Hibiscus unit gets Norway nod for oil and gas projects

Lime Petroleum Norway AS (Lime Norway), a subsidiary of Hibiscus Petroleum Bhd, has obtained pre-qualification to operate as an oil and gas player in Norway by the Norwegian Ministry of Petroleum and Energy.

Lime Norway, which is a joint venture between Hibiscus and Lime Petroleum Plc (Lime), can now directly assume participating interests in partner-operated licences in the Norwegian Continental Shelf (NCS).

In a press statement yesterday, Hibiscus said: “Lime, which is owned by Hibiscus Petroleum, Schroder & Co Banque S.A and Rex Oil & Gas Ltd (Rex), had on May 2, 2012, signed an agreement to acquire 50% of North Energy ASA's interest in at least four concessions in the NCS. This prequalification is a key step towards completing these transactions.

“We are pleased that Lime Norway has obtained this prequalification. This is a key milestone for us as it gives us the opportunity to operate alongside established E&P (exploration and production) companies,” said Hibiscus managing director and Lime chairman Dr Kenneth Pereira.

Lime already has four concessions in the Middle East and has exclusive access to Rex technologies to increase the chances of commercial oil and gas discoveries.

Further, the risked capital outlay of Lime Norway is reduced as under the Norwegian Petroleum Tax Act, 78% of exploration expenditure incurred is reimbursed at the end of each year, irrespective of whether production is achieved.

The proposed acquisition of the NCS concessions is in line with Hibiscus Petroleum's portfolio balancing strategy to acquire more moderate and low-risk assets in geo-politically stable regions.