**Hibiscus Petroleum Marks Entrance into Offshore Brunei Darussalam Block with Strategic Asset Acquisition**
Hibiscus Petroleum, a prominent player in the upstream oil and gas sector, has made a significant move by confirming its entry into offshore Brunei Darussalam through the acquisition of TotalEnergies EP (Brunei). This strategic acquisition positions Hibiscus as a major stakeholder in the gas-producing Block B Maharajalela Jamalulalam field, further diversifying its portfolio in the region.
The acquisition involves Hibiscus subsidiary, Simpor Hibiscus, acquiring a 37.5% operated interest in the Block B concession. The remaining interests are held by Shell Deepwater Borneo with 35% and Brunei Energy Exploration with 27.5%.
This move marks a strategic shift for Hibiscus Petroleum as it aligns with the global trend towards a lower carbon energy mix. According to Dr. Kenneth Gerard Pereira, the managing director of Hibiscus Petroleum, “This acquisition provides a better balance to our asset portfolio as the world transitions to a lower carbon energy mix with higher global demand for natural gas.”
**Historical Context and Asset Overview**
– **Block B Maharajalela Jamalulalam Field**: Located approximately 85 kilometers offshore Brunei, this field has been producing since 1999. In 2023, it delivered 9,000 barrels of oil equivalent per day (boe/d) to TotalEnergies.
– **Concession Period**: The current concession period runs through November 2029, with potential for extension subject to agreement with the partners.
– **Acquisition Consideration**: TotalEnergies agreed to sell its wholly owned subsidiary, TotalEnergies EP (Brunei), for $259 million. This transaction is expected to close during the fall of 2024.
– **Impact on Hibiscus Assets**: This acquisition will bolster Hibiscus’ production volumes and reserves. The MLJ field is characterized as a high-quality gas asset in a prolific hydrocarbon-bearing region. It is anticipated that Hibiscus will enhance its technical and operational capabilities in the region with this addition.
**Future Outlook for Hibiscus in Brunei**
Hibiscus Petroleum’s entry into Block B Maharajalela Jamalulalam marks a significant milestone in the company’s expansion strategy. By acquiring this producing gas asset, Hibisc