3D Oil Limited has informed that the National Offshore Petroleum Titles Administrator (NOPTA) has offered the VIC/P57 Joint Venture (JV) a Production licence over the West Seahorse (WSH) oil field in the offshore Gippsland Basin in Australia. NOPTA has also approved the Field Development Plan (FDP) for WSH.
“The Production Licence offer adds significant certainty to the WSH project. The approval of the FDP is also a significant milestone that indicates acceptance of the development concept and associated geosciences and engineering planning,” 3D Oil said in a statement.
WSH is being developed for production in early 2015 by the JV comprised of 3D Oil Limited 49.9% and Carnarvon Hibiscus Pty Ltd (Hibiscus), a wholly owned subsidiary of Hibiscus Petroleum Berhad , as Operator with 50.1%. Under NOPTA’s rules, the JV now has 90-days to accept the offer and be awarded the WSH Production Licence.
Last month, 3D Oil Limited announced that it had formally started the financing process for the development of WSH and exploration drilling in VIC/P57. 3D Oil Limited is working closely together with Hibiscus to implement the financing plan.
“Promising discussions are underway with a number of potential debt financiers for the JV. A number of Australian banks, international financiers and structured finance providers are currently assessing the opportunity. 3D Oil Limited is also engaged with multiple parties regarding its potential equity requirements. A Final Investment Decision is currently expected early in 2014,” 3D Oil said in a release.
The development will consist of production via a leased Mobile Offshore Production Unit (MOPU) in to a leased tanker serving as a Floating Storage and Offloading (FSO) Vessel which will enable crude oil sales both locally and internationally.
The field life is anticipated to be 4 to 5 years, dependent on a number of factors including operating costs and oil price. Initial production rates are expected to be as high as 12,000 barrels of oil per day.
November 14, 2013