Malaysia's Hibiscus Petroleum has confirmed its acquisition of a portfolio of Repsol's producing offshore oil and gas fields in Malaysia and Vietnam.
Hibiscus said in an announcement to the Malaysian bourse that it had entered into a conditional sale and purchase agreement with Repsol for the proposed acquisition of Fortuna International Petroleum for a cash price of $212.5 million.
Repsol revealed on 1 June 2021 that it had agreed to sell its operated assets in Malaysia and one asset in Vietnam to Hibiscus, but did not disclose any terms of the deal.
Fortuna International Petroleum is the Repsol vehicle that owns:
- 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.
The remaining companies with interests in the assets with pre-emptive rights are:
- Petronas Carigali, a wholly-owned subsidiary of Malaysian national oil company Petronas, 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 it has paid a partial deposit of US$7.5 million to Repsol, while a parent company guarantee by Hibiscus in favour of Repsol was also entered into.
A transition services agreement for the provision of various services by Repsol to Hibiscus in order to facilitate a smooth handover will be finalised and entered into by the two parties at a later stage.
Hibiscus said it anticipates closing the transaction in 2021, and said it will provide full details of the acquisition by Friday, 4 June 2021.