TotalEnergies to sell Brunei subsidiary to Hibiscus for $259mn [Update]
Update adds comments from Hibiscus
TotalEnergies has entered into an agreement to sell its wholly-owned subsidiary, TotalEnergies EP (Brunei), to Hibiscus Petroleum, a Malaysian independent oil and gas exploration and production company, for $259mn, it said on June 14. The transaction expected to close in the fourth quarter of 2024.
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TotalEnergies EP (Brunei) holds a 37.5% interest in Block B, located 85 km off the coast of Brunei. The other stakeholders in Block B are Shell, with a 35% interest, and Brunei Energy Exploration, holding 27.5%.
“This transaction fits with our strategy to actively manage our portfolio by monetising mature assets and to allocate our talents to the most promising assets,” said Jean-Pierre Sbraire, CFO of TotalEnergies.
Block B includes the Maharaja Lela/Jamalulam (MLJ) field, which began production in 1999 and yielded approximately 9,000 barrels of oil equivalent/day (boe/day) for TotalEnergies in 2023.
Hibiscus Petroleum in a separate statement said that the acquisition is expected to add a net of up to 21.7mn boe to its 2P reserves, marking a 36% increase from 60.9mn boe as of January 1, 2024. Additionally, total daily net production of oil, condensate, and gas is expected to increase by about 7,865 boe/day from 21,398 boe/day in 2024, bringing the gas production share of the company’s portfolio to almost 50%.
"The additional volumes from this transaction are material for Hibiscus Petroleum and will provide an uplift of nearly 86% to our gas production whilst bringing us closer towards achieving our 2026 mission of growing the group’s net production to 35,000-50,000 boe/day," Hibiscus managing director, Kenneth Pereira, said.