Hibiscus Petroleum to acquire TotalEnergies Brunei RM1.2b

HIBISCUS Petroleum Bhd has found a footing in the Brunei energy industry with a proposed acquisition from French-based TotalEnergies Holdings International BV.

It said its wholly owned subsidiary Simpor Hibiscus Sdn Bhd has entered into a conditional share purchase agreement (SPA) with TotalEnergies for the proposed acquisition of the entire equity interest in TotalEnergies EP (Brunei) for US$259.4 million (about RM1.223 billion).

In a statement, Hibiscus said the proposed acquisition was for TotalEnergies Brunei’s 37.5% operated interest in the Maharaja Lela/Jamalulam (MLJ) field, described as a high-quality gas asset located offshore Brunei.

Hibiscus Petroleum MD Dr Kenneth Pereira said the additional volumes from this transaction are material for Hibiscus Petroleum and will provide an uplift of nearly 86% to its gas production whilst bringing it closer towards achieving its 2026 Mission of growing the group’s net production to 35,000 – 50,000 boe per day.

“We have been looking for the right opportunity to enter the Brunei energy industry for some time,” he said in a statement released today.

TotalEnergies CFO Jean-Pierre Sbraire said: “This transaction fits with our strategy to actively manage our portfolio by monetizing mature assets and to allocate our talents to the most promising assets.”

Block B, located 85 kilometers off the coast of Brunei, contains the MLJ field, which started producing in 1999 and represented a net production for TotalEnergies of approximately 9,000 barrels of oil equivalent per day in 2023, according to its statement.

On its part, Hibiscus said the proposed acquire asset was located in a prolific hydrocarbon-bearing region.

It said the asset has long-term production rights of up to 15 years (expiring on Nov 23, 2039), if extended with the agreement of the joint venture parties.

It said other parties holding the remaining interest in the asset were Shell Deepwater Borneo Ltd (35.0%) and Brunei Energy Exploration Sdn Bhd (27.5%), a company ultimately owned by Brunei Minister for Finance Corporation.

Hibiscus Petroleum is Malaysia’s first listed independent oil and gas exploration and production company. Its stocks closed at RM2.43 yesterday (52-week high/low: RM2.98/RM2.12), valuing the company at RM1.96 billion. — TMR