Hibiscus Petroluem subsidiary SEA Hibiscus has entered into a conditional sale and purchase agreement with Sabah Shell Petroleum and Shell Sabah Selatan to acquire Shell’s entire fifty percent participating interests in the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract (PSC) as well as operatorship for $25m.
The deal is expected to complete in 2017 and is subject to obtaining the regulatory approval of Petronas, the joint venture partner in the PSC.
The PSC includes four producing oil fields and associated infrastrucuture.
“This acquisition is in line with the growth strategy of the group to invest in profitable development and producing business operations in our identified core geographical areas of interest,” said Dr. Kenneth Pereira, managing director of Hibiscus Petroleum.