The acquisition was first announced in June last year when Hibiscus Petroleum’s wholly-owned subsidiary, Peninsula Hibiscus, signed an agreement with Repsol Exploración to purchase the entire equity interest in Fortuna International Petroleum Corporation (FIPC), which held the assets.
Of the total purchase price, Hibiscus made a payment of $123.65m, after taking into consideration various adjustments, including the $15m deposit paid.
FIPC held stakes in five production sharing contracts (PSC) in Malaysia and Vietnam.
It includes 60% stakes in PSCs in PM314, PM305, and 2012 Kinabalu Oil, all located offshore Malaysia.
Hibiscus Petroleum also secured a 35% stake in the PSC PM3 commercial arrangement area (CAA) in the Northeast Malay basin, within the CAA, between Malaysia and Vietnam, and 70% in block 46, located in the Northeast Malay basin.
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As agreed earlier, Hibiscus Petroleum will also serve as the operator of the newly acquired assets.
Hibiscus Petroleum 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.
“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.”
The company expects that the acquisition will increase its average daily oil and gas production capacity threefold.
In December last year, Repsol reported a 0.91% decrease in total oil and gas production in September 2021.