Strategic acquisition in Southeast Asia

Hibiscus Petroleum Berhad has entered into a definitive agreement to purchase TotalEnergies EP (Brunei) B.V., a wholly-owned subsidiary of TotalEnergies, for a substantial $259 million. This acquisition marks a significant expansion for Hibiscus Petroleum, further solidifying its presence in Southeast Asia's Energy sector.

Enhancing regional presence

This strategic transaction grants Hibiscus Petroleum a 37.5% stake in Block B offshore Brunei, which includes the highly productive Maharaja Lela/Jamalulam (MLJ) field. Block B, located 85 kilometers off the coast of Brunei, has been a valuable asset for TotalEnergies, contributing approximately 9,000 barrels of Oil equivalent per day in 2023.

Focus on portfolio optimization

The deal aligns with TotalEnergies' ongoing strategy to optimize its portfolio by monetizing mature assets. Jean-Pierre Sbraire, Chief Financial Officer of TotalEnergies, stated that this transaction allows the company to focus its resources and expertise on more promising ventures, while still ensuring a stable Energy supply in the region.

Benefits for Hibiscus Petroleum

For Hibiscus Petroleum, this acquisition is set to enhance its Gas production portfolio significantly. The addition of the Maharaja Lela/Jamalulam field is expected to boost the company’s overall production capacity, ensuring a more robust and diversified asset base. This move is anticipated to increase Hibiscus Petroleum’s share of Gas production to nearly 50%, underscoring its commitment to expanding its footprint in the Oil and Gas industry.

Impact on the Southeast Asian Energy market

This acquisition by Hibiscus Petroleum represents a pivotal moment in the Southeast Asian Energy market, showcasing the company's strategic vision and commitment to growth. The transaction, expected to close in the fourth quarter of 2024, will likely have a lasting impact on the regional Energy landscape, benefiting stakeholders and contributing to Energy security in the area.

‍