Today: October 20, 2018, 7:04 pm
  
Energy & Environment

Hibiscus Petroleum Completes Acquisition of North Sabah PSC from Shell

Hibiscus Petroleum Completes Acquisition of North Sabah PSC from Shell
PR-Inside.com: 2018-04-02 14:59:23
- Hibiscus Petroleum secures second revenue stream with completion of the transaction to acquire 50% participating interests in the North Sabah PSC from Shell.

- Operatorship of the assets have been transferred from Shell to SEA Hibiscus.

- Significant boost in Hibiscus Petroleum?s oil production and 2P Reserves.

KUALA LUMPUR, Apr 2, 2018 - (ACN Newswire) - Hibiscus Petroleum Bhd (HIBISCS; MYX: 5199) is pleased to announce that its indirect wholly owned subsidiary SEA Hibiscus Sdn Bhd (SEA Hibiscus) has completed its acquisition of a 50% participating interest in the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract (North Sabah PSC or PSC) and the joint operating agreement (JOA) in relation to the PSC.


To recap, SEA Hibiscus had, on 12 October 2016, entered into a conditional sale and purchase agreement (SPA) with Sabah Shell Petroleum Company Limited and Shell Sabah Selatan Sdn Bhd (collectively Shell) to acquire Shell's participating interests in the PSC between Petroliam Nasional Berhad (PETRONAS), Shell and PETRONAS Carigali Sdn Bhd (PETRONAS Carigali), and the JOA between Shell and PETRONAS Carigali for the total purchase consideration of US$25 million.

The North Sabah PSC includes 20 offshore platforms across four producing fields located in the South China Sea, off the west coast of Sabah, and the Labuan Crude Oil Terminal located in the Labuan Federal Territory, in Malaysia. The fields have been producing since 1979 and the PSC provides the Group with operatorship and production rights up to 2040.

Hibiscus Petroleum Chairman, En Zainul Rahim said, "We would like to thank all the parties involved especially PETRONAS, PETRONAS Carigali and Shell for their support which has enabled us to complete this acquisition. The North Sabah PSC constitutes our second producing asset, providing Hibiscus with another revenue stream after the Anasuria Cluster. It is an exciting time for Hibiscus Petroleum as we expand and strengthen our technical and operating capabilities, profitability and balance sheet. This is an example of Hibiscus Petroleum's strategy to grow shareholder value by focusing our activities on assets where we believe we can offer a unique value proposition to enhance production from mature assets in regions of our geographic focus."

Furthermore, the North Sabah PSC will significantly boost the Group's production and proven and probable reserves (2P Reserves). On a 100% PSC basis, the total oil production averaged approximately 14.6 kbbls/day in 2017, with 2P Reserves and contingent oil resources (2C Resources) as of 1 January 2018 at approximately 40.9 mmbbls and 79 mmbbls, respectively.

Having met all the conditions precedent under the SPA, the transfer of operatorship from Shell to SEA Hibiscus concluded on 31 March 2018 and SEA Hibiscus thereby assumed the role of operator of the North Sabah PSC. As operator, SEA Hibiscus will be responsible for the day-to-day operations and management of the work activities of the assets within the North Sabah PSC.

"We are pleased to welcome the highly capable team which has transferred from Shell to SEA Hibiscus and look forward to working closely with PETRONAS and PETRONAS Carigali to maximise the economic value of this asset. Whilst we are excited to develop the opportunities that have been identified to realise the considerable potential within the North Sabah PSC fields, our focus will be to improve the performance of the asset in a safe and environmentally responsible manner," said Dr Pascal Hos, Chief Executive Officer of SEA Hibiscus.

About Hibiscus Petroleum Bhd

Hibiscus Petroleum Berhad (HIBISCS; MYX: 5199) is Malaysia's first listed independent oil and gas exploration and production company. Its key activities are focused on monetising its oil producing fields and growing its portfolio of development and production assets in areas of its geographical focus: United Kingdom, Malaysia and Australia. Hibiscus Petroleum is headquartered in Kuala Lumpur, and its shares are listed on the Main Market of Bursa Malaysia Securities Berhad (Bursa Securities). For more information, please refer to www.hibiscuspetroleum.com.

Investors and Media:

Investor Relations Team

Tel: +603 2092 1300

ir@hibiscuspetroleum.com

www.hibiscuspetroleum.com

Topic: Press release summary

Sectors: Daily Finance, Energy, Marine/Offshore

www.acnnewswire.com

From the Asia Corporate News Network

Copyright © 2018 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

Press Information


Published by
ACN Newswire
+65 6304 8926
e-mail
www.acnnewswire.com



# 678 Words
Related Articles
More From The Author
VRG Announces Affiliation with RBSA Advisors in [..]
NEW YORK & MUMBAI, Mar 29, 2018 - (ACN Newswire) - Valuation Research Group (VRG), the international affiliates of Valuation [..]
Asian Tobacco Growers gather in Lombok, Indonesia [..]
Lombok, INDONESIA, Mar 29, 2018 - (ACN Newswire) - Members of the International Tobacco Growers Association (ITGA) in Asia held [..]
JWD InfoLogistics (JWD.TB) Unveils FY2018 Plan, Pursues [..]
Inks Major Taiwanese Food Firm Shares-Purchase Agreement to Build Regional Food Supply Chain BANGKOK, Mar 29, 2018 - (ACN Newswire) [..]
TEPCO Establishes New Online Renewable Electricity Retail [..]
TOKYO, Mar 30, 2018 - (JCN Newswire) - Tokyo Electric Power Company Holdings, Inc. (TEPCO) announced today the launch of [..]
Oceanwide Financial (952.HK) Announces 2017 Financial Results
Turned profit from a previously loss-making situation and reported an after tax profit of approximately HK$43.29 million; Average [..]
 
More From Energy & Environment
Borden Waste-Away Group and Customers Continue Joint [..]
ELKHART, IN (October 8, 2018) --- As Breast Cancer Awareness month is well underway, Borden Waste-Away Group met with Goshen [..]
Cabo Verde Begins 2018 Nesting Season With [..]
This month marks the official start of the 2018 nesting season in Cabo Verde, and with it comes high expectations [..]
NetentPlay Free Slot Portal Keeps NetEnt Gamers [..]
MAY 12, 2018 – Net Entertainment remains a popular provider of online casino games that players can start playing free. [..]
GSHK Solar Technologies Ltd. appoints new CEO
GSHK Solar is the only manufacturer in full-scale production of CIGS (Copper Indium Gallium (di)Selenide) PV cells on a flexible [..]
FINNISH INNOVATION HALVES THE AMOUNT OF OIL [..]
Fluid Intelligence® has been selected to participate the CleanWeb program of Business Finland and the Finnish government. At [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.