Hibiscus Petroleum Completes Transformative Acquisition of Oil & Gas Assets

Source: www.gulfoilandgas.com 1/25/2022, Location: Asia

Hibiscus Petroleum Berhad (MK) (“Hibiscus Petroleum”) is pleased to announce that its indirect wholly-owned subsidiary, Peninsula Hibiscus Sdn Bhd (“Peninsula Hibiscus”), has successfully completed the acquisition of the entire equity interest in Fortuna International Petroleum Corporation (“FIPC”).

Out of the purchase price of USD212.50 million, the net amount paid at completion is USD123.65 million after taking into account various adjustments including the deposit paid of USD15.00 million.

The completion comes shortly after all conditions were fulfilled as announced on 20 January 2022.

To recap, the high-quality asset portfolio comprises interests and operatorship in the following five production sharing contracts (“PSCs”) in Malaysia and Vietnam:

PSC: PM314
Participating Interest: 60%
Location: Geologically in the Southwest Malay Basin, offshore Peninsular Malaysia
PSC expiry: 30.03.2033

PSC: PM305
Participating Interest: 60%
Location: Geologically in the Southwest Malay Basin, offshore Peninsular Malaysia
PSC expiry: 26.11.2029

PSC: 2012 Kinabalu Oil
Participating Interest: 60%
Location: Sabah, offshore Malaysia
PSC expiry: 25.12.2032

Participating Interest: 35%
Location: Geologically in the Northeast Malay Basin, within the CAA between Malaysia and Vietnam
PSC expiry: 31.12.2027

PSC: Block 46
Participating Interest: 70%
Location: Geologically in the Northeast Malay Basin, Vietnamese waters
PSC expiry: 31.12.2027

Commenting on the completion, Managing Director, Dr Kenneth Gerard 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.

Finally, this transaction has been made possible with the strong support of our shareholders, industry regulators both in Malaysia and Vietnam as well as our business partners. Our current partnership with PETRONAS and Petronas Carigali Sdn Bhd will be further strengthened and we are excited to forge a new working relationship with PetroVietnam as we expand our geographic footprint into Vietnam.”

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