SEA Hibiscus completes North Sabah PSC acquisition from Shell

April 2, 2018
SEA Hibiscus, an indirect wholly owned subsidiary of Hibiscus Petroleum, has completed its acquisition of a 50% participating interest in the 2011 North Sabah enhanced oil recovery production-sharing contract and the joint operating agreement in relation to the PSC.

SEA Hibiscus Sdn. Bhd., an indirect wholly owned subsidiary of Hibiscus Petroleum Bhd., has completed its acquisition of a 50% participating interest in the 2011 North Sabah enhanced oil recovery production-sharing contract and the joint operating agreement in relation to the PSC (OGJ Online, Nov. 11, 2011).

On Oct. 12, 2016, SEA Hibiscus had entered into a conditional sale and purchase agreement with Sabah Shell Petroleum Co. Ltd. and Shell Sabah Selatan Sdn. Bhd. to acquire Shell’s participating interests in the PSC between Petronas, Shell, and Petronas Carigali Sdn. Bhd. and the JOA between Shell and Petronas Carigali for $25 million.

The North Sabah PSC includes 20 offshore platforms across four producing fields in the South China Sea off the west coast of Sabah and the Labuan crude oil terminal in Malaysia’s Labuan federal territory. The fields have been producing since 1979 and the PSC provides the group with operatorship and production rights up to 2040.

The North Sabah PSC will boost the group’s production and proved and probable reserves. On a 100% PSC basis, the total oil production averaged 14,600 b/d in 2017, with 2P reserves and contingent oil resources as of Jan. 1 at respective totals of 40.9 million bbl and 79 million bbl.

SEA Hibiscus assumed the role of operator of the North Sabah PSC on Mar. 31.