KUALA LUMPUR: Hibiscus Petroleum Bhd
has completed its acquisition of 50% participating interest in the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract (PSC) and the joint operating agreement (JOA) in relation to the PSC.
Following the US$25mil acquisition, Hibiscus' unit SEA HIbiscus Sdn Bhd assumed the role of operator of the North Sabah PSC.
The other holders of the PSC are Petronas and Petronas Carigali, while the JOA now stands between SEA Hibiscus and Petronas Carigali.
According to Hibiscus, the North Sabah PSC includes 20 offshore platforms across four producing fields located in the South China Sea, off the west coast of Sabah, and the Labuan Crude Oil Terminal located in the Labuan.
"The North Sabah PSC constitutes our second producing asset, providing the Company with another revenue stream after the Anasuria Cluster. It is an exciting time for Hibiscus Petroleum as we expand and strengthen our technical and operating capabilities, profitability and balance sheet.
"This is an example of Hibiscus Petroleum’s strategy to grow shareholder value by focusing our activities on assets where we believe we can offer a unique value proposition to enhance production from mature assets in regions of our geographic focus,” said Hibiscus Petroleum chairman Zainul Rahim.
Hibiscus said the North Sabah PSC will significantly boost the group's production and proven and probable reserves.