Malaysian oil and gas company Hibiscus Petroleum has completed the acquisition of Repsol’s interests in oil and gas assets in Malaysia and Vietnam.
The proposed agreement was first announced in June 2021, when the parties said that the purchase price would be $212.5 million.
In a statement on Tuesday, Hibiscus Petroleum said that out of the purchase price of $212.50 million, the net amount paid at completion was
$123.65 million after taking into account various adjustments including the deposit paid of $15.00 million.
The acquired asset portfolio, for which Hibiscus Petroleum says is a high-quality one, comprises interests and operatorship in five production sharing contracts (“PSCs”) in Malaysia and Vietnam. See below:
"Our average daily oil and gas production is projected to increase almost threefold. As operator of the newly acquired assets, the Group is well-positioned to build on its successful operational track record in its other producing assets in the United Kingdom and Malaysia," Hibiscus said.
Hibiscus Petroleum's 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.”