© Nikkei Markets
KUALA LUMPUR (Dec 04) — Malaysian oil and gas company Hibiscus Petroleum plans to spend about $30 million to develop Anasuria cluster in UK in the fiscal year 2019 as the company aims to control production costs to shield against falling crude oil, its managing director said Tuesday.
Investment in Anasuria cluster hasn’t been sanctioned by the board yet, said Kenneth Pereira, managing director, in a press conference in Selangor. About 70 million ringgit ($16.86 million) has been sanctioned for North Sabah.
The company has deferred development of oil field in Australia due to high production cost, he said. It is exploring two funding options to raise between $50 million – $100 million to develop Australia oil field as the production cost is estimated to cost twice more than the company’s oilfields in the North Sea and North Sabah.
The company also aims to cap production cost at $15 and $20 per barrel for North Sabah and Anasuria Cluster in the UK, respectively, Pereira said.
“If the oil prices collapse below $40/barrel, I think we’ll have to be extremely careful but we’ll remain profitable,” said Pereira. “We don’t want to go there but we’ve been there before and survived.”
– By Gan Pei Ling
– Edited by Sayantika Bhowal