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West Seahorse gets offshore development - 3D

16th April 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed 3D Oil and its joint venture (JV) partner Carnarvon Hibiscus has decided on a design concept to develop the West Seahorse oilfield off the Victoria coast.

The company said that following a comprehensive review of a variety of development alternatives, the JV had selected an offshore solution for the project, based on a cost-effective approach and minimum time to first oil.

The development would consist of a mobile offshore production unit, into a leased tanker serving as a floating storage and offloading vessel, which would enable crude oil sales into the local and international markets.

3D noted that the field life was currently anticipated to be between four and five years, with initial production rates set as high as 12 000 barrels of oil a day.

First oil was on track for the first quarter of 2015.

“Choosing the optimum development concept is a significant step towards bringing the West Seahorse field into production. It is a very exciting time for the company and ultimately transformative, with first oil now on the horizon,” said 3D MD Noel Newell.

Under the terms of the JV agreement, Hibiscus had deposited A$20.25-million into a JV account. A further tranche of A$6.75-million would be deposited upon the exhaustion of the monies.

Expenditure in excess of the A$27-million farm-in funding would be contributed in accordance with the JV interest.

3D said on Tuesday that the JV had received a favourable response from early discussions with project financiers, adding that now that the concept selection was finalised, the JV would proceed to formalize project funding arrangements.

3D holds a 49.9% interest in the West Seahorse project, while Hibiscus holds the balance, and acts as the project operator.

Edited by Creamer Media Reporter

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