Spanish oil and gas company Repsol has agreed to sell its E&P assets in Malaysia and in Block 46 CN in Vietnam to a fully-owned subsidiary of Malaysia’s Hibiscus Petroleum.
The sale of Repsol’s upstream assets in Malaysia and in Block 46 CN in Vietnam supports the company’s broader rationalization of its global portfolio, the Spanish company said in a statement on Tuesday.
The move is streamlining the company’s presence from 25 to 14 core countries within the framework of the multi-energy company’s 2021-2025 Strategic Plan that focuses on the geographic areas with the greatest competitive advantages.
The transaction includes a 35 per cent interest in PM3 CAA PSC, 60 per cent in 2012 Kinabalu Oil PSC, 60 per cent in PM305 PSC, 60 per cent in PM314 PSC, and 70 per cent in Block 46 CN in Vietnam (a tie-back asset to the PM3 CAA production facilities).
These assets represent approximately 2 per cent of Repsol’s global current net output.
This transaction follows the sale of the company’s producing assets in Russia, the cessation of oil production activities in Spain, and the exit from exploratory activity in other countries.
The funds raised from the transaction as well as the resulting capex savings will contribute to the global strategic goal of funding core projects and new low-carbon initiatives. The agreement is subject to regulatory approval and the waiver of partners’ preemption rights.
Malaysia’s Hibiscus also has assets in the UK where it is currently, together with Ithaca Energy, revisiting the concept development for a pair of North Sea discoveries the two companies will develop together.