Malaysian late-life field specialist Tamarind Resources secured its maiden oilfield asset earlier this year and now has its hands full following a second breakthrough transaction, writes Russell Searancke.

Tamarind arrived on the scene in August 2014 with the message that it would apply its wealth of oil and gas experience and skills to develop, operate, improve and ultimately abandon fields in Southeast Asia and Australasia.

Within two years, two important strategic partnerships had been sealed; one in Australia with local company Triangle Energy, the other in Papua New Guinea with South Pacific Resources, although neither constituted a field acquisition.

That all changed in late 2016, when Tamarind agreed terms with the three previous owners of the mature Tui Area oil complex off New Zealand.

Tamarind paid an upfront sum of US$2.65 million for the asset, and in return received completion payments of US$18.35 million comprising cash, assets and inventory.

Tamarind also inherited the future field abandonment liabilities.

Ian Angell, the company’s chief executive, is delighted with the purchase of Tui, which is now producing oil under Tamarind’s leadership.

“There are three things about Tui,” he says. “First, we believe there is additional reserve potential, and that is currently being studied. We will look at introducing new capital for new wells.

“Second, we think there is an opportunity to consolidate operations with (the nearby) Maui and Maari fields. They’re doing well with helicopters and supply boats but we think this can be further explored. And third, if we do all those things the abandonment shifts to the right and that is our objective.”

The major contractor at Tui is BW Offshore, the owner of the Umuroa floating production, storage and offloading vessel, with Swire Pacific providing vessel support, while Tamarind has contracted downhole specialist Well Experts for well and abandonment support.

“Our aim is to be a very active operator, we’re going to be on the facilities, with our sleeves up, bringing our experience to bear,” says Angell, an ex-Talisman veteran and resident of Kuala Lumpur and Singapore since 2000.

Tamarind’s second asset is the mature Cliff Head oil project off Western Australia, which includes the Arrowsmith onshore oil processing plant.

Tamarind will be appointed operator of the offshore facilities and onshore plant once Triangle Energy completes its acquisition of the remaining interest in Cliff Head from Roc Oil.

As a part of the deal with Triangle, Tamarind will be an equity partner in the asset by exercising certain options and warrants.

The motivation for Cliff Head was similar to Tui — there were interesting technical and commercial angles.

On Cliff Head, there are enhanced oil recovery and appraisal well possibilities, and Tamarind felt it could assist Triangle to rejuvenate activity in the Perth basin, particularly if the Arrowsmith plant can be a common tolling facility.

“In Australia and Southeast Asia, the industry has not been good at shifting the cost structure as basins mature,” says Angell. “So we saw that Cliff Head could drive that, especially with the benefit of the Arrowsmith plant, which could process most of the oil in that area, so that’s a piece of plant to focus on.”

Tamarind is not, he stresses, a company that targets mature assets only.

“We’re a non-exploration oriented company focused on discovered and producing resources,” he says.

While its hands are full right now, it is keeping an eye out for future opportunities in Southeast Asia and Australasia including Malaysia, which as well as being a great home is likely to see asset disposals in the future.

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Busy Tamarind still eyeing opportunities