Hibiscus To Acquire TotalEnergies Brunei Ops For US$259.4 Million

Hibiscus Petroleum Berhad has announced that its wholly owned subsidiary Simpor Hibiscus Sdn Bhd has entered into a conditional Share Purchase Agreement with TotalEnergies Holdings International B.V. for the proposed acquisition of the entire equity interest in TotalEnergies EP (Brunei) B.V. for a total cash consideration of USD259.4 million

The group said the proposed acquisition is for TotalEnergies Brunei’s 37.5% operated interest in the MLJ field, a high-quality gas asset located offshore Brunei. Located in a prolific hydrocarbon-bearing region, the Asset was discovered in 1989 and has been producing gas and condensate since 1999. The Asset it added has long-term production rights of up to 15 years (expiring on 23 November 2039), if extended with the agreement of the joint venture parties.

Other parties holding the remaining interest in the Asset are Shell Deepwater Borneo Limited (35.0%) and Brunei Energy Exploration Sdn Bhd (27.5%), a company ultimately owned by Brunei Minister for Finance Corporation.

Hibiscus said the Asset is expected to add a net of up to 21.7 MMboe to the Group’s 2P reserves, an increase of 36% from 60.9 MMboe to 82.6 MMboe as at 1 January 2024, while total daily net production of oil, condensate and gas is expected to increase by circa 7,865 boe per day from 21,398 boe per day to 29,263 boe per day in CY2024. This is expected to bring the gas production share of the Group’s portfolio to almost 50%, in line with the Group’s energy transition strategy of acquiring gas-weighted assets in stable regulatory jurisdictions.

Apart from acquiring a well-established gas asset in Brunei and taking over its operations, Hibiscus believes the proposed acquisition further strengthens its position as an independent Exploration and Production (E&P) player in the region. The Group anticipates that with its track record of arresting production decline while increasing daily production for its existing assets, it would be able to introduce plans to improve the Asset’s performance and reduce operating costs per barrel.

The additional volumes from this transaction are material for Hibiscus Petroleum and will provide an uplift of nearly 86% to our gas production whilst bringing us closer towards achieving our 2026 Mission of growing the Group’s net production to 35,000 – 50,000 boe per day.

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