Hibiscus gets Petronas Carigali nod for Shell’s 50% interest in North Sabah PSC

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KUALA LUMPUR (Dec 5): Independent oil and gas exploration and production company Hibiscus Petroleum Bhd has received Petronas Carigali Sdn Bhd’s consent to acquire from Sabah Shell Petroleum Company Limited and Shell Sabah Selatan Sdn Bhd’s (Shell) 50% participating interests in the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract (PSC).

In a statement today, Hibiscus said the PSC comprises four producing oil fields and associated infrastructure, namely St Joseph, South Furious, SF30, and Barton oil fields.

It said the PSC also contains pipeline infrastructure and the Labuan Crude Oil Terminal.

Hibiscus said total oil production (on a 100% PSC basis) averaged approximately 18,000 barrels per day (“bbl/day”) in 2015.

“The PSC provides long term production rights until 2040, with identified future developments opportunities,” Hibiscus added.

Currently, its 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, the company said.

“Hibiscus 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 as it increases production in the Anasuria Cluster.

“Over the past year, Brent crude oil prices have risen approximately 16% and closed at US$63.21/bbl as at Nov 30, 2017,” the statement said.

At midday break, Hibiscus fell 1.39% or 1 sen to 71 sen, with 11.33 million shares traded.