water depths are 140 metres.

Independent analysis has put the fields' contingent resources 60 million barrels.

The project is expected to proceed in two phases to “mitigate subsurface uncertainties and minimise capital outlay required to achieve first oil production”.

Phase one will see the development of Marigold, the larger of the fields.

Phase two will feature additional wells in Marigold, along with wells in Sunflower and Crown, pending completion of that deal.

"For the next 12 months, our goal remains to high grade the contingent resources of the Marigold and Sunflower discovered fields into producible proven and probable reserves through the preparation of a field development plan," the company said.

Upstream reported earlier Hibiscus earlier awarded a pre-front-end engineering and design contract to London-based Genesis Oil & Gas.

Hibiscus specialises in operating older assets and was listed in 2011 on the main market of Bursa Malaysia.

It is already an operating partner in the Anasuria Cluster of fields in the UK North Sea, which produce through the Anasuria floating production, storage and offloading vessel.

Hibiscus is a 50:50 partner in the Anasuria Operating Company with fellow Malaysian company Ping Petroleum. The pair agreed a $105 million takeover deal from Shell and ExxonMobil in 2016.

Four fields feed into the FPSO — Teal, Teal South, Guillemot A and Cook.

Cook is operated by Ithaca Energy, with the Anasuria partners owning a 38.6% interest.

Field Development

Hibiscus targeting FPSO for Marigold and Sunflower