Hibiscus agrees to terms for controlling interest in MLJ Field offshore Brunei
Offshore staff
KUALA LUMPUR, Malaysia — TotalEnergies has agreed to sell TotalEnergies EP (Brunei) B.V. to Hibiscus Petroleum for $259 million, with the transaction set to close during the fall.
The Brunei subsidiary has a 37.5% operated interest in Block B, 85 km offshore Brunei, with Shell Deepwater Borneo holding 35% and Brunei Energy Exploration holding 27.5%.
Block B contains the Maharaja Lela/Jamalulam (MLJ) Field, which started producing in 1999 and delivered 9,000 bbl/d net to TotalEnergies in 2023.
“This transaction fits with our strategy to actively manage our portfolio by monetizing mature assets and to allocate our talents to the most promising assets,” said Jean-Pierre Sbraire, the group’s CFO.
Hibiscus described MLJ as a “high-quality gas asset” in a prolific hydrocarbon-bearing region. The concession carries production rights of up to 15 years (through Nov. 23, 2039), subject to the agreement of the partners.
The deal would add up to 21.7 MMboe to Hibiscus’ 2P reserves to 82.6 MMboe as of Jan. 1, 2024, while its total net production of oil, condensate and gas would rise by 7,865 boe/d to 29,263 boe/d.
Management believes its track record of slowing production decline while increasing daily production for its existing assets could improve performance at MLJ and reduce operating costs per barrel.
06.14.2024
