Hibiscus completes acquisition of Repsol's assets in Malaysia, Vietnam

Kuala Lumpur-listed Hibiscus Petroleum has successfully completed the acquisition of Repsol’s oil and gas assets in Malaysia and Vietnam, it said on January 25. The deal was announced last year.

Hibiscus’ subsidiary, Peninsula Hibiscus, completed the acquisition of the entire equity interest in Fortuna International Petroleum Corporation from Repsol on January 24. Out of the purchase price of $212.5mn, the net amount paid at completion is $123.65mn after taking into account various adjustments including the deposit paid of $15mn, the company said. The completion comes shortly after all conditions were fulfilled.

Fortuna has interests/operatorships in five production-sharing contracts offshore Malaysia and Vietnam.

“Almost 50% of the production comprises gas. The addition of gas production is expected to present a better balance to our group’s asset portfolio in terms of price stability, markets and operations,” Hibiscus managing director Kenneth Gerard Pereira said. “Such diversification represents a key aspect of our energy transition strategy as natural gas has been regarded as an important bridging fuel as the world transits to a lower carbon energy mix.”

As a result of the acquisition, Hibiscus said its average daily oil and gas production is projected to increase almost threefold.