Hibiscus to buy upstream assets from Spanish oil major Repsol
KUALA LUMPUR (June 2): Spanish oil and gas (O&G) company Repsol has agreed to sell its exploration and production (E&P) assets in Malaysia and in Block 46 CN in Vietnam to a wholly-owned subsidiary of Hibiscus Petroleum Bhd.
In a bourse filing with Bursa Malaysia, Hibiscus announced that trading of its shares will be suspended from 9am today pending a material announcement. Shares in Hibiscus were last traded at 66 sen, valuing it at RM1.3 billion.
This confirmed The Edge Malaysia weekly’s article titled "Repsol said to be looking to exit Malaysia".
Citing sources, The Edge reported it was understood that Repsol had ruled in an international investment bank to assist in the sale of its upstream business in Malaysia.
In a statement yesterday, Repsol said the sale of its upstream assets in Malaysia and in Block 46 CN in Vietnam is part of its efforts to streamline its presence from 25 to 14 core countries in order to focus on geographic areas with the greatest competitive advantages.
However, the Spanish firm did not reveal the price tag of the deal.
“The transaction includes a 35% interest in PM3 CAA PSC, 60% in 2012 Kinabalu Oil PSC, 60% in PM305 PSC, 60% in PM314 PSC and 70% in Block 46 CN in Vietnam (a tie-back asset to the PM3 CAA production facilities). These assets represent approximately 2% of Repsol’s global current net output.
"The transaction follows the sale of the company’s producing assets in Russia, the cessation of oil production activities in Spain and the exit from exploratory activity in other countries,” it said.
The agreement is subject to regulatory approval and the waiver of partners’ pre-emption rights, said the Spanish firm.