KUALA LUMPUR: Hibiscus Petroleum Bhd's subsidiary Straits Hibiscus Sdn Bhd has signed an agreement to buy a 30 per cent participating interest in the Block PM327 production sharing contract (PSC).
The acquisition was made through a farm-in arrangement with Petronas Carigali Sdn Bhd, Hibiscus Petroleum said in a statement today.
The transaction is currently pending regulatory approvals and fulfilment of conditions precedent.
Hibiscus Petroleum country head for Malaysia and Vietnam Dr Pascal Hos said it had had interest in PM327 for some years.
The proximity of the northern area of the block to PM3 commercial arrangement area (PM3 CAA) offers significant synergistic opportunities upon any discoveries.
"We are very familiar with the geology of the area which has produced many notable discoveries, and we look forward to putting our collective experience and expertise to work towards the successful exploration of Block PM327 with Petronas Carigali and E&P Malaysia Venture Sdn Bhd (EPMV)," he added.
The PM327 PSC was offered as part of the Malaysia Bid Round 2022 by Malaysia Petroleum Management (MPM), and was awarded to Petronas Carigali and EPMV in 2023.
The PM327 PSC, being one of the largest exploration blocks offshore Peninsular Malaysia, is located to the south of the PM3 CAA PSC.
The PM3 CAA PSC is within a commercial arrangement area between Malaysia and Vietnam and is operated by another subsidiary of Hibiscus Petroleum.
The PM327 PSC covers an area of more than 12,500 square kilometres, with water depths ranging between 20 to 75 metres.
Exploration activities have commenced since 2023 and the program includes the acquisition of new 3D seismic, reprocessing existing seismic data and the phased drilling of exploration wells