Malaysian tax: Hibiscus takes action against Sabah government

August 15, 2022

Dateline 2022-06-08, Upstream Online:

Malaysian independent Hibiscus Petroleum said it has elected to stop paying the Sabah state government a tax levy that it previously paid “under protest”.

The state sales tax is levied by the Sabah government in relation to the sale of oil, produced from the Kinabalu oilfield, according to the terms of the Kinabalu oil production sharing contract, Hibiscus said.

Hibiscus Petroleum receives waiver of pre-emption rights on Repsol assets, comes closer to concluding US$212.5m acquisition

July 29, 2021

Dateline 2021-07-14, The Edge:

One of the conditions precedent in Hibiscus Petroleum Bhd’s acquisition of upstream oil and gas assets from Spanish oil major Repsol has been fulfilled, which brings the oil explorer one step closer to concluding its acquisition of the latter’s upstream assets in Malaysia and Vietnam.

In a statement, Hibiscus said that it has been informed by Repsol Exploración S.A that the waiver and/or expiry of pre-exemption rights held by Petronas Carigali Sdn Bhd and PetroVietnam Exploration Production Corp under each of the relevant joint operation agreement for the assets had been satisfied.

Repsol Sells E&P Assets in Malaysia, Vietnam to Hibiscus Petroleum

July 13, 2021

Dateline 2021-06-01, Offshore Engineer:

Spanish oil company Repsol is set to sell its oil and gas exploration and production assets in Malaysia and in Block 46 CN in Vietnam to Malaysia-based Hibiscus Petroleum for an undisclosed fee.

Repsol said that the sale of its upstream assets in Malaysia and in Block 46 CN in Vietnam supported its plan to reduce its presence from 25 to 14 core countries.

Repsol said it was concentrating its upstream activity on 14 key projects centered around producing basins and executed through lean modular development, prioritizing value over volume.

Hibiscus Wraps Infill Drilling Campaign Offshore Malaysia

November 26, 2020

Dateline 2020-11-02, Offshore Engineering:

Malaysia’s Hibiscus Petroleum completed the St Joseph minor sands infill and major sands redevelopment infill drilling campaign in its North Sabah PSC, Malaysia.

The offshore drilling campaign involved the drilling and completion of four infill oil producers on the St Joseph Jacket-F (“SJJT-F”) platform. 

Through the infill drilling development campaign, Hibiscus says it has added an instantaneous incremental 2,200 barrels per day of crude oil production and added approximately 4 million stock tank barrels of incremental life of field gross reserves.

Exxon eyes shortlist for Malaysian oil and gas assets

October 30, 2020

Dateline 2020-09-25, Oil & Gas 360:

Exxon Mobil has narrowed the list of bidders for its oil-producing offshore assets in Malaysia that could potentially raise $2 billion to $3 billion in a sale, according to people with knowledge of the matter.

U.K.-listed EnQuest Plc and Kuala Lumpur-traded Hibiscus Petroleum Bhd. are among those that have been chosen to submit binding bids for the assets, the people said. Other companies have also expressed interest, said the people, who asked not to be identified as the discussions are private.

Exxon Mobil started the process to sell its Malaysian assets last year as part of its global divestiture program, Bloomberg News has reported. It produces oil and gas in the Southeast Asian nation under four production sharing contracts with the state-owned Petroliam Nasional Bhd., according to its website.

Hibiscus Petroleum Completes Acquisition of North Sabah PSC from Shell

June 1, 2018

Dateline 2018-04-01, 360 Feed Wire:

Hibiscus Petroleum Bhd (HIBISCS; MYX: 5199) is pleased to announce that its indirect wholly owned subsidiary SEA Hibiscus Sdn Bhd (SEA Hibiscus) has completed its acquisition of a 50% participating interest in the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract (North Sabah PSC or PSC) and the joint operating agreement (JOA) in relation to the PSC.

