Hibiscus Petroleum has completed its previously announced acquisition of Repsol’s oil and gas assets, in Malaysia and Vietnam, for approximately $212.5m.
The acquisition was first announced in June last year when Hibiscus Petroleum’s wholly-owned subsidiary, Peninsula Hibiscus, signed an agreement with Repsol Exploración to purchase the entire equity interest in Fortuna International Petroleum Corporation (FIPC), which held the assets.
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Of the total purchase price, Hibiscus made a payment of $123.65m, after taking into consideration various adjustments, including the $15m deposit paid.
FIPC held stakes in five production sharing contracts (PSC) in Malaysia and Vietnam.
It includes 60% stakes in PSCs in PM314, PM305, and 2012 Kinabalu Oil, all located offshore Malaysia.
Hibiscus Petroleum also secured a 35% stake in the PSC PM3 commercial arrangement area (CAA) in the Northeast Malay basin, within the CAA, between Malaysia and Vietnam, and 70% in block 46, located in the Northeast Malay basin.
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By GlobalDataAs agreed earlier, Hibiscus Petroleum will also serve as the operator of the newly acquired assets.
Hibiscus Petroleum 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.
“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.”
The company expects that the acquisition will increase its average daily oil and gas production capacity threefold.
In December last year, Repsol reported a 0.91% decrease in total oil and gas production in September 2021.
