Hibiscus completes acquisition of Fortuna

Commenting on the completion, managing director 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.

KUALA LUMPUR: Hibiscus Petroleum Bhd’s subsidiary Peninsula Hibiscus Sdn Bhd has completed the acquisition of the entire equity interest in Fortuna International Petroleum Corp.

In a statement, the group said that out of the purchase price of US$212.5mil (RM890.2mil), the net amount paid at completion was US$123.65mil (RM518mil) after taking into account various adjustments including the deposit of US$15mil (RM63mil). It added that all conditions were fulfilled as at Jan 20, 2022.

Fortuna’s asset portfolio comprises interest and operatorship in five production sharing contracts (PSCs) in Malaysia and Vietnam.

Following the acquisition, Hibiscus expects its average daily oil and gas production 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 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.

He noted that the addition of gas production is expected to present a better balance to the 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,” he added.