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.

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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.