The group noted that TotalEnergies EP (Brunei) was incorporated in the Netherlands, and via its branch is operating in Brunei Darussalam with its principal activity being hydrocarbon exploration and production, and owns a 37.5% operated interest in the Block B Maharajalela Jamalulalam (MLJ) field.
In a filing with Bursa Malaysia, Hibiscus said the MLJ field is a high-quality gas asset located offshore Brunei.
“Located in a prolific hydrocarbon-bearing region, the asset was discovered in 1989 and (has been) producing gas and condensate since 1999.
“The asset has long-term production rights of up to 15 years (expiring on Nov 23, 2039) if extended with the agreement of the joint venture parties,” it said.
Hibiscus said other parties holding the remaining interest in the asset are Shell Deepwater Borneo Ltd (35%) and Brunei Energy Exploration Sdn Bhd (27.5%), a company ultimately owned by the Brunei Minister for Finance Corporation.
The group said the funding of the proposed acquisition is expected to be sourced from a combination of internally generated funds and its existing debt or other facilities.
Hibiscus said this asset is expected to add a net of up to 21.7 million barrels of oil equivalent (MMboe) to the group’s proven and probable (2P) oil reserves, an increase of 36% from 60.9 MMboe to 82.6 MMboe as at Jan 1, 2024.
Meanwhile, the total daily net production of oil, condensate and gas is expected to increase by circa 7,865 boe per day from 21,398 boe per day to 29,263 boe per day in 2024.
It said this is expected to bring the gas production share of the group’s portfolio to almost 50%, in line with the group’s energy transition strategy of acquiring gas-weighted assets in stable regulatory jurisdictions.
“This transaction also represents a significant step towards fulfilling the group’s aspiration of becoming a net zero emissions producer by 2050. The group is set to gain multiple benefits from the proposed acquisition.
“Beyond acquiring a well-established gas asset in Brunei and taking over its operations, the proposed acquisition further strengthens the group’s position as an independent exploration and production (E&P) player in the region,” it said.
Hibiscus’ managing director Kenneth Pereira said the additional volumes from this transaction are material for the company.
He said it is expected to provide an uplift of nearly 86% to gas production while bringing the company closer towards achieving the 2026 Mission of growing the group’s net production to 35,000-50,000 boe per day.
“In addition, employees of TotalEnergies Brunei, who have been operating this asset safely and efficiently for many years are expected to join the group as part of the transaction. They bring with them a wealth of knowledge and experience.
“We welcome them and look forward to working together to enhance the value of the asset safely and efficiently for all stakeholders.
“Most importantly, we are excited by the opportunity to work with our joint venture partners, Shell Deepwater Borneo, Brunei Energy Exploration as well as the government of Brunei,” he said.
In a separate filing, Hibiscus announced that Bursa Malaysia approved the company’s request for a suspension in the trading of the securities of the company on the Main Market from 9am to 5pm today.
Trading is expected to resume at 9am on Tuesday, June 18.