Hibiscus Petroleum to take over 4 oil fields off Sabah

PETALING JAYA: Hibiscus Petroleum Bhd is taking over the operatorship and buying a 50% participating interest in the 2011 North Sabah Enhanced Oil Recovery production sharing contract that operates four existing oil fields and pipeline infrastructure for US$25 million (RM104.63 million).

Subsidiary Sea Hibiscus Sdn Bhd signed a share sale agreement with Sabah Shell Petroleum Co Ltd and Shell Sabah Selatan Sdn Bhd, which holds a 25% interest in the PSC each.

The four producing fields are in the South China Sea, off the coast of Sabah, in a key hydrocarbon province in Malaysia and have delivered reliable production since coming onstream in 1979. With long-term production rights until 2040, and identified future development opportunities expected to add incremental 2P/2C resources up to 79 million barrels, Hibiscus told Bursa Malaysia in its filing.

Hibiscus will finance the transaction with internally generated funds and external financing/credit facility.