First of five planned production wells comes online offshore Malaysia

Hibiscus Petroleum, a Malaysian independent oil and gas exploration and production company, has achieved the first oil from the first well in its multi-well program at a field off the coast of Malaysia. The company anticipates a further ramp-up in production with the progressive start-up of other oil wells in the ongoing drilling campaign.

Hibiscus’ SF30 waterflood Phase 2 development project was brought on stream on October 31, 2024, following the completion of the production enhancement and idle well reactivation (PE IWR) for the South Furious campaign, achieving 1.8 kbbl/day and surpassing the planned 1.2 kbbl/day production.

The project is situated in the North Sabah production sharing contract (PSC), which is operated by SEA Hibiscus and located 33 km from Kota Kinabalu, Malaysia. This PSC encompasses St Joseph, South Furious, SF30, and Barton producing fields, where Hibiscus Petroleum holds operated 50% interest and Petronas Carigali has the remaining 50% stake.

The operator describes the first oil achievement from the SF30 waterflood Phase 2 project as “an important milestone.” The well D10 was the first one of five planned oil producers to come online, drilled from the newly installed SFJT-D wellhead platform in the South Furious field.

The gradual commissioning of the other oil wells in the drilling program is expected to result in a production boost. According to Hibiscus, six water injection wells will then be drilled, supported by a water injection facility (WIF), currently undergoing conversion in Malaysia with a targeted start of water injection in mid-2025.

The average gross oil production is said to be lower than the figures recorded in the quarter that ended on June 30, 2024, because of the unavailability of St Joseph’s compressor from June 2024 until early October 2024 and platform shutdown for SF30 rig entry. The SF30 waterflood Phase 2 development project includes the drilling of five oil wells and six water injectors in 2024.

The planned shutdowns in four assets – PM3 CAA, Kinabalu, North Sabah, and Anasuria – resulted in the production of an average of 16,707 boe/day of oil, condensate, and gas net to Hibiscus for the quarter ended on September 30, 2024. However, the output has increased in the meantime, hitting an average of 27,300 boe/day in October 2024.

Hibiscus Petroleum recently expanded its portfolio by acquiring the Brunei affiliate of France’s TotalEnergies to solidify its position as an independent E&P player in the ASEAN region. The firm also confirmed a new lease on life for decommissioned oil field infrastructure thanks to a rig-to-reef project offshore Malaysia.