Hibiscus Petroleum Berhad has announced that its indirect wholly-owned subsidiary has finally completed the acquisition of the entire equity interest in Fortuna International Petroleum Corporation from Repsol, the Spanish oil giant.
According to the statements, out of the purchase price of US$212.50 million Hibiscus earlier quoted, the net amount paid at completion is US$123.65 million after taking into account various adjustments including the deposit paid of US$15.00 million. The completion comes shortly after all conditions were fulfilled as announced recently. Based on the information provided, the deal will see Hibiscus taking over some high-quality asset portfolio comprising interests and operatorship in Malaysia and Vietnam.
With the acquisition, the driller is expecting its average daily oil and gas production is to increase almost threefold and is confident with the newly acquired assets, it will be well-positioned to build on its successful operational track record in its other producing assets in the United Kingdom and Malaysia.
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.
Almost 50% of the production comprises a 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.
Hibiscus’ partnership with Petronas and Petronas Carigali Sdn Bhd is seen to strengthen its footprint will be working closely with the local oil and gas player in Vietnam as well.
