Malaysian company Hibiscus Petroleum Bhd announced that its indirect wholly-owned subsidiary, Peninsula Hibiscus Sdn Bhd had inked a deal with Spanish energy major Repsol Exploración, S.A. to acquire their upstream assets in Vietnam.
|Malaysia's Hibiscus Petroleum Berhad makes its foray into Vietnam |
The proposed acquisition is a unique opportunity for the group to acquire a high-quality asset portfolio, comprising of four production sharing contracts in Malaysia and one in Vietnam with a total cash consideration of $212.5 million.
The group’s oil and condensate production will more than double from 9,000 barrels per day to 18,500 barrels per day in 2022. It will also contribute earnings before interest, tax, depreciation, and amortisation of $135 million to the group in 2022.
Commenting on the acquisition, Kenneth Pereira, the group's managing director said that, “We are pleased to announce that after an international, competitive bidding process, we have been selected by Repsol to acquire their Malaysian and Block 46 Vietnam assets. Once completed, this acquisition will be transformational for us and bodes well for the business trajectory of Hibiscus Petroleum into its next phase of growth."
"We will be enhancing our geographical footprint and entering Vietnam and thus we are looking forward to developing a strong working relationship with PetroVietnam, both as a regulator and as our new partner,” he added.
Hibiscus Petroleum Berhad is Malaysia’s first listed independent oil and gas exploration and production company. Its key activities are focused on monetising its oil fields and growing its portfolio of development and production assets in areas of its geographical focus, that is Malaysia, the United Kingdom, and Australia. The recent acquisition also marks the company's venture into the new market, Vietnam.