A Hibiscus Petroleum subsidiary has agreed to acquire certain assets in Malaysia and Vietnam from Repsol.
The Malaysian assets include 35% interest in PM3 CAA PSC, 60% in 2012 Kinabalu Oil PSC, 60% in PM305 PSC, and 60% in PM314 PSC.
Repsol has been operating Kinabalu field, a mature offshore field located in the Malaysian basin of Sabah, since May 2015. Petronas holds the remaining 40%. In 2017, after a new crude extraction platform was installed, crude production was begun as part of the redevelopment project. The project comprises a new platform, connection lines to existing facilities in Kinabalu, and drilling ten additional production wells.
Now that the field is in the production stage, gross production will increase by 15.6 million bbl in reserves by 2032, according to Repsol’s website.
The deal also includes Repsol’s 70% interest in Block 46 CN in Vietnam (a tie-back asset to the PM3 CAA production facilities). Together, the assets represent 2% of Repsol’s global current net output.
This transaction follows Repsol’s sale producing assets in Russia, cessation of oil production activities in Spain, and reduction of exploratory activities to 14 core countries from 25 as part of its 2021-2025 strategic plan to streamline its upstream portfolio and decline/exit carbon intensive and non-core assets.
