Malaysian operator Hibiscus Petroleum's proposed US$212.5 million cash acquisition of Spanish energy giant Repsol's Malaysian portfolio has cleared another hurdle.

Hibiscus said Malaysian national oil company Petronas had given its approval dated 6 December 2021 for the change of control of Repsol’s rights, interests and obligations under the 2012 Kinabalu Oil production sharing contract, as well as the PM3 CAA PSC, PM305 PSC and PM314 PSC, with effect from 1 January 2021.

Vietnamese national oil company PetroVietnam also needs to provide its approval of the deal given that PM3 CAA is a joint Malaysia-Vietnam offshore area, and Block 46 PSC (Cai Nuoc) - a tie-back contender to the PM3 CAA area - is located in Vietnamese waters.

Hibiscus also needs to secure the approval of its own shareholders, which will be the final consent required.

Hibiscus describes the Repsol transaction as a "transformative acquisition expected to almost triple the Group’s average net daily oil, gas and condensate production to 26,800 barrels of oil equivalent per day in calendar year 2022".

The company had hoped to complete the acquisition by the end of 2021.

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