Hibiscus Petroleum Berhad announced on Wednesday that its indirect wholly-owned subsidiary, Peninsula Hibiscus Sdn Bhd (“Peninsula Hibiscus”), has successfully completed the acquisition of the entire equity interest in Fortuna International Petroleum Corporation (“FIPC”) on 24 January 2022.
In a statement issued, the Group said that out of the purchase price of USD212.50 million, the net amount paid at completion is USD123.65 million after taking into account various adjustments including the deposit paid of USD15.00 million.
The completion comes shortly after all conditions were fulfilled as announced on 20 January
2022.
To recap, the high-quality asset portfolio comprises interests and operatorship in the
following five production sharing contracts (“PSCs”) in Malaysia and Vietnam:
| PSC | Participating Interest | Location | PSC Expiry |
| PM314 | 60% | Geologically in the Southwest Malay Basin, offshore Peninsular Malaysia | 30.03.2033 |
| PM305 | 60% | Geologically in the Southwest Malay Basin, offshore Peninsular Malaysia | 26.11.2029 |
| 2012 Kinabalu Oil | 60% | Sabah, offshore Malaysia | 25.12.2032 |
| PM3 CAA | 35% | Geologically in the Northeast Malay Basin, within the CAA between Malaysia and Vietnam | 1.12.2027 |
| Block 46 | 70% | Geologically in the Northeast Malay Basin, Vietnamese waters | 31.12.2027 |
The Group 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.
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. 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.”
Source: Hibiscus Petroleum
