KUALA LUMPUR (April 16): Simpor Hibiscus Sdn Bhd, a unit of Hibiscus Petroleum Bhd (KL:HIBISCS), signed a US$100 million (RM440.95 million) Islamic financing deal with Bank Islam Brunei Darussalam (BIBD) and Baiduri Bank to support its expansion in Brunei's oil and gas (O&G) sector.
The agreement marks a strategic move for Hibiscus as a new operator in Brunei, Hibiscus said in a statement.
Simpor Hibiscus completed the US$259 million purchase of TotalEnergies EP (Brunei) BV in October, which granted a 37.5% operated interest in the mature Maharaja Lela/Jamalulalam (MLJ) gas field located in Block B, approximately 85km offshore Brunei.
The MLJ field, which commenced production in 1999, has substantial remaining reserves and contributes about 6% to Brunei's total gas output.
Hibiscus chairman Zainul Rahim said the financing deal reflects shared values between the company and its Bruneian banking partners.
“This is not just a formal agreement; it is an expression of our belief that we see a long-term future in Brunei. This signing ceremony marks a pivotal moment in our collective efforts to foster economic growth, enhance local value, and contribute to the sustainable development of Brunei Darussalam," he said.
BIBD, serving as lead arranger and structuring bank, highlighted the financing as a milestone in driving strategic investments aligned with national goals.
Baiduri Bank described the collaboration as key to fostering value for Brunei’s communities and contributing to sustainable development.
The agreement aims to enhance knowledge transfer, employment, and local SME growth in Brunei’s energy supply chain, the statement read.
A signing ceremony was held in Bandar Seri Begawan on April 16, attended by Brunei's Finance and Economy Minister II Dr Awang Haji Mohd Amin Liew.
BIBD is Brunei’s largest Islamic bank, while Baiduri Bank holds several top banking accolades and a strong local presence.
Shares of Hibiscus fell three sen or 2.01% to RM1.46, giving it a market capitalisation of RM1.12 billion.