CEO Morning Brief

Hibiscus Completes 30% Stake Acquisition in Largest Peninsular Malaysia Offshore Block

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Publish date: Tue, 08 Oct 2024, 09:40 AM
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TheEdge CEO Morning Brief
 

KUALA LUMPUR (Oct 7): Hibiscus Petroleum Bhd (KL:HIBISCS) said that it has completed the farm-in arrangement with Petronas Carigali Sdn Bhd to acquire a 30% participation interest in the PM327 production sharing contract (PSC).

The independent oil and gas company’s indirect wholly owned unit Straits Hibiscus Sdn Bhd has received regulatory approvals from the national oil firm Petroliam Nasional Bhd (Petronas), through Malaysia Petroleum Management (MPP), it said in a filing to Bursa Malaysia.

“[The regulatory approvals] have been obtained and conditions precedent have been fulfilled as of Sept 30, 2024, thereby achieving completion of the farm-in,” Hibiscus said without disclosing the transaction value.

Hibiscus had announced on Aug 23, the plan to acquire the 30% stake in PM327, the largest exploration block offshore of Peninsular Malaysia, which is located to the south of the PM3 Commercial Arrangement Area (PM3 CAA) in the Northeast Malay Basin, offshore Malaysia and Vietnam.

The PM327 PSC covers an area of more than 12,500 sq km, with water depths ranging between 20 metres and 75 metres.

Meanwhile, the exploration activities have commenced in 2023, including the acquisition of new 3D seismic data, reprocessing of existing seismic data, and phased drilling of exploration wells, Hibiscus had previously said.

Shares of Hibiscus were traded two sen or 0.87% lower to RM2.29 at noon break on Monday, valuing the company at RM1.84 billion.

Source: TheEdge - 8 Oct 2024

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