DNeX unit receives ‘no objection’ on growth idea for Avalon venture

KUALA LUMPUR: Dagang Nexchange Bhd‘s (DNeX) 90%-owned subsidiary Ping Petroleum Ltd has obtained a letter of “no objection” from the North Sea Transition Authority in relation to its proposed growth idea for the Avalon discovery within the Central North Sea, UK.

In a press release, the group stated the corporate will now finalize conceptual growth planning and start front-end engineering works in preparation to submit the Avalon Area Growth Plan, with the ultimate funding determination anticipated for later this 12 months.

With a complete estimated restoration of 23 million barrels of oil, manufacturing from Ping’s second oilfield asset is scheduled to start between mid 2024 and mid 2025, topic to availability of

key supplies and tools.

DNeX group managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir stated the “no objection” letter represents a cloth alternative to broaden and diverisfy Ping’s portfolio of oil property in full accordance with the UK’s manufacturing and emissions-reduction targets.

He stated the idea contains tie-back of Avalon manufacturing wells to a re-used Floating Manufacturing Storage and Offloading facility (FPSO), which has spare ullage to offer an offtake route for close by stranded discoveries.

He added that discussions are ongoing with the UK regulator and provide chain to decarbonise the event by way of integration with Floating Offshore Wind.

“The subsequent step for Ping is to submit the corporate’s discipline growth plan for Avalon to NSTA by the subsequent quarter. As soon as approval is attained, the corporate will proceed with the total

growth program” he added.

He stated the Avalon discipline is deliberate to provide at preliminary charges of 20, 000 barrels of oil per day, offering a cloth enhance in manufacturing and diversifying the asset base.


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