KUALA LUMPUR: Dagang NeXchange Bhd's Ping Petroleum UK PLC has added another three licenses to its North Sea portfolio.
Ping Petroleum acquired three fields: Glenn, Hutton, and Pilot, which were part of the 33rd licensing round in the UK. Ping Petroleum bought an 81.25 per cent stake in the Pilot field from Orcadian Energy.
These fields are part of license numbers P2612 (Glenn), P2626 (Hutton), and P2244 (Pilot). With these new fields, Ping's portfolio in the UK Continental Shelf now has over 100 million barrels of oil equivalent (MMboe) in the central North Sea.
Ping Petroleum also aims to revitalise the historic Hutton field in the Northern North Sea, it said in a filing with Bursa Malaysia.
Ping Petroleum Managing Director Zainal Abidin Jalil said the company now plans to embark on subsurface and engineering studies to assess the best development concepts with respect to the maximum efficient rate (MER), while aligning with its energy transition strategy.
"We anticipate these projects will potentially come to first oil soon after the projected end of the Energy Profits Levy (EPL)," he added.
Zainal said the Glenn field offers the company a chance to add value to its Avalon field by adding another reservoir, enabling it to continue its strategic focus on the MER.
"Hutton provides a different challenge for us, as it is located in deeper water and a harsher environment. Further subsurface work needs to be completed prior to a high-level recovery concept being put forward," he said.
Zainal said this provides an excellent opportunity for Ping to find an innovative and environmentally cognisant solution to extract remaining value from the field.
On the pilot field, Zainal said the Orcadian Energy, together with energy data firm TGS, had worked the subsurface of the area for several years.
"We believe some simplification of the development concept and a phased approach can provide an economical solution," he said.
Hutton, which was discovered in 1973, produced oil through the1980s and 1990s before it was shut in 2001.
Meanwhile, Ping's Malaysian operation continues to progress its three licences with the first development expected to deliver first oil next year.
The company employs an outsourced model, enabling it to maintain efficiencies while backing local service providers and fostering information exchange between its two offices.-ends-