by MARK RAO / graphic by TMR
Hibiscus Petroleum Bhd completed the US$25 million acquisition of a stake in the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract (PSC), bringing the group’s total production to as high as 9,500 barrels a day from the previous 3,500 barrels.
The exploration and production company acquired a 50% stake in the PSC from Royal Dutch Shell Plc-units Sabah Shell Petroleum Company Ltd and Shell Sabah Selatan Sdn Bhd via its indirect wholly-owned subsidiary SEA Hibiscus Sdn Bhd.
Located in the South China Sea off the west coast of Sabah, the North Sabah PSC achieved a total daily production of 14,600 barrels a day over last year, while it retained 40.9 million and 79 million barrels in production and proven and probable reserves (2P) and contingent oil resources (2C) respectively as of the start of 2018.
Hibiscus Petroleum will be entitled to 50% of the PSC with Petroliam Nasional Bhd-unit Petronas Carigali Sdn Bhd holding the balance.
“The North Sabah PSC constitutes our second producing asset, providing the company with another revenue stream after the Anasuria Cluster [in the UK],” Hibiscus Petroleum chairman Zainul Rahim said in a statement today.
He said the North Sabah acquisition is part of the company’s strategy to enhance production from mature assets in regions of its geographic focus.
The North Sabah PSC comprises 20 offshore platforms spread across four producing fields and have been producing since 1979.
Hibiscus Petroleum will have production and operational rights up to 2040.