Hibiscus Petroleum Berhad has announced that its jointly-controlled entity, Lime Petroleum Norway AS has completed the acquisition of a 5% stake each in PL591 and PL591B, located in the Norwegian Sea.
North Energy signed a purchase and sale agreement with Lime Petroleum Norway in June 2014.
The transfer of the equity interests in PL591 and PL591B to Lime Norway was completed following receipt of regulatory approval. Hibiscus Petroleum now holds a total portfolio of 13 licences in Norway. Tullow Oil Norge AS is the operator at PL591 and PL591B. Lime Norway is a wholly-owned subsidiary of Lime Petroleum Plc (Lime). Lime is a jointly-controlled entity in which Hibiscus Petroleum owns a 35% stake.
Following the capital injections totalling USD23 million made by Lime’s shareholders in November 2013 and January 2014, together with the NOK300 million (approximately USD45 million) financing facility secured from Skandinaviska Enskilda Banken AB, Lime Norway has secured adequate financing to fulfil their work commitments into 2015.
The acquisition of the interests in the Norwegian Continental Shelf concessions is in line with Hibiscus Petroleum’s portfolio balancing strategy to acquire assets in geopolitically stable regions. The attractive fiscal terms offered by the Norwegian Petroleum Tax Act also benefit Lime Norway as 78% of eligible exploration expenditure is reimbursed annually, irrespective whether production is achieved. This is unlike the petroleum fiscal systems of most countries whereby a certain portion of exploration expenditure may only be recovered upon production.