KUALA LUMPUR: Hibiscus Petroleum Bhd's acquisition of TotalEnergies in Brunei will start to contribute to its earnings from the financial year ending June 30, 2025 (FY25), said managing director Dr Kenneth Pereira.
He highlighted that the acquisition brings significant benefits to the upstream oil and gas operator, including increased gas production and enhanced company valuations.
"Before the Brunei acquisition, our production mix was 36 per cent gas and 64 per cent oil and condensate. Post-acquisition, it has shifted to 49 per cent gas and 51 per cent oil and condensate. This aligns with our energy transition strategy, in which we aim to be more gas-weighted.
"We are making steady progress in that direction, and the Brunei asset plays a crucial role in this journey. Additionally, the greenhouse gas (GHG) intensity of this asset is approximately 11 kilogrammes (kg) of carbon dioxide per barrel produced, which is significantly lower than the global average at 18 kg," he shared in a recent interview with Bernama.
On October 14, Hibiscus Petroleum completed its acquisition of TotalEnergies EP (Brunei) BV's 37.5 per cent operated interest in the Block B Maharajalela Jamalulalam (MLJ) field. This high-quality gas asset, located offshore Brunei, represents a valuable addition to Hibiscus Petroleum's portfolio.
With this acquisition, Hibiscus Petroleum now holds a 37.5 per cent stake and assumes the role of operator for the gas field. As part of the acquisition, TotalEnergies EP Brunei has officially transitioned to its new legal entity name, Hibiscus EP (Brunei) B.V.
"The first step is to stabilise our whole operation (in Brunei) while building relationships with the Brunei government, regulators, as well as the oil and gas community," he said.
Pereira highlighted that nearly 84 per cent of production from the MLJ field is gas. Following this transaction, the group has achieved a 34 per cent increase in its daily production, bringing it to approximately 28,000 barrels of oil equivalent per day.
As at July 1, 2024, Hibiscus Petroleum holds approximately 78 million barrels of oil equivalent of 2P reserves.
"This (MLJ field) is a gas asset that is cash generating and comes with operatorship, allowing us to manage the fields directly. That aspect is very attractive to us. Additionally, the tenure of the concession extends until 2029, with an option for the current partners to extend it further by 10 years, taking it to 2039. This gives us a long and promising runway ahead," Pereira explained.
He also revealed that Hibiscus Petroleum is evaluating a potential collaboration with TotalEnergies Brunei to jointly develop a 13-megawatt solar facility to support the asset.
"We are carefully assessing this opportunity to ensure it aligns with our long-term goals and that we are confident in the underlying assumptions. It's certainly a very interesting prospect," he added.
Beyond the MLJ field in Brunei, Hibiscus Petroleum also maintains a strong international presence with assets in Australia, Vietnam and the United Kingdom.