Malaysia’s Hibiscus Petroleum is celebrating the completion of its “transformational” US$212.5 million acquisition of oil and gas assets in Malaysia from Spain’s Repsol.

The two principal assets are offshore Blocks PM3 CAA and Kinabalu, which combined contain 10 producing oil and gas fields.

Hibiscus said today its average daily oil and gas production is projected to increase almost threefold. The full portfolio comprises:

  • a 60% interest in the 2012 Kinabalu Oil production sharing contract off the coast of Sabah, Malaysia;
  • a 35% interest in the PM3 CAA PSC located within the Commercial Arrangement Area between Malaysia and Vietnam;
  • a 60% interest in each of the PM305 and PM314 PSCs located off the eastern coast of Peninsular Malaysia in the Malay basin; and
  • a 70% interest in Block 46 (Cai Nuoc), a tie-back asset to the PM3 CAA PSC located in Vietnamese waters.
  • 60% interest in the 2012 Kinabalu Oil production sharing contract off the coast of Sabah, Malaysia

Hibiscus’ joint venture partners are Petronas Carigali in the Kinabalu, PM305 and PM314 PSCs; Petronas Carigali and PetroVietnam Exploration & Production (PVEP) in the PM3 CAA PSC; and PVEP in Block 46.

Hibiscus said the net amount paid at completion on 24 January 2022 was US$123.65 million after taking into account various adjustments including the deposit paid of US$15 million.

Hibiscus' managing director Kenneth Pereira said: “The completion of this acquisition brings to a close the process which began when we first bid for these assets and opens a new chapter in the Group’s next phase of growth.”

“We welcome onboard the Repsol team into the Hibiscus family and look forward to working together on further enhancing value from these assets in 2022 and beyond.”

“Almost 50% of the production comprises gas. The addition of gas production is expected to present a better balance to our Group’s asset portfolio in terms of price stability, markets and operations. Such diversification represents a key aspect of our energy transition strategy as natural gas has been regarded as an important bridging fuel as the world transits to a lower carbon energy mix.”

The company has said previously it expects to almost triple its average net daily oil, gas and condensate production to 26,800 barrels of oil equivalent per day in calendar year 2022.

Hibiscus already generates production from the Anasuria oilfield in the UK North Sea, and the North Sabah oil complex offshore Malaysia.

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