To recap, SEA Hibiscus had, on 12 October 2016, entered into a conditional sale and purchase agreement (SPA) with Sabah Shell Petroleum Company Limited and Shell Sabah Selatan Sdn Bhd (collectively Shell) to acquire Shell’s participating interests in the PSC between Petroliam Nasional Berhad (PETRONAS), Shell and PETRONAS Carigali Sdn Bhd (PETRONAS Carigali), and the JOA between Shell and PETRONAS Carigali for the total purchase consideration of US$25 million.

The North Sabah PSC includes 20 offshore platforms across four producing fields located in the South China Sea, off the west coast of Sabah, and the Labuan Crude Oil Terminal located in the Labuan Federal Territory, in Malaysia. The fields have been producing since 1979 and the PSC provides the Group with operatorship and production rights up to 2040.

Big oil and gas players may continue asset buys this year: Hibiscus

April 20, 2018

Dateline 2018-03-01, NST:

Asset acquisitions in the oil and gas industry may continue this year as big players seek to increase their capital expenditure while oil prices are rebounding.

This will also benefit smaller players like Hibiscus Petroleum Bhd in the hunt for potential new brownfield assets as rationalisation by the big players continue.

Since oil price plummeted in 2014, the global oil and gas industry saw high number of mergers and acquisition (M&As) deals where big players carried out their rationalisation plans, cut down costs and capital deployment, as well as sold assets to smaller players.

Bloomberg data showed M&As in the industry picked up since 2013 to reach its highest volume level of 428.2 billion in 2017.

According to Financial Times, quoting Mergermarket, M&As had risen by 40 per cent to US$270 billion in the first nine months of last year, compared with US$192 billion in the same period in 2016.

Hibiscus – the story of a successful SPAC

April 5, 2018

Dateline 2018-02-24, The Star:

THE story of Hibiscus Petroleum Bhd’s growth is an interesting one, considering its funding needs have virtually all come from private investors. The debt-free independent exploration and production company has achieved a few notable milestones.

Not only has it survived making expensive acquisitions before the oil price crash (when it lived as a special-purpose acquisition company or SPAC), it also went through the oil crash and has come out smiling, by being cashflow positive.

No doubt, there have been investors who lost money along the Hibiscus journey, but there have been a number of investors who have rode its recovery well and are sitting pretty.


Malaysia’s Hibiscus To Buy Shell’s 50% Stake In North Sabah Production Contract

January 29, 2018

Dateline 2017-12-05, Nikkei Asian Review:

Hibiscus Petroleum, a Malaysian petroleum exploration and production firm, said Tuesday it plans to buy Shell’s 50% stake in the 2011 North Sabah enhanced oil recovery production-sharing contract.

The company has secured unconditional consent from the national oil-and-gas company Petronas for the proposed acquisition of the North Sabah contract from the Dutch oil major, Hibiscus said in an exchange filing. The contract provides production rights until 2040, the company said.

Hibiscus to buy Shell’s operatorship of four oil fields offshore Sabah

November 25, 2016

And that settles my thoughts as to when Hibiscus was going to spend its money, and who would want to buy the Shell Sabah blocks.

Dateline 2016-10-12, The Star:

Shell has reached an agreement to sell its 50% equity interest in the 2011 North Sabah enhanced oil recovery (EOR) production sharing contract (PSC) to Hibiscus Petroleum Bhd’s indirect unit SEA Hibiscus Sdn Bhd for US$25mil (RM104.8mil).

The amount excludes post completion adjustments and reimbursements to Shell.

Currently, Sabah Shell Petroleum Co (25%) is the operator, partnering with Shell Sabah Selatan (25%) and Petronas Carigali Sdn Bhd (50%) in the PSC, which includes the Labuan Crude Oil Terminal, and the fields of St Joseph, South Furious, SF30 and Barton, all located offshore Sabah.

Total oil production (on a 100% PSC basis) averaged 18 kilobarrels (kbbls) per day last year, according to statements from Shell and Hibiscus.