Hibiscus to Capitalize on Lower Service Rates for 2015 Drilling Operations
Malaysia's oil and gas exploration and production firm Hibiscus Petroleum Berhad plans to seize opportunities presented by the decline in service rates resulting from the current low oil price environment as it carries out its 2015 work program, a top company executive said, as quoted in local daily The Star Friday.
Firms such as Hibiscus hopes to benefit from the decline in service rates, including day rates for rigs as it has several drilling projects planned this year.
Among the drilling operations planned for 2015 are exploration wells in the Sharjah concession in the United Arab Emirates and the Sea Lion prospect in permit VIC/P57 offshore Australia, Hibiscus revealed in a company presentation earlier this month.
The company will also conduct drilling at Oman's offshore Block 50 and two development wells at the West Seahorse field in Permit VIC/L31 offshore Australia, while it is part of a joint venture drilling in PL 591, PL 708 & PL 616 licenses offshore Norway.
"The drilling climate is extremely attractive right now, with drilling rates down by 25 percent compared to the same period last year. Therefore, as subscribers to services, we see this as an opportunity. A year ago, we could only drill four wells but today, given the generally low service company rates, we could be drilling five wells,” Managing Director Dr Kenneth Pereira commented at a luncheon talk organized by MIDF Investment Bank Bhd.
Meanwhile, Hibiscus is optimistic about achieving its five-year reserves target of 100 million barrels as it already has 12.3 million barrels.
“Therefore, with the five wells to be drilled this year, we would be seeing more than 100 million barrels in reserves,” he Pereira added.
Looking ahead, the Hibiscus managing director believed that that falling oil prices are cyclical and the oil and gas industry would adapt to the circumstances.
“We believe that in the mid-term, the oil price will go up, according to expert consensus ... Prices would start turning favorable towards the second half of this year, as supply and demand slowly find an equilibrium,” Pereira said.
The current oil price environment present acquisition opportunities for the company and Hibiscus would focus on securing upstream assets in areas that are geopolitically stable.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- These Factors Helped Brent Oil Price Break Above $85
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Gaz System to Acquire Gas Storage Poland
- Subsea7 Secures Contract to Service Woodside's Trion
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- EIA Boosts USA Crude Oil Production Forecasts
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension