Malaysia's Hibiscus Petroleum Berhad's wholly-owned subsidiary Gulf Hibiscus Limited clinched the South East Ras El Ush concession (Block 2) in the southern Gulf of Suez, Egypt from the Ganoub El-Wadi Petroleum Holding Company (Ganope) -- an entity of Egypt's Ministry of Petroleum, the company said in an announcement on local stock exchange Bursa Malaysia Tuesday.
Gulf Hibiscus successfully bidded for Block 2 with Pacific Oil Limited in a 50:50 joint venture, with the latter acting as operator of the concession to leverage on its management team’s experience in the country.
The offshore concession, covering an area of 26 square miles (68 square kilometers) in water depth of up to 246 feet (75 meters), is surrounded by development leases.
Block 2 contains the discovered West Ashrafi field, which is included in the concession, and may be developed with a production tie-in to the nearby existing onshore infrastructures. Commercial oil and gas were found at two wells that were previously drilled in the West Ashrafi field.
"The award is subject to the execution of a definitive agreement. Gulf Hibiscus’ financial exposure to undertake the minimum work commitment is estimated to be approximately $8 million over the first 4 years (first exploration phase)," Hibiscus Petroleum said in the release.
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