Dagang NeXchange Bhd (DNeX), via its 90% owned subsidiary Ping Petroleum Ltd., completed the acquisition of the remaining 50% interest in UK North Sea Block 21/6b, License P.2006, containing the Avalon oil development, from Sumitomo Corp. subsidiary Summit Exploration and Production Ltd.
Ping now owns 100% of the greenfield asset, Avalon oil development, which lies 20 km northeast of Aberdeen in water depth of 120 m. The 2014 oil discovery (21/6b-8) was successfully appraised in 2017 by the 21/6b-9 appraisal well. Avalon oilfield has an estimated volume of 9.3 million stock tank barrels of 1C, 15.5 MMstb, of 2C, and 21.0 MMstb of 3C oil contingent resources. In addition, it holds 4.1 billion standard cu ft of 1C, 4.0 billion standard cu ft of 2C, and 5.5 billion standard cu ft of 3C gas contingent resources.
The asset complements Ping’s existing upstream portfolio in the North Sea, UK, said Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, group managing director of DNeX, in a Sept. 23 release. The deal also gives Ping full control of the development project, especially on the concept selection and field development plan, he continued.
The company plans to initiate procurement, project execution, and drilling operations to deliver first oil by July 2023, subject to the UK Oil and Gas Authority approval.
Initial cash consideration is $5 million with further contingent payments for a total purchase consideration of $17 million.
