“The acquisition is being made through a farm-in arrangement with Petronas Carigali Sdn Bhd,” said Hibiscus Petroleum in a statement.

The transaction is currently pending regulatory approvals and fulfilment of conditions precedent.

Hibiscus Petroleum’s country head for Malaysia and Vietnam, Pascal Hos said the group has had an interest in PM327 for some years.

“The proximity of the northern area of the block to the PM3 Commercial Arrangement Area (PM3 CAA) offered significant synergistic opportunities upon any discoveries.

“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 said.

The PM327 PSC was offered as part of the Malaysia Bid Round 2022 by Malaysia Petroleum Management and was awarded to Petronas Carigali and EPMV in 2023.

“Being one of the largest exploration blocks offshore Peninsular Malaysia, the PM327 PSC is located south of the PM3 CAA PSC.

“PM3 CAA PSC is within a commercial arrangement area between Malaysia and Vietnam and is operated by another wholly-owned subsidiary of Hibiscus Petroleum,” it stated.

The PM327 PSC covers an area of more than 12,500 sq km, with water depths ranging between 20m and 75m.

Exploration activities have commenced since 2023 and the programme includes the acquisition of new 3D seismic, reprocessing of existing seismic data, and the phased drilling of exploration wells.