Introduction

The North Sabah PSC was awarded in November 1996. It took effect retrospectively from 1 January 1996, replacing the expired 1976 Sabah Shell PSC. The revised contract covered four offshore producing oil fields located along the coast of Sabah. Three of these fields are still onstream. Oil is transported via a series of pipelines linking the fields to a terminal on Labuan Island. Around 10 exploration wells have been drilled on the PSC, some of which have identified incremental oil discoveries. 

The North Sabah project was launched in 1979 and shell was the operator. In 2011, Petronas launched an enhanced oil recovery (EOR) program for mature fields and added an enhanced oil recovery clause to the original production-sharing contract, which was extended until 2040 (originally due to expire in 2019).In 2015, affected by low oil prices, shell decided to make a strategic shift and sell its full 50% interest in the project to Hibiscus.

The project includes four oil fields -- St Joseph, South Furious, SF30 and Barton -- in addition to a crude oil dock (Labuan), 135 Wells and 20 platform buildings.In 40 years of production, has experienced flexible mining and water injection, gas injection mining.Details of the oil field are as follows:

South Furious: the oil field was discovered in 1974 and brought on stream in 1979.Satellite development was carried out in 1996 and SF30 satellite oilfield was successfully developed in 2001.

St Joseph: the field was put into production in 1981. Before 1995, the field was developed through flexible production.In 1996, due to the decline of production capacity, the oil field applied the gas injection method. In the later stage, in order to avoid the decline of production capacity, shell adopted the water injection method and upgraded the oil field, including 6 horizontal injection Wells and 5 infill production Wells.

Barton: the company started production in 1982 in water depths of about 130 feet and produced intermediate crude oil (API 32 degrees). It began waterflooding in 2002.

SF30: the field began production in 2001 and is adjacent to South furious, a satellite field of the latter.

In October 2016, SEA Hibiscus entered a conditional sale and purchase agreement (SPA) with Sabah Shell Petroleum Company and Shell Sabah Selatan (Shell).

The SPA was executed to acquire Shell’s participating interests in the PSC between Petroliam Nasional Berhad (Petronas), Shell and Petronas Carigali for the total purchase consideration of $25m.The deal also includes the JOA between Shell and Petronas Carigali.

In April 2018,Hibiscus Petroleum Bhd announced may spend roughly US$55 million (about RM212.54 million) on capital expenditure (capex) for its North Sabah Enhanced Oil Recovery Production Sharing Contract (PSC) over the next three years to increase Hibiscus' oil production.

In March 2019,Hibiscus Petroleum Bhd announced St Joseph Infill Drilling is Sanctioned,The company will Drill 3 infill oil producing wells. Expected to add approximately 2,600 bbl/day at its peak with an expected life of field reserve of 2.77 MMstb (gross). Also,The company is seeking Petronas approval in 3Q  2019 for SF30 Infill Drilling, which inclouded drilling of infill oil producing wells.

Operator

Hibiscus Petroleum Berhad(Malaysia)

Petronas Carigali(Malaysia)