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Ping UK adds new North Sea licenses to portfolio

Aberdeen, 2 April 2024 – Ping UK has bolstered its North Sea portfolio with the addition of three licenses. Two are from the UK’s 33rd licencing round, the Glenn and Hutton fields, and the third is the Pilot development, after the business completed the acquisition of an 81.25 per cent stake from Orcadian Energy.

Licence P2612 (which contains the Glenn field) and P2626 (incorporating the Hutton field) and P2244 (which contains the Pilot field) are seen as significant additions to Ping’s existing interests.

The new acreage brings significant additional resources to its UK Continental Shelf portfolio, now totalling in excess of 100 MMboe in the central North Sea whilst also revitalising the historic Hutton field in the Northern North Sea. The company continues to support Anasuria Operating Company, one of the most efficient operators in the North Sea. Along with Ping’s Fyne interest and the progressing development of Avalon, these additional licences establish a considerable development portfolio for the business.

Ping is a subsidiary of global multinational technology leader, Dagang NeXchange Berhad (DNeX). It has an office in Aberdeen and in Kuala Lumpur, Malaysia.

The new UK licences will remain in the planning mode for the medium-term while the energy sector seeks further clarity in the coming months over the direction of a potential new fiscal environment.

Ping Petroleum’s Managing Director Zainal Abidin Jalil said: “We are very excited about these licences and we believe we can use our technical skills from across our expert teams based in Aberdeen and Kuala Lumpur to extract significant value at low cost and very low emissions.

“These licences are likely to present technical obstacles which we are looking forward to tackling. In addition, the commercial challenges also have to be considered. Ping is the right kind of operator to find suitable solutions to both. We anticipate these projects will potentially come to first oil soon after the projected end of the Energy Profits Levy (EPL).”

The company now plans to embark on subsurface and engineering studies to assess the best development concepts with respect to maximum efficient rate (MER) while aligning with its Energy Transition strategy.

He added: “Orcadian Energy, with support from TGS, has worked the subsurface of this area for several years. We believe some simplification of the development concept and a phased approach can provide an economical solution.

“Glenn, which is currently a stranded asset, offers a chance to add value to our Avalon development by adding another reservoir. This enables us to continue our strategic focus of MER.”

Both these developments are in the Central North Sea where Ping has experience in operating Anasuria and progressing their greenfield development, Avalon and partnering on Fyne.

He said “Hutton provides a different challenge for us as it is located in deeper water and a harsher environment. Further subsurface work needs to be completed prior to a high-level recovery concept being put forward. This provides an excellent opportunity for Ping to find an innovative and environmentally cognisant solution to extract remaining value from the field.”

Hutton, which was discovered in 1973, produced oil through the1980s and 1990s before it was shut in in 2001. Meanwhile, Ping’s Malaysian operation continues to progress its three licences with the first development expected to deliver first oil next year. The company employs an outsourced model, enabling it to maintain efficiencies while backing local service providers and fostering information exchange between its two offices.

Issued on behalf of Ping Petroleum UK PLC by BIG Partnership.

For further information, please contact phil.allan@bigpartnership.co.uk or call 07841 913287.