Malaysia: Hibiscus Petroleum to buy 50 per cent in Shell's four Sabah oil fields for $25m

Malaysia: Hibiscus Petroleum to buy 50 per cent in Shell's four Sabah oil
fields for $25m

Malaysian oil and gas firm Hibiscus Petroleum Bhd's subsidiary SEA Hibiscus
Sdn Bhd has announced the acquisition of 50 per cent stake in Dutch oil and
gas giant Shell's four oil fields offshore Sabah for $25 million.

SEA Hibiscus entered into a conditional sale and purchase agreement with
Sabah Shell Petroleum Company Limited and Shell Sabah Selatan Sdn Bhd to
acquire Shell's interests in the "2011 North Sabah Enhanced Oil Recovery
Production Sharing Contract," Hibiscus said in an announcement at Bursa
Malaysia.

The acquisition is expected to complete next year and is subject primarily
to obtaining regulatory approval of national oil and gas company Petroliam
Nasional Bhd and consent of Petronas Carigali Sdn Bhd which is a 50 per cent
joint venture partner in the acquired assets, Hibiscus said.

The acquisition will be funded through internally generated funds and
financing or credit facilities.

The four producing oil fields are in the South China Sea, off the coast of
Sabah, in a key hydrocarbon province in Malaysia. The oil fields and the
infrastructure acquired by the company are St Joseph, South Furious, SF30,
and Barton oilfields.

The assets also include pipeline infrastructure and the Labuan Crude Oil
Terminal. Total oil production averaged about 18 kbbls / day in 2015 and the
oil fields provide long-term production rights until 2040 with identified
future development opportunities

"Having built our portfolio of assets and developed our track record as an
oil and gas company globally, we are pleased with this opportunity to
demonstrate our capabilities and further evolve the company into a late
field life operator that will deliver long term value to Malaysia," said
Hibiscus Managing Director Kenneth Pereira.

The acquisition is in line with the growth strategy of Hibiscus to invest in
profitable development and producing business operations in our identified
core geographical areas of interest, he said. It also provides the group
with immediate access to proven and probable oil and gas reserves with
future potential upside, Pereira added.

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Ref:
http://www.dealstreetasia.com/stories/hibiscus-petroleum-acquires-50-per-cen
t-in-shells-four-sabah-oil-fields-for-25-million-55339/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com