Hibiscus Petroleum buys TotalEnergies Brunei for US$259.4mil

Hibiscus Petroleum Bhd managing director Dr Kenneth Pereira

KUALA LUMPUR: Hibiscus Petroleum Bhd has proposed to acquire the entire equity interest in TotalEnergies EP (Brunei) B.V. (TotalEnergies Brunei) for a total cash consideration of US$259.4mil.

In a filing with Bursa Malaysia, Hibiscus Petroleum said its wholly owned subsidiary Simpor Hibiscus Sdn Bhd entered into a conditional share purchase agreement (SPA) with TotalEnergies Holdings International B.V. for the proposed acquisition of TotalEnergies Brunei.

Hibiscus Petroleum said the proposed acquisition is for TotalEnergies Brunei’s 37.5% operated interest in the MLJ field, a high-quality gas asset located offshore Brunei.

Located in a hydrocarbon-rich area, the asset was discovered in 1989 and has been producing gas and condensate since 1999. It has production rights up to 15 years, expiring on Nov 23, 2039, if extended by the joint venture parties.

Other parties holding the remaining interest in the Asset are Shell Deepwater Borneo Limited (35.0%) and Brunei Energy Exploration Sdn Bhd (27.5%), a company ultimately owned by Brunei Minister for Finance Corporation.

Hibiscus Petroleum said this asset is expected to add a net of up to 21.7 MMboe to the group’s 2P reserves, an increase of 36% from 60.9 MMboe to 82.6 MMboe as at Jan 1, while total daily net production of oil, condensate and gas is expected to increase by circa 7,865 boe per day from 21,398 boe per day to 29,263 boe per day in CY2024.

“This is expected to bring the gas production share of the group’s portfolio to almost 50%, in line with the group’s energy transition strategy of acquiring gas-weighted assets in stable regulatory jurisdictions. This transaction also represents a significant step towards fulfilling the group’s aspiration of becoming a net zero emissions producer by 2050,” it said.

Managing director Dr Kenneth Pereira said the group has been looking for the right opportunity to enter the Brunei energy industry for some time.

He said the extra volumes from this deal are significant for Hibiscus Petroleum, increasing its gas production by almost 86%. This move brings them closer to their 2026 goal of growing net production to 35,000 - 50,000 boe per day.

“In addition, employees of TotalEnergies Brunei, who have been operating this asset safely and efficiently for many years will be joining the group as part of the transaction. They bring with them a wealth of knowledge and

experience. We welcome them and we look forward to working together to enhance the value of the asset safely and efficiently for all stakeholders.

“Most importantly, we are excited by the opportunity to work with our joint venture partners, Shell Deepwater Borneo, Brunei Energy Exploration as well as the government of Brunei,” he said.

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