Hibiscus Petroleum Berhard’s subsidiary SEA Hibiscus has completed the acquisition of a 50% stake in the 2011 North Sabah enhanced oil recovery production sharing contract (PSC) and the joint operating agreement (JOA) in relation to the PSC from Shell.
In October 2016, SEA Hibiscus entered a conditional sale and purchase agreement (SPA) with Sabah Shell Petroleum Company and Shell Sabah Selatan (Shell).
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The SPA was executed to acquire Shell’s participating interests in the PSC between Petroliam Nasional Berhad (Petronas), Shell and Petronas Carigali for the total purchase consideration of $25m.
The deal also includes the JOA between Shell and Petronas Carigali.
The PSC includes the Labuan Crude Oil Terminal located in the Labuan Federal Territory in Malaysia, as well as 20 offshore platforms across four producing fields located in the South China Sea.
These fields have been active since 1979, while the recent contract will give operatorship and production rights to the Hibiscus group until 2040.
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By GlobalDataThe North Sabah PSC will also improve the group’s production and proven and probable reserves, known as 2P reserves.
On the basis of PSC, the total oil production averaged about 14.6 thousand barrels a day last year.
As of 1 January, 2P Reserves and contingent oil resources (2C Resources) were approximately 40.9 million barrels (mmbbls) and contingent oil resources at 79mmbbls.
Meeting all the conditions of the SPA, the role of operator of the North Sabah PSC has been now transferred from Shell to SEA Hibiscus on 31 March this year.
Operator SEA Hibiscus will oversee day-to-day operations and management activities of the assets within the North Sabah PSC.
SEA Hibiscus chief executive officer Dr Pascal Hos said: “We are pleased to welcome the highly capable team which has transferred from Shell to SEA Hibiscus and look forward to working closely with PETRONAS and PETRONAS Carigali to maximise the economic value of this asset.
“Whilst we are excited to develop the opportunities that have been identified to realise the considerable potential within the North Sabah PSC fields, our focus will be to improve the performance of the asset in a safe and environmentally responsible manner.”
