Hibiscus Petroleum is experiencing yet another delay in drilling the Sea Lion-1 exploration well, offshore Australia, as the bad weather is preventing a rig handover.
3D Oil Limited, a partner in the permit VIC/P57, said on Tuesday that the handover of the West Telesto jack-up rig from Origin Energy, the current operator, had been prevented due to weather conditions.
3D Oil states that the delay in spudding Sea Lion-1 is not at the material expense of the VIC/P57 joint venture and also that it is not due to problems with the performance of the rig or other operational factors.
“The delay is entirely due to adverse Bass Strait weather and sea conditions preventing the timely release of the West Telesto from its current assignment with another operator,” 3D Oil said in a statement on Tuesday.
Sea Lion-1 is located in offshore Gippsland Basin permit VIC/P57 where 3D Oil has a 24.9% interest. 3D Oil’s share of the Sea Lion-1 well costs is being carried up to the extent of $7.5 million as part of an agreement with Hibiscus Petroleum’s wholly-owned entity, Carnarvon Hibiscus Pty Ltd (CHPL).
CHPL currently holds a 55.1% participating interest in VIC/P57 whilst HiRex (Australia) Pty Ltd (41% effective interest held by Hibiscus Petroleum) has a 20% interest in VIC/P57.
Offshore Energy Today Staff