Work to repair constrained production issues at the Hibiscus Petroleum Anasuria FPSO are nearing completion.
Engineering and procurement activities are “currently on-going on a fast-track basis”, and are due to warp up in the third quarter of the calendar year, the Malaysian-headquartered operator has confirmed.
During an offshore turnaround of the Anasuria in April/May last year, a critical component of the subsea infrastructure – relating to the production riser that transports crude to the vessel – malfunctioned.
Since then it has been “isolated”, resulting in a lower overall daily production rate from the firm’s flagship FPSO.
Until the failed component is returned to service, Hibiscus expects there to be an impact on opex per barrel of oil equivalent (boe) and 2022 offtake volumes.
An update will be given on the production impact of the fault once the project schedule for rectification works has been finalised.
Costs relating to the repair works were included in Hibiscus’ cost of sales, which totalled around £6.3 million for three months up to March.
Despite the impact, Hibiscus said in its third quarter 2022 results that the UK segment of the business achieved “healthy profit margins”.
During the three month period, gross profit and earnings before interest, tax, depreciation and amortisation (ebitda) totalled £28m and £23m respectively.
Across the whole business, pre-tax profits were £59m, up from £11m in the same period in 2021, while revenue amounted to £53m.
Hibiscus has also issued an update on its Teal West project on the North Sea Transition Authority’s (NSTA) energy pathfinder portal.
Alongside partner NEO Energy, the company recently said it is moving forward with plans for the four million-barrel scheme in the central North Sea on an “accelerated schedule”.
It will be a tieback to the Anasuria FPSO, around 108 miles east of Aberdeen, consisting initially of one production well, and potentially a water injection well and further production well.
Having dished out four contracts for Teal West in the last few months, a further deal, worth less than £25m, for SURF installation services is due to tender in October.
Hibiscus holds a 70% stake in the Teal West discovery, with NEO holding the remaining stake.
Teal and Teal South are already two producing fields as part of the Anasuria cluster linked to the namesake FPSO.