KUALA LUMPUR (Jan 25): Hibiscus Petroleum Bhd said on Tuesday (Jan 25) that its indirect wholly-owned subsidiary Peninsula Hibiscus Sdn Bhd had successfully completed the acquisition of the entire equity interest in Fortuna International Petroleum Corporation (FIPC) from Repsol.

Hibiscus Petroleum noted in a statement that out of the purchase price of US$212.50 million (about RM890.06 million), the net amount paid at completion was US$123.65 million after taking into account various adjustments, including the deposit paid of US$15 million.

It said that the completion came shortly after all conditions were fulfilled as announced on Jan 20, 2022.

According to Hibiscus Petroleum, the asset portfolio comprises interests and operatorship under five production sharing contracts in Malaysia and Vietnam.

Hibiscus Petroleum said the group’s average daily oil and gas production is projected to increase almost threefold.

As the operator of the newly acquired assets, it added that the group is well positioned to build on the successful operational track record of its other producing assets in the UK and Malaysia.

“The completion of this acquisition brings to a close the process which began when we first bid for these assets and opens a new chapter in the group’s next phase of growth,

“We welcome on board the Repsol team into the Hibiscus family and look forward to working together on further enhancing value from these assets in 2022 and beyond,” said Hibiscus Petroleum managing director Dr Kenneth Gerard Pereira.

According to him, almost 50% of the production comprises gas, and the addition of gas production is expected to present a better balance to the group’s asset portfolio in terms of price stability, markets and operations.

He also said such diversification represents a key aspect of the group’s energy transition strategy as natural gas is regarded as an important bridging fuel as the world transits to a lower carbon energy mix.

“Finally, this transaction has been made possible with the strong support of our shareholders, industry regulators both in Malaysia and Vietnam as well as our business partners.

“Our current partnership with Petroliam Nasional Bhd (Petronas) and Petronas Carigali Sdn Bhd will be further strengthened, and we are excited to forge a new working relationship with PetroVietnam as we expand our geographic footprint into Vietnam,” he said.

At 9.38am on Tuesday, Hibiscus Petroleum was unchanged at 88 sen, valuing the group at RM1.77 billion.

The stock was halted from trading from 9am to 10am following the announcement.