KUALA LUMPUR (Aug 23): Hibiscus Petroleum Bhd’s (KL:HIBISCS) indirect wholly owned subsidiary Straits Hibiscus Sdn Bhd has signed an agreement to acquire a 30% participation interest in the Block PM327 production sharing contract (PSC).

The acquisition is being made through a farm-in arrangement with Petronas Carigali Sdn Bhd, said Hibiscus Petroleum in a statement on Friday. 

The transaction is currently pending regulatory approvals and fulfilment of conditions precedent.

Hibiscus Petroleum’s country head for Malaysia and Vietnam Dr Pascal Hos said the group has had an interest in PM327 for some years.

“The proximity of the northern area of the block to the PM3 Commercial Arrangement Area (PM3 CAA) offers significant synergistic opportunities upon any discoveries.

“We look forward to putting our collective experience and expertise to work towards the successful exploration of Block PM327 with Petronas Carigali and E&P Malaysia Venture Sdn Bhd (EPMV),” he said.

The PM327 PSC was offered as part of the Malaysia Bid Round 2022 by Malaysia Petroleum Management, and was awarded to Petronas Carigali and EPMV in 2023.

The PM327 PSC, one of the largest exploration blocks offshore Peninsular Malaysia, is located to the south of the PM3 CAA PSC.

According to the statement, the PM3 CAA PSC is within a commercial arrangement area between Malaysia and Vietnam, and is operated by another wholly owned subsidiary of Hibiscus Petroleum.

The PM327 PSC covers an area of more than 12,500 sq km, with water depths ranging between 20 metres and 75 metres.

Exploration activities have commenced since 2023, and the programme includes the acquisition of new 3D seismic, reprocessing of existing seismic data and phased drilling of exploration wells.

Read also:
Petronas awards three PSCs for discovered resource clusters, more to come
Hibiscus awarded 65% participating interest in PSC by Petronas

Uploaded by Tham Yek Lee