Hibiscus gets green light to buy Shell’s North Sabah oil fields

Malaysia’s Hibiscus Petroleum has received consent from Petronas under the joint operating agreement to acquire a 50% participating interest in the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract from Shell. 

Shell signed a deal with Hibiscus Petroleum to sell its entire participating interests in the 2011 North Sabah EOR PSC back in October 2016. The deal was subject primarily to obtaining regulatory approval of Petronas and its subsidiary Petronas Carigali, which has now been obtained.

The PSC comprises four producing oil fields and associated infrastructure i.e. St Joseph, South Furious, SF30, and Barton oil fields. The PSC also contains pipeline infrastructure and the Labuan Crude Oil Terminal. Total oil production averaged approximately 18,000 barrels per day in 2015. The PSC provides long term production rights until 2040 with identified future developments opportunities.

Currently, Hibiscus Petroleum’s main operating asset is a 50%-stake in the Anasuria Cluster, a concession in the North Sea off the United Kingdom, which was acquired in March 2016.

Hibiscus Petroleum said it is optimistic that oil prices will more likely increase or remain at the current level in the near to medium term and the recent price recovery will support the group’s performance for as it increases production in the Anasuria Cluster.

Hibiscus Petroleum achieved an average realized price of $51.54/barrel in the first financial quarter ended September 30, 2017, 14% higher compared to $45.21/bbl achieved in the corresponding preceding quarter.