Malaysian operator Hibiscus Petroleum has pushed back a final investment decision on the Marigold development in the UK North Sea.

The company had been slated to sanction the development by the end of this year, however due to delays largely as a result of the Covid-19 pandemic, Hibiscus revealed a decision had now been pushed back until the end of March next year.

It comes as the operator remains in pre‐submission discussions with the UK’s Oil & Gas Authority to ensure the Marigold field development plan meets their requirements before the final submission is made later this month.

The delays to the submission of the development plan and investment decision also has implications for last year’s acquisition of blocks 15/18d and 15/19b, which contain the Crown discovery.

Hibiscus bought the blocks, collectively held under license P2366, from United Oil & Gas and Swift Exploration last year for a total cash consideration of $5 million.

Hibiscus said on Friday that, due to the delays, an additional sum of $3 million — which is due within seven business days of approval of the Marigold field development plan — is now expected to be made at the end of the first half of 2021.

However, should the field development plan not be approved, Hibiscus said it could — at its discretion — still proceed with the $3 million payment or instead transfer license P2366 back to the sellers for a “nominal consideration”.

Given its proximity to Marigold, Hibiscus’ current development plan for the Crown discovery is based on a single well subsea tie-back to the Marigold field.

Hibiscus also holds a 50% operated interest in licence P198 blocks 15/13a and 15/13b containing the Marigold and Sunflower oilfields.

The company has previously placed the best estimate gross contingent resources at Marigold and Sunflower at 49.8 million barrels and first oil is anticipated in 2023.

The first phase of development will see three wells drilled at Marigold and tied back to a floating production, storage and offloading vessel, with additional wells at Marigold and Sunflower, along with Crown, anticipated in the second phase.

Field Development

Late bloom for Marigold: Hibiscus pushes back investment decision on North Sea development