Malaysia’s Hibiscus Closes Acquisition of Brunei Asset from TotalEnergies

Hibiscus Petroleum Berhad subsidiary Simpor Hibiscus Sdn Bhd has accomplished the acquisition of fairness curiosity in TotalEnergies EP (Brunei) B.V.

With the completion of the acquisition, Hibiscus is now operator and proprietor of a 37.5 p.c curiosity in a well-established gasoline producing asset, Block B Maharajalela Jamalulalam (MLJ) area, in Brunei Darussalam, the Malaysian firm mentioned in a information launch.

The corporate’s three way partnership companions within the asset are Shell Deepwater Borneo B.V. with a 35.0 p.c curiosity and Brunei Power Exploration Sdn Bhd with 27.5 p.c. The concession tenure is as much as November 2029, with the precise to increase past this era, topic to the mutual settlement of the three way partnership companions, in response to the discharge.

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Hibiscus Managing Director Kenneth Gerard Pereira mentioned, “This marks the growth of the Group’s geographic footprint into Brunei and solidifies our place as an unbiased exploration and manufacturing (E&P) participant within the ASEAN area”.

“It additionally offers a greater steadiness to our asset portfolio because the world transitions to a decrease carbon vitality combine with greater world demand for pure gasoline. We imagine that this asset will translate into greater and optimistic returns for our shareholders. The most important asset is the extremely certified group in Brunei whom we warmly welcome to the Hibiscus Group. Their technical experience, in-depth information and wealth of expertise are important to securely and effectively delivering worth for all stakeholders,” Pereira continued.

“We’re dedicated to persevering with and increasing on TotalEnergies Brunei’s native program. We’re additionally deeply appreciative of His Majesty of Brunei Authorities for welcoming us into their prolific oil and gasoline jurisdiction and to three way partnership companions, Shell Deepwater Borneo B.V. and Brunei Power Exploration Sdn Bhd, all of whom have been very supportive all through the entire progress of the acquisition. We thank His Majesty of Brunei Authorities for his or her assist. We’re excited to additional strengthen our relationship in constructing and delivering on our shared imaginative and prescient,” he concluded.

In June, Hibiscus introduced a conditional share buy settlement (SPA) with TotalEnergies Holdings Worldwide B.V. for the proposed acquisition of your complete fairness curiosity in TotalEnergies Brunei for a complete money consideration of $259.4 million.

Situated in a prolific hydrocarbon-bearing area, Block B MLJ was found in 1989 and has been producing gasoline and condensate since 1999. The asset has long-term manufacturing rights of as much as 15 years, in response to an earlier information launch.

The asset is anticipated so as to add a web of as much as 21.7 million barrels of oil equal (MMboe) to Hibiscus’ 2P reserves, a rise of 36 p.c from 60.9 MMboe to 82.6 MMboe, whereas complete each day web manufacturing of oil, condensate and gasoline is anticipated to extend by roughly 7,865 barrels of oil equal (boepd) from 21,398 boepd to 29,263 boepd in 2024.

Hibiscus mentioned the acquisition is anticipated to deliver the gasoline manufacturing share of its portfolio to virtually 50 p.c, in keeping with its vitality transition technique of buying gas-weighted property in secure regulatory jurisdictions.

Kuala Lumpur-based Hibiscus Petroleum is Malaysia’s first listed unbiased oil and gasoline exploration and manufacturing firm. The corporate’s key actions are targeted on monetizing its oil-producing fields and rising its portfolio of growth and manufacturing property in areas of its geographical focus: Malaysia, the UK and Vietnam.

To contact the writer, electronic mail rocky.teodoro@rigzone.com